A person, who in good faith either assists a conservator or deals with him for value in any transaction, other than those requiring a court order as required in this part is protected as if the conservator properly exercised the power. The fact that a person knowingly deals with a conservator does not alone require the person to inquire into the existence of a power or the propriety of its exercise, except that restrictions on powers of conservators which are endorsed on letters as provided in Section 62-5-404 or Section 62-5-428 are effective as to third persons. A person is not bound to see to the proper application of estate assets paid or delivered to a conservator. This protection extends to instances in which some procedural irregularity or jurisdictional defect occurred in proceedings leading to the issuance of letters. This protection is not a substitution for that provided by comparable provisions of the laws relating to commercial transactions and laws simplifying transfers of securities by fiduciaries.
HISTORY: 1986 Act No. 539, Section 1. Formerly Code 1976 Section 62-5-423, renumbered and amended by 2017 Act No. 87 (S.415), Section 5.A, eff January 1, 2019.
Code Commissioner's Note
At the direction of the Code Commissioner, "Section 62-5-404 or Section 62-5-428" was substituted for "Section 62-5-424" to correct a scrivener's error.
Editor's Note
Prior Laws: Former Section 62-5-420 was titled Conservators; title by appointment, and had the following history: 1986 Act No. 539, Section 1; 1993 Act No. 164, Part II, Section 74B. See now, Code 1976 Section 62-5-417.