Indiana Code
Chapter 4. Rules Governing the Rights of Third Parties
30-4-4-1. Presumption of Trustee's Authority

Sec. 1. (Presumption of Trustee's Authority)
(a) Except as provided in subsection (b) of this section, any third person dealing with the trustee or assisting him in conducting a transaction:
(1) may assume without inquiry that the trustee has the powers he purports to exercise and has exercised them properly; and
(2) shall not be responsible for the application of money or property paid or delivered to the trustee.
(b) If the third person has actual knowledge that the trustee is exceeding his powers or is improperly exercising them, that person will not be protected under subsection (a) of this section.
(c) If a trust which includes real estate is a public record in the county in which the real estate is situated, a third person dealing with the trustee with respect to that real estate shall be deemed to have actual notice of the terms of the trust.
Formerly: Acts 1971, P.L.416, SEC.5.