22-1-4 - Transfer of negotiable instruments by fiduciaries. - Utah Statutes

State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-01 > 22-1-4

22-1-4. Transfer of negotiable instruments by fiduciaries.
If any negotiable instrument payable or indorsed to a fiduciary as such is endorsed by thefiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by afiduciary empowered to endorse such instrument on behalf of his principal, the indorsee is notbound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary inendorsing or delivering the instrument, and is not chargeable with notice that the fiduciary iscommitting a breach of his obligation as fiduciary, unless he takes the instrument with actualknowledge of such breach or with knowledge of such facts that his action in taking the instrumentamounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of,or as security for, a personal debt of the fiduciary to the actual knowledge of the creditor, or istransferred in any transaction known by the transferee to be for the personal benefit of thefiduciary, the creditor or other transferee is liable to the principal, if the fiduciary in fact commitsa breach of his obligation as fiduciary in transferring the instrument.

No Change Since 1953

State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-01 > 22-1-4

22-1-4. Transfer of negotiable instruments by fiduciaries.
If any negotiable instrument payable or indorsed to a fiduciary as such is endorsed by thefiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by afiduciary empowered to endorse such instrument on behalf of his principal, the indorsee is notbound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary inendorsing or delivering the instrument, and is not chargeable with notice that the fiduciary iscommitting a breach of his obligation as fiduciary, unless he takes the instrument with actualknowledge of such breach or with knowledge of such facts that his action in taking the instrumentamounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of,or as security for, a personal debt of the fiduciary to the actual knowledge of the creditor, or istransferred in any transaction known by the transferee to be for the personal benefit of thefiduciary, the creditor or other transferee is liable to the principal, if the fiduciary in fact commitsa breach of his obligation as fiduciary in transferring the instrument.

No Change Since 1953

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-01 > 22-1-4

22-1-4. Transfer of negotiable instruments by fiduciaries.
If any negotiable instrument payable or indorsed to a fiduciary as such is endorsed by thefiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by afiduciary empowered to endorse such instrument on behalf of his principal, the indorsee is notbound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary inendorsing or delivering the instrument, and is not chargeable with notice that the fiduciary iscommitting a breach of his obligation as fiduciary, unless he takes the instrument with actualknowledge of such breach or with knowledge of such facts that his action in taking the instrumentamounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of,or as security for, a personal debt of the fiduciary to the actual knowledge of the creditor, or istransferred in any transaction known by the transferee to be for the personal benefit of thefiduciary, the creditor or other transferee is liable to the principal, if the fiduciary in fact commitsa breach of his obligation as fiduciary in transferring the instrument.

No Change Since 1953