Section 75A-1-209 - Deposits in a fiduciary's personal accountIf 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 from § 22-1-9 and amended by Chapter 364, 2024 General Session ,§ 22, eff. 9/1/2024.Amended by Chapter 365, 2024 General Session ,§ 45, eff. 5/1/2024.