§ 30-2-5-7 — Nonliability of third persons

(a) No person who participates in the
acquisition, disposition, assignment or transfer of a security by or to a
fiduciary, including a person who guarantees the signature of the
fiduciary, is liable for participation in any breach of fiduciary duty by
reason of failure to inquire whether the transaction involves such a
breach unless it is shown that he acted with actual knowledge that the
proceeds of the transaction were being or were to be used wrongfully
for the individual benefit of the fiduciary or that the transaction was
otherwise in breach of duty.
(b) If a corporation or transfer agent makes a transfer pursuant to an
assignment by a fiduciary, a person who guaranteed the signature of the
fiduciary is not liable on the guarantee to any person to whom the
corporation or transfer agent by reason of this chapter incurs no
liability.
(c) This section does not impose any liability upon the corporation
or its transfer agent.
Formerly: Acts 1961, c.124, s.7. As amended by Acts 1982,
P.L.171, SEC.100.