§ 42–1903.21. Unit owners’ association as trustee.

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