17-4909. Nonliability of third persons.
17-4909
17-4909. Nonliability of third persons.
(a) No person who participates in the acquisition, disposition,
assignment or transfer of a security by or to a fiduciary, including a
person who guarantees the signature of the fiduciary, is liable for
participation in any breach of fiduciary duty by reason of failure to
inquire whether the transaction involves a breach, unless it is shown that
he acted with actual knowledge that the proceeds of the transaction were
being or were to be used wrongfully for the individual benefit of the
fiduciary, or that the transaction was otherwise in breach of duty.
(b) If a corporation or transfer agent makes a transfer pursuant to an
assignment by a fiduciary, a person who guaranteed the signature of the
fiduciary is not liable on the guarantee to any person to whom the
corporation or transfer agent by reason of this act incurs no liability.
(c) This section does not impose any liability upon the corporation or
its transfer agent.
History: L. 1961, ch. 123, § 7; July 1.