55-8-13. Participation in breach of fiduciary duty--Nonliability of third persons.
No person who participates in the acquisition, disposition, assignment or transfer of a security by or to a fiduciary, including a person who guarantees the signature of the fiduciary, is liable for participation in any breach of fiduciary duty by reason of failure to inquire whether the transaction involves a breach unless it is shown that he acted with actual knowledge that the proceeds of the transaction were being or were to be used wrongfully for the individual benefit of the fiduciary or that the transaction was otherwise in breach of duty.
Source: SL 1961, ch 22, ยง7 (1).
Structure South Dakota Codified Laws
Title 55 - Fiduciaries and Trusts
Chapter 08 - Registration And Transfer Of Securities Held By Fiduciaries
Section 55-8-1 - Definition of terms.
Section 55-8-2 - Rights and duties of corporation and transfer agent--Law governing.
Section 55-8-3 - Application of chapter.
Section 55-8-4 - Registration of security in name of fiduciary.
Section 55-8-5 - Assignment of security by fiduciary--Assumption as to authority and capacity.
Section 55-8-11 - Liability of corporation or transfer agent for making or refusing transfer.
Section 55-8-12 - Nonliability of corporation or transfer agent for authorized acts.
Section 55-8-13 - Participation in breach of fiduciary duty--Nonliability of third persons.
Section 55-8-14 - Liability of guarantor of signature of fiduciary.
Section 55-8-16 - Tax obligations of corporation or transfer agent not affected by chapter.