2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 77 - Trusts
7790.2 - Protection of person dealing with trustee - UTC 1012.

     § 7790.2.  Protection of person dealing with trustee - UTC 1012.
        (a)  (Reserved).
        (a.1)  Protection from liability.--Unless a person assisting
     or dealing with a trustee has actual knowledge that the trustee
     is committing a breach of trust or has knowledge of such facts
     that the trustee's conduct amounts to bad faith, the person:
            (1)  may assume without inquiry the existence of trust
        powers and their proper exercise by the trustee;
            (2)  is not bound to inquire whether the trustee has
        power to act or is properly exercising the power; and
            (3)  is fully protected in dealing with the trustee as if
        the trustee possessed and properly exercised the powers the
        trustee purports to exercise.
        (b)  No requirement to inquire.--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.
        (c)  (Reserved).
        (c.1)  Ultra vires.--A trustee's act may not be set aside or
     not specifically enforced because the trustee's act was not
     authorized by section 7780.5 (relating to powers of trustees -
     UTC 815) or 7780.6 (relating to illustrative powers of trustee)
     or because the trustee's act was authorized but the authority
     was improperly exercised. A court's power to set aside a
     transaction for fraud, accident, mistake or self-dealing is
     unaffected by this subsection.
        (d)  Former trustee.--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.
        (e)  Effect of other laws.--Comparable protective provisions
     of other laws relating to commercial transactions or transfer of
     securities by fiduciaries prevail over the protection provided
     by this section.

        Cross References.  Section 7790.2 is referred to in sections
     7705, 7772, 7781 of this title.