1382 LAWS OF MARYLAND. [CH. 572

whether the fiduciary is committing a breach of his obligation
as fiduciary in transferring the instrument, and is not charge-
able with notice that the fiduciary is committing a breach of
his obligation as fiduciary unless he takes the instrument with
actual knowledge of such breach or with knowledge of such facts
that Ms action in taking the instrument amounts to bad faith.

SEC. 7. (Deposit in Name of Fiduciary as Such. ) If a de-
posit is made in a bank to the credit of a fiduciary, as such,
the bank is authorized to pay the amount of the deposit or any
part thereof upon the check of the fiduciary, signed with the
name in which such deposit is entered, without being liable to
the principal, unless the bank pays the check with actual knowl-
edge 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.
If, however, such a check is payable to the drawee bank and is
delivered to it in payment of or as security for a personal debt
of the fiduciary to it, the bank is liable to the principal if the
fiduciary in fact commits a breach of his obligation as fiduciary
in drawing or delivering the check.

SEC. 8. (Deposit in Name of Principal. ) If a check is drawn
upon the account of his principal in a bank by a fiduciary who
is empowered to draw checks upon his principal's account, the
bank is authorized to pay such check without being liable to the
principal, unless the bank pays the check with actual knowledge
that the fiduciary is committing a breach of his obligation as
fiduciary in drawing such check, or with knowledge of such facts
that its action in paying the check amounts to bad faith. If,
however, such a check is payable to the drawee bank and is
delivered to it in payment of or as security for a personal debt
of the fiduciary to it, the bank is liable to the principal if the
fiduciary in fact commits a breach of his obligation as fiduciary
in drawing or delivering the check.

SEC. 9. (Deposit in Fiduciary's Personal Account. ) If a
fiduciary makes a deposit in a bank to his personal credit of
checks drawn by him upon an account in his own name as fidu-
ciary, or of checks payable to him as fiduciary, or of checks
drawn by him upon an account in the name of his principal if
he is empowered to draw checks thereon, or of checks payable
to his principal and indorsed by him, if he is empowered to in-
dorse such checks, or if he otherwise makes a deposit of funds
held by him as fiduciary, the bank receiving such deposit is not
bound to inquire whether the fiduciary is committing thereby a
breach of his obligation as fiduciary; and the bank is authorized
to pay the amount of the deposit or any part thereof upon the