(760 ILCS 70/5a) (from Ch. 32, par. 439.54a)
Sec. 5a.
Non-liability of third persons.
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.
If a corporation 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 by reason of
this Act incurs no liability.
This section does not impose any liability upon the corporation.
(Source: Laws 1961, p. 2433.)
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