Colorado § 15-14-424 - Protection of person dealing with conservator.

§ 15-14-424. Protection of person dealing with conservator.

(1) A person who assists or deals with a conservator in good faith and for value in any transaction other than one requiring a court order under section 15-14-410 or 15-14-411 is protected as though the conservator properly exercised the power. That a person knowingly deals with a conservator does not alone require the person to inquire into the existence of a power or the propriety of its exercise, but restrictions on powers of conservators that are endorsed on letters as provided in section 15-14-110 are effective as to third persons. A person who pays or delivers assets to a conservator is not responsible for their proper application.

(2) Protection provided by this section extends to any procedural irregularity or jurisdictional defect that occurred in proceedings leading to the issuance of letters and is not a substitute for protection provided to persons assisting or dealing with a conservator by comparable provisions in other law relating to commercial transactions or to simplifying transfers of securities by fiduciaries.

(3) Any recorded instrument evidencing a transaction described in this section on which a state documentary fee is noted pursuant to section 39-13-103, C.R.S., shall be prima facie evidence that such transaction was made for value.

Source: L. 2000: Entire part R&RE, p. 1824, § 1, effective January 1, 2001 (see § 15-17-103).

Editor's note: This section is similar to former § 15-14-423 as it existed prior to 2001.

ANNOTATION

Third parties knowingly dealing with a conservator are not required to make inquiry into the existence or propriety of the conservator's power, except that restrictions on powers of conservators which are endorsed on letters provided in this section are effective as to third persons. In re Conservatorship of Roth, 804 P.2d 265 (Colo. App. 1990) (decided prior to 2000 repeal and reenactment).