State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_32 > GS_32-10

§32‑10.  Deposit in fiduciary's personal account.

If a fiduciary makes a depositin a bank to his personal credit of checks drawn by him upon an account in hisown name as fiduciary or of checks payable to him as fiduciary or of checksdrawn by him upon an account in the name of his principal if he is empowered todraw checks thereon, or checks payable to his principal and indorsed by him, ifhe is empowered to indorse such checks, or if he otherwise makes a deposit offunds held by him as fiduciary, the bank receiving such deposit is not bound toinquire whether the fiduciary is committing thereby a breach of his obligationas fiduciary; and the bank is authorized to pay the amount of the deposit orany part thereof upon the personal check of the fiduciary without being liableto the principal, unless the bank receives the deposit or pays the check withactual knowledge that the fiduciary is committing a breach of his obligation asfiduciary in making such deposit or in drawing such check, or with knowledge ofsuch facts that its action in receiving the deposit or paying the check amountsto bad faith. (1923, c. 85, s. 9; C.S., s. 1864(m).)