Section 404.061

Title XXVI TRADE AND COMMERCE

Chapter 404

Effective - 28 Aug 1985   

  404.061.  Exemption of third person from liability. — A third person, including an issuer of securities, transfer agent, financial institution, broker, life insurance company, benefit plan, personal representative, or trustee, in good faith and without court order, may act on the instructions of or otherwise deal with any person purporting to make a transfer under sections 404.005 to 404.094 or purporting to act in the capacity of a custodian, successor custodian or legal representative of a custodian and, in the absence of actual knowledge, is not responsible for determining:

  (1)  The validity of the purported custodian's or successor custodian's designation;

  (2)  The propriety of, or the authority under sections 404.005 to 404.094 for, any act of the purported custodian;

  (3)  The validity or propriety under sections 404.005 to 404.094 of any instrument or instructions executed or given by the person purporting to make a transfer under sections 404.005 to 404.094 or by the purported custodian;

  (4)  The propriety of the application or use of any custodial property by the custodian;

  (5)  The validity of a delivery of custodial property by a custodian or legal representative of a custodian to a successor custodian; or

  (6)  The validity of a delivery of custodial property by the custodian to the minor or the age of the minor at the time of the delivery.

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(L. 1985 S.B. 35, et al. § 8)