Idaho Code § 68-306

Current through the 2024 Regular Session
Section 68-306 - CHECK DRAWN BY AND PAYABLE TO FIDUCIARY

If a check or other bill of exchange is drawn by a fiduciary as such or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, payable to the fiduciary personally, or payable to a third person and by him transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such facts that his action in taking the instrument amounts to bad faith.

Idaho Code § 68-306

[(68-306) 1925, ch. 217, sec. 6, p. 393; I.C.A., sec. 66-303.]