Sec. 2. (Transfers by the Trustee to Third Persons) (a) If, in transferring an interest in trust property to a third party, the trustee is not committing a breach of trust, the transferee holds the interest free of the trust and incures no liability to the beneficiary. (b) A third person, to whom an interest in trust property is transferred by the trustee in breach of trust, takes his interest free of the trust if he: (1) takes for value and without notice of the breach of trust; and (2) is not taking part in what he knows to be an illegal transaction. Formerly: Acts 1971, P.L.416, SEC.5.
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