With respect to a third person dealing with the association in the association's capacity
as a trustee, the existence of trust powers and their proper exercise by the association
may be assumed without inquiry. A third person is not bound to inquire whether the association has power to act
as trustee or is properly exercising trust powers. A third person, without actual knowledge that the association is exceeding or improperly
exercising its powers, is fully protected in dealing with the association as if it
possessed and properly exercised the powers it purports to exercise. A third person is not bound to assure the proper application of trust assets paid
or delivered to the association in its capacity as trustee.
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