New Jersey § 3a:41-3

§ 3a:41-3.

If a fiduciary in whose name are registered any shares of stock, bonds or other securities

of any corporation, public or private, or company or other association, or of any

trust, transfers the same, such corporation or company or other association, or any

of the managers of the trust, or its or their transfer agent, is not bound to inquire

whether the fiduciary is committing a breach of his obligation as fiduciary in making

the transfer, or to see to the performance of the fiduciary obligations, and is liable

for registering such transfer only where registration of the transfer is made with

actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary

in making the transfer, or with knowledge of such facts that the action in registering

the transfer amounts to bad faith.