§ 18-4-26 - Powers of fiduciaries in connection with environmental laws.
SECTION 18-4-26
§ 18-4-26 Powers of fiduciaries inconnection with environmental laws. – (a) In addition to the powers, rights, and remedies which may be set forth inany will, trust, or other document which is the source of authority, in whichno provision is made to the contrary, any fiduciary as defined according to§ 18-4-15(a)(2) shall be deemed to have the following powers, rights, andremedies to exercise, in addition to any other power he, she, or it maylawfully have in his, her, or its discretion, or if a corporation in thediscretion of its duly authorized officer or committee:
(1) To inspect and monitor property to which the fiduciarytakes legal title (including interests in sole proprietorships, partnerships,or corporations and any assets owned by these business enterprises) or overwhich a fiduciary may exercise his, her, or its control, for the purpose ofdetermining compliance with environmental laws affecting the property, and torespond to any actual or threatened violation of any environmental lawsaffecting the property held or controlled by the fiduciary;
(2) To take, on behalf of an estate, trust, person, orbusiness, any action necessary to prevent, abate, or otherwise remedy anyactual or threatened violation of any environmental laws affecting propertyheld or controlled by the fiduciary, either before or after the initiation ofan enforcement action by any government body;
(3) To refuse to accept property in trust if the fiduciarydetermines that any property to be donated to a trust either is contaminated byany hazardous substances, or the property is being used or has been used forany activities directly or indirectly involving hazardous substances, whichcould result in liability to the trust, estate, person, or business orotherwise impair the value of the assets held or controlled in the trust;
(4) To settle or compromise, at any time, any and all claimsagainst the estate, trust, person, or business which may be asserted by anygovernmental body or private party, involving the alleged violation of anyenvironmental laws affecting property held by the estate or trust or owned bythe person or business; and
(5) To disclaim any power granted by any document or anystatute or rule of law which, in the sole discretion of the fiduciary, maycause the fiduciary to incur personal liability under any environmental laws.
(b) For purposes of this section, "environmental laws" meanany federal, state, or local law, rule, regulation, or ordinance relating toprotection of the environment or human health. For purposes of this section,"hazardous substances" mean any substances defined as hazardous or toxic orotherwise regulated by any environmental laws.
(c) The fiduciary shall be entitled to charge the reasonablecost of any inspection, insurance, review, abatement, response, or cleanup, orany other remedial action, as authorized in this section, against the income orprincipal of the estate, trust, personal estate, or business assets and shallnot be personally responsible for those costs. The fiduciary shall not bepersonally liable to any beneficiary or any other party for any decrease invalue or exhaustion of assets by reason of the fiduciary's reasonablecompliance with any environmental laws, specifically including any reportingrequirements under those laws.
(d) The provisions of this section shall apply to allfiduciary relationships now in existence or subsequently created, and to thefiduciary actions or inactions occurring after July 21, 1992.