State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_32 > GS_32-8

§32‑8.  Deposit in name of fiduciary as such.

If a deposit is made in a bankto the credit of a fiduciary as such, the bank is authorized to pay the amountof the deposit or any part thereof upon the check of the fiduciary, signed withthe name in which such deposit is entered, without being liable to theprincipal, unless the bank pays the check with actual knowledge that thefiduciary is committing a breach of his obligation as fiduciary in drawing thecheck or with knowledge of such facts that its action in paying the checkamounts to bad faith.

If, however, such a check ispayable to the drawee bank and is delivered to it in payment of or as securityfor a personal debt of the fiduciary to it, the bank is liable to the principalif the fiduciary in fact commits a breach of his obligation as fiduciary indrawing or delivering the check. (1923, c. 85, s. 7; C.S., s.1864(k).)