CHAPTER 4. UNIFORM FIDUCIARIES ACT

IC 30-2-4
    Chapter 4. Uniform Fiduciaries Act

IC 30-2-4-1
Definitions
    Sec. 1. (a) In this chapter unless the context or subject-matterotherwise requires:
        (1) "Bank" includes any person or association of persons,whether incorporated or not, carrying on the business ofbanking.
        (2) "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 acorporation, public or private, public officer, or any otherperson acting in a fiduciary capacity for any person, trust orestate.
        (3) "Person" includes a corporation, limited liability company,partnership, or other association, or two (2) or more personshaving a joint or common interest.
        (4) "Principal" includes any person to whom a fiduciary as suchowes an obligation.
    (b) A thing is done "in good faith" within the meaning of thischapter, when it is in fact done honestly, whether it be donenegligently or not.
(Formerly: Acts 1927, c.17, s.1.) As amended by Acts 1982, P.L.171,SEC.92; P.L.8-1993, SEC.463.

IC 30-2-4-2
Application of payments made to fiduciaries
    Sec. 2. A person who in good faith pays or transfers to a fiduciaryany money or other property which the fiduciary as such isauthorized to receive, is not responsible for the proper applicationthereof by the fiduciary; and any right to title acquired from thefiduciary in consideration of such payment or transfer is not invalidin consequence of a misapplication by the fiduciary.
(Formerly: Acts 1927, c.17, s.2.)

IC 30-2-4-3
Registration or transfer of securities held by fiduciaries
    Sec. 3. If an executor, administrator, trustee, guardian or otherfiduciary or the nominee of a fiduciary in whose name are registeredor to be registered any shares of stock, bonds or other securities ofany corporation, public or private, or company or other association,applies for the registration or transfer of the same, such corporationor company or other association, or its or their transfer agent, is notbound to inquire whether the fiduciary or nominee is committing abreach of his obligation as fiduciary or nominee in making suchregistration or transfer, or to see to the performance of the fiduciaryobligation, and is liable for such registration or transfer only where

such registration or transfer is made with actual knowledge that suchfiduciary or nominee is committing a breach of trust in requestingsuch registration or transfer, or with knowledge of such facts that itsor their participation in such registration or transfer amounts to badfaith.
(Formerly: Acts 1927, c.17, s.3; Acts 1947, c.351, s.3.)

IC 30-2-4-4
Transfer of negotiable instrument by fiduciary
    Sec. 4. If any negotiable instrument payable or indorsed to afiduciary as such is indorsed by the fiduciary, or if any negotiableinstrument payable or indorsed to his principal is indorsed by afiduciary empowered to indorse such instrument on behalf of hisprincipal, the indorsee is not bound to inquire whether the fiduciaryis committing a breach of his obligation as fiduciary in indorsing ordelivering the instrument, and is not chargeable with notice that thefiduciary is committing a breach of his obligation as fiduciary unlesshe takes the instrument with actual knowledge of such breach or withknowledge of such facts that his action in taking the instrumentamounts to bad faith. If, however, such instrument is transferred bythe fiduciary in payment of or as security for a personal debt of thefiduciary to the actual knowledge of the creditor, or is transferred inany transaction known by the transferee to be for the personal benefitof the fiduciary, the creditor or other transferee is liable to theprincipal if the fiduciary, in fact commits a breach of his obligationas fiduciary in transferring the instrument.
(Formerly: Acts 1927, c.17, s.4.)

IC 30-2-4-5
Check drawn by fiduciary payable to third person
    Sec. 5. If a check or other bill of exchange is drawn by a fiduciaryas such, or in the name of his principal by a fiduciary empowered todraw such instrument in the name of his principal, the payee is notbound to inquire whether the fiduciary is committing a breach of hisobligation as fiduciary in drawing or delivering the instrument, andis not chargeable with notice that the fiduciary is committing abreach of his obligation as fiduciary unless he takes the instrumentwith actual knowledge of such breach or with knowledge of suchfacts that his action in taking the instrument amounts to bad faith. If,however, such instrument is payable to a personal creditor of thefiduciary and delivered to the creditor in payment of or as securityfor a personal debt of the fiduciary to the actual knowledge of thecreditor, or is drawn and delivered in any transaction known by thepayee to be for the personal benefit of the fiduciary, the creditor orother payee is liable to the principal if the fiduciary in fact commitsa breach of his obligation as fiduciary in drawing or delivering theinstrument.
(Formerly: Acts 1927, c.17, s.5.)

