33-1259. Association as trustee
With respect to a third person dealing with the association in the association's
capacity as a trustee, the existence of trust powers and their proper exercise by the
association may be assumed without inquiry. A third person is not bound to inquire
whether the association has power to act as trustee or is properly exercising trust
powers. A third person, without actual knowledge that the association is exceeding or
improperly exercising its powers, is fully protected in dealing with the association as
if it possessed and properly exercised the powers it purports to exercise. A third
person is not bound to assure the proper application of trust assets paid or delivered to
the association in its capacity as trustee.
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