[§554A-7]  Third persons protected in
dealing with trustee.  With respect to a third person dealing with a
trustee or assisting a trustee in the conduct of a transaction, the existence
of trust powers and their proper exercise by the trustee may be assumed without
inquiry.  The third person is not bound to inquire whether the trustee has
power to act or is properly exercising the power; and a third person, without
actual knowledge that the trustee is exceeding the trustee's powers or
improperly exercising them, is fully protected in dealing with the trustee as
if the trustee possessed and properly exercised the powers the trustee purports
to exercise.  A third person is not bound to assure the proper application of
trust assets paid or delivered to the trustee. [L 1985, c 61, pt of §1]