22-5-4 - Assignment of security by a fiduciary.
22-5-4. Assignment of security by a fiduciary.
Except as otherwise provided in this chapter, a corporation or transfer agent making atransfer of a security pursuant to an assignment by a fiduciary:
(1) may assume without inquiry that the assignment, even though to the fiduciary himselfor to his nominee, is within his authority and capacity and is not in breach of his fiduciary duties;
(2) may assume without inquiry that the fiduciary has complied with any controllinginstrument and with the law of the jurisdiction governing the fiduciary relationship, including anylaw requiring the fiduciary to obtain court approval of the transfer; and
(3) is not charged with notice of and is not bound to obtain or examine any court recordor any recorded or unrecorded document relating to the fiduciary relationship or the assignment,even though the record or document is in its possession.
Amended by Chapter 20, 1995 General Session