§554B-11 - Exemption of third person from liability.
[§554B-11] Exemption of third person from
liability. A third person in good faith and without a court order may act
on instructions of, or otherwise deal with, a person purporting to make a
transfer as, or purporting to act in the capacity of, a custodial trustee, and,
in the absence of knowledge to the contrary, is not responsible for
determining:
(1) The validity of the purported custodial trustee's
designation;
(2) The propriety of, or the authority under this
chapter for, any action of the purported custodial trustee;
(3) The validity or propriety under this chapter of
any instrument or instruction executed or given either by the person purporting
to make a transfer or by the purported custodial trustee; or
(4) The propriety of the application of any property
delivered to the purported custodial trustee. [L 1989, c 76, pt of §1]