(1) "Fiduciary"means an agent, trustee, partner, corporate officer or director, or otherrepresentative owing a fiduciary duty with respect to an instrument.
(2) "Representedperson" means the principal, beneficiary, partnership, corporation, orother person to whom the duty stated in subdivision (1) is owed.
(b) If (i) aninstrument is taken from a fiduciary for payment or collection or for value,(ii) the taker has knowledge of the fiduciary status of the fiduciary, and(iii) the represented person makes a claim to the instrument or its proceeds onthe basis that the transaction of the fiduciary is a breach of fiduciary duty,the following rules apply:
(1) Notice of breach offiduciary duty by the fiduciary is notice of the claim of the representedperson.
(2) In the case of aninstrument payable to the represented person or the fiduciary as such, thetaker has notice of the breach of fiduciary duty if the instrument is (i) takenin payment of or as security for a debt known by the taker to be the personaldebt of the fiduciary, (ii) taken in a transaction known by the taker to be forthe personal benefit of the fiduciary, or (iii) deposited to an account otherthan an account of the fiduciary, as such, or an account of the representedperson.
(3) If an instrument isissued by the represented person or the fiduciary as such, and made payable tothe fiduciary personally, the taker does not have notice of the breach offiduciary duty unless the taker knows of the breach of fiduciary duty or knowssuch facts that his action in taking the instrument is not in good faith.
(4) If an instrument isissued by the represented person or the fiduciary as such, to the taker aspayee, the taker has notice of the breach of fiduciary duty if the instrumentis (i) taken in payment of or as security for a debt known by the taker to bethe personal debt of the fiduciary, (ii) taken in a transaction known by thetaker to be for the personal benefit of the fiduciary, or (iii) deposited to anaccount other than an account of the fiduciary, as such, or an account of therepresented person. (1899, c. 733, s. 45, 52, 53, 55, 56; Rev., ss. 2194,2201, 2202, 2204, 2205; C.S., ss. 3026, 3033, 3034, 3036, 3037; 1965, c. 700,s. 1; 1995, c. 232, s. 1.)
(1) "Fiduciary"means an agent, trustee, partner, corporate officer or director, or otherrepresentative owing a fiduciary duty with respect to an instrument.
(2) "Representedperson" means the principal, beneficiary, partnership, corporation, orother person to whom the duty stated in subdivision (1) is owed.
(b) If (i) aninstrument is taken from a fiduciary for payment or collection or for value,(ii) the taker has knowledge of the fiduciary status of the fiduciary, and(iii) the represented person makes a claim to the instrument or its proceeds onthe basis that the transaction of the fiduciary is a breach of fiduciary duty,the following rules apply:
(1) Notice of breach offiduciary duty by the fiduciary is notice of the claim of the representedperson.
(2) In the case of aninstrument payable to the represented person or the fiduciary as such, thetaker has notice of the breach of fiduciary duty if the instrument is (i) takenin payment of or as security for a debt known by the taker to be the personaldebt of the fiduciary, (ii) taken in a transaction known by the taker to be forthe personal benefit of the fiduciary, or (iii) deposited to an account otherthan an account of the fiduciary, as such, or an account of the representedperson.
(3) If an instrument isissued by the represented person or the fiduciary as such, and made payable tothe fiduciary personally, the taker does not have notice of the breach offiduciary duty unless the taker knows of the breach of fiduciary duty or knowssuch facts that his action in taking the instrument is not in good faith.
(4) If an instrument isissued by the represented person or the fiduciary as such, to the taker aspayee, the taker has notice of the breach of fiduciary duty if the instrumentis (i) taken in payment of or as security for a debt known by the taker to bethe personal debt of the fiduciary, (ii) taken in a transaction known by thetaker to be for the personal benefit of the fiduciary, or (iii) deposited to anaccount other than an account of the fiduciary, as such, or an account of therepresented person. (1899, c. 733, s. 45, 52, 53, 55, 56; Rev., ss. 2194,2201, 2202, 2204, 2205; C.S., ss. 3026, 3033, 3034, 3036, 3037; 1965, c. 700,s. 1; 1995, c. 232, s. 1.)
(1) "Fiduciary"means an agent, trustee, partner, corporate officer or director, or otherrepresentative owing a fiduciary duty with respect to an instrument.
(2) "Representedperson" means the principal, beneficiary, partnership, corporation, orother person to whom the duty stated in subdivision (1) is owed.
(b) If (i) aninstrument is taken from a fiduciary for payment or collection or for value,(ii) the taker has knowledge of the fiduciary status of the fiduciary, and(iii) the represented person makes a claim to the instrument or its proceeds onthe basis that the transaction of the fiduciary is a breach of fiduciary duty,the following rules apply:
(1) Notice of breach offiduciary duty by the fiduciary is notice of the claim of the representedperson.
(2) In the case of aninstrument payable to the represented person or the fiduciary as such, thetaker has notice of the breach of fiduciary duty if the instrument is (i) takenin payment of or as security for a debt known by the taker to be the personaldebt of the fiduciary, (ii) taken in a transaction known by the taker to be forthe personal benefit of the fiduciary, or (iii) deposited to an account otherthan an account of the fiduciary, as such, or an account of the representedperson.
(3) If an instrument isissued by the represented person or the fiduciary as such, and made payable tothe fiduciary personally, the taker does not have notice of the breach offiduciary duty unless the taker knows of the breach of fiduciary duty or knowssuch facts that his action in taking the instrument is not in good faith.
(4) If an instrument isissued by the represented person or the fiduciary as such, to the taker aspayee, the taker has notice of the breach of fiduciary duty if the instrumentis (i) taken in payment of or as security for a debt known by the taker to bethe personal debt of the fiduciary, (ii) taken in a transaction known by thetaker to be for the personal benefit of the fiduciary, or (iii) deposited to anaccount other than an account of the fiduciary, as such, or an account of therepresented person. (1899, c. 733, s. 45, 52, 53, 55, 56; Rev., ss. 2194,2201, 2202, 2204, 2205; C.S., ss. 3026, 3033, 3034, 3036, 3037; 1965, c. 700,s. 1; 1995, c. 232, s. 1.)
