§36B-3-119. Association as trustee.
With respect to a third person dealing with the association
in the association's capacity as a trustee, the existence of
trust powers and their proper exercise by the association may be
assumed without inquiry. A third person is not bound to inquire
whether the association has power to act as trustee or is
properly exercising trust powers. A third person, without
actual knowledge that the association is exceeding or improperly
exercising its powers, is fully protected in dealing with the
association as if it possessed and properly exercised the powers
it purports to exercise. A third person is not bound to assure
the proper application of trust assets paid or delivered to the
association in its capacity as trustee.