New Mexico § 46-8-8 - Non-liability of third persons

§ 46-8-8. Non-liability of third persons

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 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 The Uniform Act for Simplification of Fiduciary Security Transfers incurs no liability. C. This section does not impose any liability upon the corporation or its transfer

agent.