Ky. Rev. Stat. § 381.9199

Current through 2024 Ky. Acts ch. 225

Section 381.9199 - Association as trustee

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.

KRS 381.9199

Effective:1/1/2011
Created 2010, Ky. Acts ch. 97, sec. 50, effective1/1/2011.