Chapter 6 - § 6.5 • ASSOCIATION AS TRUSTEE

• Jurisdiction: Colorado

§ 6.5 • ASSOCIATION AS TRUSTEE

When a third person deals with the association in its capacity as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. The third person is not bound to inquire whether the association has the power to act as trustee or is properly exercising trust powers. That person is fully protected in dealing with the association as if it possessed and properly exercised the powers it purports to exercise, without actual knowledge that the association is exceeding or improperly exercising its powers. He or...