386.130 Deposits in name of fiduciary as such -- In name of principal.
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/ky/chapter-386/386-130A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)If a deposit is made in a bank or trust company to the credit of a fiduciary as such,
the bank or trust company may pay the amount of the deposit or any part thereof
upon the check of the fiduciary, signed with the name in which the deposit is
entered, without being liable to the principal, unless it 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.
(2)If a check is drawn upon the account of his principal by a fiduciary empowered to
draw checks upon his principal's account, the bank or trust company may pay the
check without being liable to the principal, unless it 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.