22-1-8 - Checks drawn in name of principal. - Utah Statutes

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Statutes > Utah > Title-22 > Chapter-01 > 22-1-8

22-1-8. Checks drawn in name of principal.
If a check is drawn upon the account of his principal in a bank by a fiduciary who isempowered to draw checks upon his principal's account, the bank is authorized to pay such checkwithout being liable to the principal, unless the bank pays the check with actual knowledge thatthe fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or withknowledge of such facts that its action in paying the check amounts to bad faith. If, however,such a check is payable to the drawee bank and is delivered to it in payment of, or as security for,a personal debt of the fiduciary to it, the bank is liable to the principal, if the fiduciary in factcommits a breach of his obligation as fiduciary in drawing or delivering the check.

No Change Since 1953

State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-01 > 22-1-8

22-1-8. Checks drawn in name of principal.
If a check is drawn upon the account of his principal in a bank by a fiduciary who isempowered to draw checks upon his principal's account, the bank is authorized to pay such checkwithout being liable to the principal, unless the bank pays the check with actual knowledge thatthe fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or withknowledge of such facts that its action in paying the check amounts to bad faith. If, however,such a check is payable to the drawee bank and is delivered to it in payment of, or as security for,a personal debt of the fiduciary to it, the bank is liable to the principal, if the fiduciary in factcommits a breach of his obligation as fiduciary in drawing or delivering the check.

No Change Since 1953

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-01 > 22-1-8

22-1-8. Checks drawn in name of principal.
If a check is drawn upon the account of his principal in a bank by a fiduciary who isempowered to draw checks upon his principal's account, the bank is authorized to pay such checkwithout being liable to the principal, unless the bank pays the check with actual knowledge thatthe fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or withknowledge of such facts that its action in paying the check amounts to bad faith. If, however,such a check is payable to the drawee bank and is delivered to it in payment of, or as security for,a personal debt of the fiduciary to it, the bank is liable to the principal, if the fiduciary in factcommits a breach of his obligation as fiduciary in drawing or delivering the check.

No Change Since 1953