Section 15-1.5-111 - Exemption of third persons from liability(1) 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. In the absence of knowledge to the contrary, the third person is not responsible for determining: (a) The validity of the purported custodial trustee's designation;(b) The propriety of, or the authority under this article for, any action of the purported custodial trustee;(c) The validity or propriety of an instrument executed or instruction given pursuant to this article either by the person purporting to make a transfer or declaration or by the purported custodial trustee; or(d) The propriety of the application of property vested in the purported custodial trustee.L. 99: Entire article added, p. 1217, § 1, effective August 4.OFFICIAL COMMENT
This section is based upon Section 16 of the UTMA and protects third persons who deal in good faith with the custodial trustee.