Nebraska Statutes 30-4309. (UDTA 9) Duty and liability of directed trustee
(UDTA 9) (a) Subject to subsections (b) and (c) of this section, a directed trustee shall take reasonable action to comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision (b)(1) of section 30-4306, and the trustee is not liable for the action.
Terms Used In Nebraska Statutes 30-4309
- Action: shall include any proceeding in any court of this state. See Nebraska Statutes 49-801
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Trustee: A person or institution holding and administering property in trust.
(b) A directed trustee must not comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision (b)(1) of section 30-4306 to the extent that by complying the trustee would engage in willful misconduct.
(c) A directed trustee must determine that the trust director’s exercise of power of direction under subsection (a) of section 30-4306 or appropriation of further power under subsection (b) of section 30-4306 is granted by the terms of the trust pursuant to subsection (c) of section 30-4306.
(d) An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:
(1) the breach involved the trustee’s or other director’s willful misconduct;
(2) the release was induced by improper conduct of the trustee or other director in procuring the release; or
(3) at the time of the release, the director did not know the material facts relating to the breach.
(e) A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
(f) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.