Oklahoma § 60-175.19 - Torts of trustee - Exoneration or reimbursement

§ 60-175.19. Torts of trustee - Exoneration or reimbursement

A trustee who has incurred personal liability for a tort

committed in the administration of the trust is entitled to

exoneration therefor from the trust property;

A. If he has not discharged the claim, or to be reimbursed

therefor out of trust funds if he has paid the claim; if

1. The tort was a common incident of the kind of business

activity in which the trustee was properly engaged for the trust; or

2. Although the tort was not a common incident of such activity, if

neither the trustee nor any officer or employee of the trustee was

guilty of actionable negligence in incurring the liability.

B. If a trustee commits a tort which increases the value of the

trust property, he shall be entitled to exoneration or reimbursement

with respect thereto to the extent of such increase in value, even

though he would not otherwise be entitled to exoneration or

reimbursement.

Oklahoma Statutes - Title 60. Property

Where the trust instrument reserves to the trustor or vests in

an advisory or investment committee or any other person, including a

cotrustee, authority to direct the making or retention of

investments, the excluded trustee or trustees shall not be liable as

a trustee for any loss resulting from the making or retention of any

investment pursuant to such mandatory direction, except to the

extent the excluded trustee is negligent in carrying out the

execution of the directed investment or other directed action, and

nothing herein shall relieve any trustee having custody of any asset

from liability for exercising due diligence in the safekeeping

thereof.

Laws 1941, p. 254, § 19; Laws 1968, c. 15, § 4, emerg. eff. Feb. 19,

1968.