A. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
B. A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.
C. A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
History: Laws 2003, ch. 122, § 10-1009; recompiled as § 46A-10-1010 by Laws 2007, ch. 128, § 30.
Recompilation. — Laws 2007, ch. 128, § 30 recompiled former 46A-10-1009 NMSA 1978, as enacted by Laws 2003, ch. 122, § 10-1009, as 46A-10-1010 NMSA 1978, effective July 1, 2007.
Compiler's note. — Laws 2007, ch. 128, § 30 recompiled Laws 2003, ch. 122, §§ 10-1005 through 10-1009 as §§ 46A-10-1006 through 46A-10-1010 NMSA 1978. Section 10-1010 NMSA 1978 was previously enacted as "Reserved" by Laws 2003, ch. 122, § 10-1010. The compiler has deleted the compilation of Laws 2003, ch. 122, § 10-1010 as superceded by 2007, ch. 128, § 30.
Law reviews. — For article, "The New Mexico Uniform Trust Code," see 34 N.M.L. Rev. 1 (2004).
Structure New Mexico Statutes
Chapter 46A - Uniform Trust Code
Article 10 - Liability of Trustees and Rights of Persons Dealing with Trustees
Section 46A-10-1001 - Breach of trust.
Section 46A-10-1002 - Damages for breach of trust.
Section 46A-10-1003 - Damages in absence of breach.
Section 46A-10-1004 - Attorney fees and costs.
Section 46A-10-1005 - Limitation of action against trustee.
Section 46A-10-1006 - Reliance on trust instrument.
Section 46A-10-1007 - Event affecting administration or distribution.
Section 46A-10-1008 - Exculpation of trustee.
Section 46A-10-1009 - Beneficiary's consent, release or ratification.
Section 46A-10-1010 - Limitation on personal liability of trustee.
Section 46A-10-1011 - Interest as general partner.
Section 46A-10-1012 - Protection of person dealing with trustee.