22-5-8 - Nonliability of third persons.
22-5-8. Nonliability of third persons.
(1) No person who participates in the acquisition, disposition, assignment or transfer of asecurity by or to a fiduciary including a person who guarantees the signature of the fiduciary isliable for participation in any breach of fiduciary duty by reason of failure to inquire whether thetransaction involves such a breach unless it is shown that he acted with actual knowledge that theproceeds of the transaction were being or were to be used wrongfully for the individual benefit ofthe fiduciary or that the transaction was otherwise in breach of duty.
(2) If a corporation or transfer agent makes a transfer pursuant to an assignment by afiduciary, a person who guaranteed the signature of the fiduciary is not liable on the guarantee toany person to whom the corporation or transfer agent by reason of this act incurs no liability.
(3) This section does not impose any liability upon the corporation or its transfer agent.
Amended by Chapter 20, 1995 General Session