MARVIN MANDEL, Governor                               237

IF A CHECK OR OTHER BILL OF EXCHANGE IS DRAWN BY A
FIDUCIARY OR IN THE NAME OF HIS PRINCIPAL BY A FIDUCIARY
EMPOWERED TO DRAW THE 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 TRANSFERED 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 THE BREACH OR WITH KNOWLEDGE OF THE FACTS
THAT HIS ACTION IN TAKING THE INSTRUMENT AMOUNTS TO BAD
FAITH.

15-206. DEPOSIT IN NAME OF FIDUCIARY AS SUCH.

IF A DEPOSIT IS MADE IN A BANK TO THE CREDIT OF A
FIDUCIARY, THE BANK IS AUTHORIZED TO PAY THE AMOUNT OF
THE DEPOSIT OR ANY PART OF IT UPON THE CHECK OF THE
FIDUCIARY, SIGNED WITH THE NAME IN WHICH THE DEPOSIT IS
ENTERED, 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 THE CHECK OR WITH KNOWLEDGE OF THE
FACTS THAT ITS ACTION IN PAYING THE CHECK AMOUNTS TO BAD
FAITH. IF, HOWEVER, THE 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.

15-207. 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 THE ACCOUNT OF THE PRINCIPAL, THE BANK
IS AUTHORIZED TO PAY THE 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 THE CHECK, OR WITH
KNOWLEDGE OF THE FACTS THAT ITS ACTION IN PAYING THE
CHECK AMOUNTS TO BAD FAITH. IF, HOWEVER, THE 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.

15-208. DEPOSIT IN PERSONAL ACCOUNT OF FIDUCIARY.