Tennessee § 66-27-418 Association as trustee

Tennessee Statutes

§ 66-27-418 — Association as trustee

Tennessee § 66-27-418

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This text of Tennessee § 66-27-418 (Association as trustee) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tenn. Code Ann. § 66-27-418 (2026).

Text

With respect to a third person dealing with the association in the association's capacity as a trustee, either under § 66-27-413 for insurance proceeds, or § 66-27-318 following termination, 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 

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With respect to a third person dealing with the association in the association's capacity as a trustee, either under § 66-27-413 for insurance proceeds, or § 66-27-318 following termination, 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.