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§ 5-421. Security transfers involving fiduciaries

West's Annotated Code of MarylandCourts and Judicial Proceedings

West's Annotated Code of Maryland
Courts and Judicial Proceedings
Title 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)
Subtitle 4. Immunities and Prohibited Actions--Businesses, Associations, and Charities (Refs & Annos)
MD Code, Courts and Judicial Proceedings, § 5-421
§ 5-421. Security transfers involving fiduciaries
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Assignment” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
(3) “Corporation” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
(4) “Fiduciary” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
(5) “Person” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
(6) “Transfer” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
(7) “Transfer agent” has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.
Immunity unless actual knowledge that proceeds would be used wrongfully
(b) A 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 not liable for participation in any breach of fiduciary duty by reason of failure to inquire whether the transaction involves a breach unless it is shown that the person 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.
Persons who guarantee signature of fiduciary
(c) If a corporation or transfer agent makes a transfer under 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 section or Title 15, Subtitle 3 of the Estates and Trusts Article, incurs no liability.

Credits

Added as Courts and Judicial Proceedings § 5-360 by Acts 1990, c. 546, § 3, eff. Oct. 1, 1990. Renumbered as Courts and Judicial Proceedings § 5-421 by Acts 1997, c. 14, § 9, eff. April 8, 1997.
MD Code, Courts and Judicial Proceedings, § 5-421, MD CTS & JUD PRO § 5-421
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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