Page:United States Statutes at Large Volume 74.djvu/364

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PUBLIC LAW 86-584-JULY 5, 1960

[74 S T A T.

NONLIABILITY OIT THIRD PERSONS

SEC. 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) I f 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 oh 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. TERRITORIAL APPLICATION

SEC. 8. (a) The rights and duties of a corporation and its transfer agents in registering a security in the name of a fiduciary or in making a transfer of a security pursuant to an assignment by a fiduciary are governed by the law of the jurisdiction under whose laws the corporation is organized. (b) This Act applies to the rights and duties of a person other than the corporation and its transfer agents with regard to acts and omissions in the District of Columbia m connection with the acquisition, disposition, assignment or transfer of a security by or to a fiduciary and of a person who guarantees in the District of Columbia the signature of a fiduciary in connection with such a transaction. TAX OBLIGATIONS

SEC. 9. This Act does not affect any obligation of a corporation or transfer agent with respect to estate, inheritance, succession or other taxes imposed by the laws of the District of Columbia. UNIFORMITY OF INTERPRETATION

SEC. 10. This Act shall be so construed as to effectuate its general purpose to make uniform the law of those States which enact it. SHORT TITLE

SEC. 11. This Act may be cited as the District of Columbia Uniform Act for Simplification of Fiduciary Security Transfers. REPEAL

SEC. 12. Section 3 of the Uniform Fiduciaries Act, approved May D. c. code 28- ^4^ 1928 (45 Stat. 510), is hereby repealed. 2303 TIME OF TAKING EFFFXIT

SEC. 13. This Act shall take effect on the date of its enactment. Approved July 5, 1960.

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