§556-8  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 fiduciary, 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
endorse 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 personal check of the fiduciary without being liable to the principal,
unless the bank receives the deposit or pays the check with actual knowledge
that the fiduciary is committing a breach of his obligation as fiduciary in
making such deposit or in drawing such check, or with knowledge of such facts
that its action in receiving the deposit or paying the check amounts to bad
faith. [L 1945, c 197, §9; RL 1955, §189-9; HRS §556-8]



 



Cross References



 



  Uniform Commercial Code, see chapter 490, Articles 3 and 4.