Assignment of security by fiduciary--Assumption as to authority and capacity

Except as otherwise provided in this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary may assume without inquiry that the assignment, even though to the fiduciary himself or to his nominee, is within his authority and capacity and is not in breach of his fiduciary duties. Source: SL 1961, ch 22, § 3 (1).