3B:14-59 - Deposit in names of two or more trustees;Ā liability of payee, holder or bank
3B:14-59.Ā Deposit in names of two or more trustees;Ā liability of payee, holder or bank
When a deposit is made in a bank in the names of two or more persons as trustees and a check is drawn upon the trust account by any trustee or trusteesĀ authorized by the other trustee or trustees to draw checks upon the trustĀ account, neither the payee nor other holder nor the bank is bound to inquireĀ whether it is a breach of trust to authorize the trustee or trustees to drawĀ checks upon the trust account, and is not liable unless the circumstances beĀ such that the action of the payee or other holder or the bank amounts to badĀ faith.
L.1981, c. 405, s. 3B:14-59, eff. May 1, 1982.
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When a deposit is made in a bank in the names of two or more persons as trustees and a check is drawn upon the trust account by any trustee or trusteesĀ authorized by the other trustee or trustees to draw checks upon the trustĀ account, neither the payee nor other holder nor the bank is bound to inquireĀ whether it is a breach of trust to authorize the trustee or trustees to drawĀ checks upon the trust account, and is not liable unless the circumstances beĀ such that the action of the payee or other holder or the bank amounts to badĀ faith.
L.1981, c. 405, s. 3B:14-59, eff. May 1, 1982.
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