Exemption of third persons from liability.

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(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:

  1. The validity of the purported custodial trustee's designation;

  2. The propriety of, or the authority under this article for, any action of the purportedcustodial trustee;

  3. The validity or propriety of an instrument executed or instruction given pursuant tothis article either by the person purporting to make a transfer or declaration or by the purported custodial trustee; or

  4. The propriety of the application of property vested in the purported custodial trustee.

Source: L. 99: Entire article added, p. 1217, § 1, effective August 4.


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