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 aperson who guarantees the signature of the fiduciary, is liable forparticipation in any breach of fiduciary duty by reason of failure toinquire whether the transaction involves a breach, unless it is shown thathe acted with actual knowledge that the proceeds of the transaction werebeing or were to be used wrongfully for the individual benefit of thefiduciary, or that the transaction was otherwise in breach of duty.

      (b)   If a corporation or transfer agent makes a transfer pursuant to anassignment by a fiduciary, a person who guaranteed the signature of thefiduciary is not liable on the guarantee to any person to whom thecorporation or transfer agent by reason of this act incurs no liability.

      (c)   This section does not impose any liability upon the corporation orits transfer agent.

      History:   L. 1961, ch. 123, § 7; July 1.