(Transfers by the Trustee to Third Persons)

1. (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.

2. (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. (1) takes for value and without notice of the breach of trust; and

   2. (2) is not taking part in what he knows to be an illegal transaction.

      Formerly: Acts 1971, P.L.416, SEC.5.