75A-1-209. Deposits in a fiduciary's personal account.
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Effective 9/1/2024
75A-1-209. Deposits in a fiduciary's personal account.
If a principal authorizes a fiduciary to write or endorse a check for the principal, and the fiduciary writes a check payable to the fiduciary and deposits the check in a bank into the fiduciary's personal account:
(1)the bank is not bound to inquire whether a fiduciary is committing a breach of the fiduciary's obligation to a principal; and
(2)the bank is authorized to pay the amount of the deposit or any part of a personal check of the fiduciary without being liable to the principal unless:
(a)the bank deposits the check for a fiduciary with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation in depositing the check; or
(b)the bank knows that depositing the check for the fiduciary amounts to bad faith.
Renumbered and Amended by Chapter 364 , 2024 General Session