New Jersey § 14:18-7

§ 14:18-7.

(a) 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 such 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. (b) If a corporation or transfer agent makes a transfer pursuant to an assignment

by a fiduciary, a person who guaranteed the signature of the fiduciary is not liable

on the guarantee to any person to whom the corporation or transfer agent by reason

of this act incurs no liability. (c) This section does not impose any liability upon the corporation or its transfer

agent.