14-7507. Deposit in name of principal
If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.
Section: Previous 14-7431 14-7501 14-7502 14-7503 14-7504 14-7505 14-7506 14-7507 14-7508 14-7509 14-7510 14-7511 14-7512 14-7651 14-7652 NextLast modified: October 13, 2016