381.9199 Association as trustee.
124 words·~1 min read·
/ky/chapter-381/381-9199A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
With respect to a third person dealing with the association in the association's capacity as a trustee:
(1)The existence of trust powers and their proper exercise by the association may be
assumed without inquiry;
(2)A third person is not bound to inquire whether the association has power to act as
trustee or is properly exercising trust powers;
(3)A third person, without actual knowledge that the association is exceeding or
improperly exercising its powers, is fully protected in dealing with the association
as if it possessed and properly exercised the powers it purports to exercise; and
(4)A third person is not bound to ensure the proper application of trust assets paid or
delivered to the association in its capacity as trustee.