Payment or transfer to fiduciary--Nonliability of transferor for improper application

A person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary. Source: SL 1943, ch 19, § 2; SDC Supp 1960, § 6.0702.