Iowa Code 633A.4603 – Obligations of third parties
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Terms Used In Iowa Code 633A.4603
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
- Trustee: A person or institution holding and administering property in trust.
633A.4603 Obligations of third parties.
1. With respect to a third party dealing with a trustee or assisting a trustee in the conduct of
a transaction, if the third party acts in good faith and for a valuable consideration and without knowledge that the trustee is exceeding the trustee’s powers or is improperly exercising them, the following apply:
a. A third party is not bound to inquire as to whether a trustee has power to act or is properly exercising a power and may assume without inquiry the existence of a trust power and its proper exercise.
b. A third party is fully protected in dealing with or assisting a trustee, as if the trustee has and is properly exercising the power the trustee purports to exercise.
2. A third party who acts in good faith is not bound to ensure the proper application of trust property paid or delivered to the trustee.
3. If a third party acting in good faith and for a valuable consideration enters into a transaction with a former trustee without knowledge that the person is no longer a trustee, the third party is fully protected as if the former trustee were still a trustee.
99 Acts, ch 125, §81, 109
C2001, §633.4603
2005 Acts, ch 38, §54
CS2005, §633A.4603
Referred to in §633A.4502
1. With respect to a third party dealing with a trustee or assisting a trustee in the conduct of
a transaction, if the third party acts in good faith and for a valuable consideration and without knowledge that the trustee is exceeding the trustee’s powers or is improperly exercising them, the following apply:
a. A third party is not bound to inquire as to whether a trustee has power to act or is properly exercising a power and may assume without inquiry the existence of a trust power and its proper exercise.
b. A third party is fully protected in dealing with or assisting a trustee, as if the trustee has and is properly exercising the power the trustee purports to exercise.
2. A third party who acts in good faith is not bound to ensure the proper application of trust property paid or delivered to the trustee.
3. If a third party acting in good faith and for a valuable consideration enters into a transaction with a former trustee without knowledge that the person is no longer a trustee, the third party is fully protected as if the former trustee were still a trustee.
99 Acts, ch 125, §81, 109
C2001, §633.4603
2005 Acts, ch 38, §54
CS2005, §633A.4603
Referred to in §633A.4502