South Dakota Codified Laws
Chapter 07 - Third Party Responsibility For Fiduciary Acts
Section 55-7-1 - Liability of third persons dealing with trustees.

55-7-1. Liability of third persons dealing with trustees.
One who actually and in good faith transfers any money or other property to a trustee as such is not bound to see to the application thereof; and his rights can in no way be prejudiced by a misapplication thereof by the trustee. Other persons must at their peril see to the proper application of money or other property paid or delivered by them.

Source: SDC 1939, §59.0117.

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Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 55 - Fiduciaries and Trusts

Chapter 07 - Third Party Responsibility For Fiduciary Acts

Section 55-7-1 - Liability of third persons dealing with trustees.

Section 55-7-2 - Definition of terms.

Section 55-7-3 - A thing done "in good faith" defined.

Section 55-7-4 - Payment or transfer to fiduciary--Nonliability of transferor for improper application.

Section 55-7-5 - Check or bill of exchange drawn by fiduciary payable to third person--Liability of payee.

Section 55-7-6 - Transfer of check or bill of exchange drawn by fiduciary who holds it as payee or transferee.

Section 55-7-7 - Bank account in name of fiduciary--Check drawn by fiduciary--Bank's liability to principal.