1380. LAWS OF MARYLAND. [CH. 572

of Public General Laws to follow Article 37 of Bagby's Anno-
tated Code and to be known as Article 37A, title "Fiduci-
aries.''

Be it enacted by the General Assembly of Maryland, That an
additional Article be added to the Code of Public General Laws
to follow Article 37 of Bagby 's Annotated Code and to be known
as Article 37A and to read as follows:

SECTION 1. (Definition of Terms.) (1) In this Act, unless
the context or subject-matter otherwise requires:

"Bank" includes any person or association of persons, whether
incorporated or not, carrying on the business of banking.

"Fiduciary" includes a trustee under any trust, expressed,
implied, resulting or constructive, executor, administrator,
guardian, conservator, curator, 'receiver, trustee in bankruptcy,
assignee for the benefit of creditors, partner, agent, officer of
a corporation, public or private, public officer or any other per-
son acting in a fiduciary capacity for any person, trust or
estate.

"Person" includes a corporation, partnership or other as-
sociation, or two or more persons having a joint or common
interest.

"Principal" includes any person to whom a fiduciary as such
owes an obligation.

SEC. 2. (Application of Payments Made to Fiduciaries. ) A
person who in good faith pays or transfers to a fiduciary any
money or other property which the fiduciary as such is author-
ized to receive, is not responsible for the proper application
thereof by the fiduciary; and any 'right or title acquired from
the fiduciary in consideration of such payment or transfer is not
invalid in consequence of a misapplication by the fiduciary.

SEC. 3. (Registration of Transfer of Securities Held by Fidu-
ciaries.) If a fiduciary in whose name are registered any shares
of stock, bonds or other securities of any corporation, public or
private, or company or other association, or of any trust, trans-
fers the same, such corporation or company or other association,
or any of the managers of the trust, or its or their transfer
agent, is not bound to inquire whether the fiduciary is committing
a breach of his obligation as fiduciary in making the transfer,
or to see to the performance of the fiduciary obligation, and is
liable for registering such transfer only where registration of
the transfer is made with actual knowledge that the fiduciary is
committing a breach of his obligation as fiduciary in making the
transfer, or with knowledge of such facts that the action in regis-
tering the transfer amounts to bad faith.