§ 381.9199

381.9199 Association as trustee. With respect to a third person dealing with the association in the association's capacity as a trustee: (1) The existence of trust powers and their proper exercise by the association may be assumed without inquiry; (2) A third person is not bound to inquir e whether the association has power to act as trustee or is properly exercising trust powers; (3) A third person, without actual knowledge that the association is exceeding or improperly exercising its powers, is fully protected in dealing with the associa tion as if it possessed and properly exercised the powers it purports to exercise; and (4) A third person is not bound to ensure the proper application of trust assets paid or delivered to the association in its capacity as trustee. Effective: January 1, 2 011 History: Created 2010 Ky. Acts ch. 97, sec. 50, effective January 1, 2011.