IC 30-2-4-6 Check drawn by and payable to fiduciary
    Sec. 6. If a check or other bill of exchange is drawn by a fiduciaryas such or in the name of his principal by a fiduciary empowered todraw such instrument in the name of his principal, payable to thefiduciary personally, or payable to a third person and by himtransferred to the fiduciary, and is thereafter transferred by thefiduciary, whether in payment of a personal debt of the fiduciary orotherwise, the transferee is not bound to inquire whether thefiduciary is committing a breach of his obligation as fiduciary intransferring the instrument, and is not chargeable with notice that thefiduciary is committing a breach of his obligation as fiduciary unlesshe takes the instrument with actual knowledge of such breach or withknowledge of such facts that his action in taking the instrumentamounts to bad faith.
(Formerly: Acts 1927, c.17, s.6.)

IC 30-2-4-7
Deposit in name of fiduciary
    Sec. 7. If a deposit is made in a bank to the credit of a fiduciary assuch, the bank is authorized to pay the amount of the deposit or anypart thereof upon the check of the fiduciary, signed with the name inwhich such deposit is entered, without being liable to the principal,unless the bank pays the check with the actual knowledge that thefiduciary is committing a breach of his obligation as fiduciary indrawing the check or with knowledge of such facts that its action inpaying the check amounts to bad faith. If, however, such a check ispayable to the drawee bank and is delivered to it in payment of or assecurity for a personal debt of the fiduciary to it, the bank is liable tothe principal if the fiduciary in fact commits a breach of hisobligation as fiduciary in drawing or delivering the check.
(Formerly: Acts 1927, c.17, s.7.)

IC 30-2-4-8
Deposit in name of principal
    Sec. 8. If a check is drawn upon the account of his principal in abank by a fiduciary who is empowered to draw checks upon hisprincipal's account, the bank is authorized to pay such check withoutbeing liable to the principal, unless the bank pays the check withactual knowledge that the fiduciary is committing a breach of hisobligation as fiduciary in drawing such check, or with knowledge ofsuch 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 deliveredto it in payment of or as security for a personal debt of the fiduciaryto it, the bank is liable to the principal if the fiduciary in factcommits a breach of his obligation as fiduciary in drawing ordelivering the check.
(Formerly: Acts 1927, c.17, s.8.)

IC 30-2-4-9
Deposit in fiduciary's personal account    Sec. 9. If a fiduciary makes a deposit in a bank to his personalcredit of checks drawn by him upon an account in his own name asfiduciary, or of checks payable to him as fiduciary, or of checksdrawn by him upon an account in the name of his principal if he isempowered to draw checks thereon, or of checks payable to hisprincipal and indorsed by him, if he is empowered to indorse suchchecks, or if he otherwise makes a deposit of funds held by him asfiduciary, the bank receiving such deposit is not bound to inquirewhether the fiduciary is committing thereby a breach of hisobligation as fiduciary; and the bank is authorized to pay the amountof the deposit or any part thereof upon the personal check of thefiduciary without being liable to the principal, unless the bankreceives the deposit or pays the check with actual knowledge that thefiduciary is committing a breach of his obligation as fiduciary inmaking such deposit or in drawing such check, or with knowledge ofsuch facts that its action in receiving the deposit or paying the checkamounts to bad faith.
(Formerly: Acts 1927, c.17, s.9.)

IC 30-2-4-10
Deposit in names of two or more trustees
    Sec. 10. When a deposit is made in a bank in the name of two (2)or more persons as trustees and a check is drawn upon the trustaccount by any trustee or trustees authorized by the other trustee ortrustees to draw checks upon the trust account, neither the payee norother holder nor the bank is bound to inquire whether it is a breachof trust to authorize such trustee or trustees to draw checks upon thetrust account, and is not liable unless the circumstances be such thatthe action of the payee or other holder or the bank amounts to badfaith.
(Formerly: Acts 1927, c.17, s.10.)

IC 30-2-4-11
Prior transactions
    Sec. 11. The provisions of this chapter shall not apply totransactions taking place prior to May 16, 1927.
(Formerly: Acts 1927, c.17, s.11.) As amended by Acts 1982,P.L.171, SEC.93.

IC 30-2-4-12
Cases not provided for
    Sec. 12. In any case not provided for in this chapter, the rules oflaw and equity, including the law merchant and those rules of lawand equity relating to trusts, agency, negotiable instruments andbanking, shall continue to apply.
(Formerly: Acts 1927, c.17, s.12.) As amended by Acts 1982,P.L.171, SEC.94.

IC 30-2-4-13
Uniformity of interpretation    Sec. 13. This chapter shall be so interpreted and construed as toeffectuate its general purpose to make uniform the law of those stateswhich enact it.
(Formerly: Acts 1927, c.17, s.13.) As amended by Acts 1982,P.L.171, SEC.95.

IC 30-2-4-14
Short title
    Sec. 14. This chapter may be cited as the Uniform Fiduciaries Act.
(Formerly: Acts 1927, c.17, s.14.) As amended by Acts 1982,P.L.171, SEC.96.