14-7506. Deposit in name of fiduciary as such
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, 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 the 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 14-7430 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 NextLast modified: October 13, 2016