44-1773. Purchase or resale of consigned fine
art by fine art dealer
A. If a work of fine art is trust property under section 44-1772 when initially
received by the art dealer it remains trust property notwithstanding the subsequent
purchase of the work of fine art by the art dealer directly or indirectly for the art
dealer's own account until the purchase price is paid in full to the artist.
B. If the art dealer resells a work of fine art to which subsection A of this
section applies to a bona fide third party before the artist has been paid in full, the
work of fine art ceases to be trust property and the proceeds of the resale are trust
funds in the hands of the art dealer for the benefit of the artist to the extent
necessary to pay any balance still due to the artist. The trusteeship of the proceeds
continues until the fiduciary obligation of the art dealer with respect to the
transaction is discharged in full.
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