(1012) Protection of person dealing with trustee
N.D. Cent. Code § 59-18-12
in effect59-18-12. (1012) Protection of person dealing with trustee
1. A person other than a beneficiary who in good faith assists a trustee, or who in good
faith and for value deals with a trustee, without knowledge that the trustee is
exceeding or improperly exercising the trustee's powers, is protected from liability as if
the trustee properly exercised the power.
2. A person other than a beneficiary who in good faith deals with a trustee is not required
to inquire into the extent of the trustee's powers or the propriety of their exercise.
3. A person who in good faith delivers assets to a trustee need not ensure their proper
application.
4. A person other than a beneficiary who in good faith assists a former trustee, or who in
good faith and for value deals with a former trustee, without knowledge that the
trusteeship has terminated, is protected from liability as if the former trustee were still a
trustee.
5. Comparable protective provisions of other laws relating to commercial transactions or
transfer of securities by fiduciaries prevail over the protection provided by this section.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c18.pdf#nameddest=59-18-12Fetched: 10/16/2026