A. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.

B. A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.

C. A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.

History: Laws 2003, ch. 122, § 10-1009; recompiled as § 46A-10-1010 by Laws 2007, ch. 128, § 30.

Recompilation. — Laws 2007, ch. 128, § 30 recompiled former 46A-10-1009 NMSA 1978, as enacted by Laws 2003, ch. 122, § 10-1009, as 46A-10-1010 NMSA 1978, effective July 1, 2007.

Compiler's note. — Laws 2007, ch. 128, § 30 recompiled Laws 2003, ch. 122, §§ 10-1005 through 10-1009 as §§ 46A-10-1006 through 46A-10-1010 NMSA 1978. Section 10-1010 NMSA 1978 was previously enacted as "Reserved" by Laws 2003, ch. 122, § 10-1010. The compiler has deleted the compilation of Laws 2003, ch. 122, § 10-1010 as superceded by 2007, ch. 128, § 30.

Law reviews. — For article, "The New Mexico Uniform Trust Code," see 34 N.M.L. Rev. 1 (2004).