CHAPTER 4. UNIFORM FIDUCIARIES ACT
IC 30-2-4
Chapter 4. Uniform Fiduciaries Act
IC 30-2-4-1
Definitions
Sec. 1. (a) In this chapter unless the context or subject-matter
otherwise requires:
(1) "Bank" includes any person or association of persons,
whether incorporated or not, carrying on the business of
banking.
(2) "Fiduciary" includes a trustee under any trust, expressed,
implied, resulting or constructive, executor, administrator,
guardian, conservator, curator, receiver, trustee in bankruptcy,
assignee for the benefit of creditors, partner, agent, officer of a
corporation, public or private, public officer, or any other
person acting in a fiduciary capacity for any person, trust or
estate.
(3) "Person" includes a corporation, limited liability company,
partnership, or other association, or two (2) or more persons
having a joint or common interest.
(4) "Principal" includes any person to whom a fiduciary as such
owes an obligation.
(b) A thing is done "in good faith" within the meaning of this
chapter, when it is in fact done honestly, whether it be done
negligently or not.
(Formerly: Acts 1927, c.17, s.1.) As amended by Acts 1982, P.L.171,
SEC.92; P.L.8-1993, SEC.463.
IC 30-2-4-2
Application of payments made to fiduciaries
Sec. 2. A person who in good faith pays or transfers to a fiduciary
any money or other property which the fiduciary as such is
authorized to receive, is not responsible for the proper application
thereof by the fiduciary; and any right to title acquired from the
fiduciary in consideration of such payment or transfer is not invalid
in consequence of a misapplication by the fiduciary.
(Formerly: Acts 1927, c.17, s.2.)
IC 30-2-4-3
Registration or transfer of securities held by fiduciaries
Sec. 3. If an executor, administrator, trustee, guardian or other
fiduciary or the nominee of a fiduciary in whose name are registered
or to be registered any shares of stock, bonds or other securities of
any corporation, public or private, or company or other association,
applies for the registration or transfer of the same, such corporation
or company or other association, or its or their transfer agent, is not
bound to inquire whether the fiduciary or nominee is committing a
breach of his obligation as fiduciary or nominee in making such
registration or transfer, or to see to the performance of the fiduciary
obligation, and is liable for such registration or transfer only where
such registration or transfer is made with actual knowledge that such
fiduciary or nominee is committing a breach of trust in requesting
such registration or transfer, or with knowledge of such facts that its
or their participation in such registration or transfer amounts to bad
faith.
(Formerly: Acts 1927, c.17, s.3; Acts 1947, c.351, s.3.)
IC 30-2-4-4
Transfer of negotiable instrument by fiduciary
Sec. 4. If any negotiable instrument payable or indorsed to a
fiduciary as such is indorsed by the fiduciary, or if any negotiable
instrument payable or indorsed to his principal is indorsed by a
fiduciary empowered to indorse such instrument on behalf of his
principal, the indorsee is not bound to inquire whether the fiduciary
is committing a breach of his obligation as fiduciary in indorsing or
delivering the instrument, and is not chargeable with notice that the
fiduciary is committing a breach of his obligation as fiduciary unless
he takes the instrument with actual knowledge of such breach or with
knowledge of such facts that his action in taking the instrument
amounts 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 is transferred in
any transaction known by the transferee to be for the personal benefit
of the fiduciary, the creditor or other transferee is liable to the
principal if the fiduciary, in fact commits a breach of his obligation
as fiduciary in transferring the instrument.
(Formerly: Acts 1927, c.17, s.4.)
IC 30-2-4-5
Check drawn by fiduciary payable to third person
Sec. 5. If a check or other bill of exchange is drawn by a fiduciary
as such, or in the name of his principal by a fiduciary empowered to
draw such instrument in the name of his principal, the payee is not
bound to inquire whether the fiduciary is committing a breach of his
obligation as fiduciary in drawing or delivering the instrument, and
is not chargeable with notice that the fiduciary is committing a
breach of his obligation as fiduciary unless he takes the instrument
with actual knowledge of such breach or with knowledge of such
facts that his action in taking the instrument amounts to bad faith. If,
however, such instrument is payable to a personal creditor of the
fiduciary and delivered to the creditor in payment of or as security
for a personal debt of the fiduciary to the actual knowledge of the
creditor, or is drawn and delivered in any transaction known by the
payee to be for the personal benefit of the fiduciary, the creditor or
other payee is liable to the principal if the fiduciary in fact commits
a breach of his obligation as fiduciary in drawing or delivering the
instrument.
(Formerly: Acts 1927, c.17, s.5.)
IC 30-2-4-6
Check drawn by and payable to fiduciary
Sec. 6. If a check or other bill of exchange is drawn by a fiduciary
as such or in the name of his principal by a fiduciary empowered to
draw such instrument in the name of his principal, payable to the
fiduciary personally, or payable to a third person and by him
transferred to the fiduciary, and is thereafter transferred by the
fiduciary, whether in payment of a personal debt of the fiduciary or
otherwise, the transferee is not bound to inquire whether the
fiduciary is committing a breach of his obligation as fiduciary in
transferring the instrument, and is not chargeable with notice that the
fiduciary is committing a breach of his obligation as fiduciary unless
he takes the instrument with actual knowledge of such breach or with
knowledge of such facts that his action in taking the instrument
amounts to bad faith.
(Formerly: Acts 1927, c.17, s.6.)
IC 30-2-4-7
Deposit in name of fiduciary
Sec. 7. If a deposit is made in a bank to the credit of a fiduciary as
such, the bank is authorized to pay the amount of the deposit or any
part thereof upon the check of the fiduciary, signed with the name in
which such deposit is entered, without being liable to the principal,
unless the bank pays the check with the actual knowledge that the
fiduciary is committing a breach of his obligation as fiduciary in
drawing the check or with knowledge 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 fact commits a breach of his
obligation as fiduciary in drawing or delivering the check.
(Formerly: Acts 1927, c.17, s.7.)
IC 30-2-4-8
Deposit in name of principal
Sec. 8. If a check is drawn upon the account of his principal in a
bank by a fiduciary who is empowered to draw checks upon his
principal's account, the bank is authorized to pay such check without
being liable to the principal, unless the bank pays the check with
actual knowledge that the fiduciary is committing a breach of his
obligation as fiduciary in drawing such check, or with knowledge 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 fact
commits a breach of his obligation as fiduciary in drawing or
delivering the check.
(Formerly: Acts 1927, c.17, s.8.)
IC 30-2-4-9
Deposit in fiduciary's personal account
Sec. 9. If a fiduciary makes a deposit in a bank to his personal
credit of checks drawn by him upon an account in his own name as
fiduciary, or of checks payable to him as fiduciary, or of checks
drawn by him upon an account in the name of his principal if he is
empowered to draw checks thereon, or of checks payable to his
principal and indorsed by him, if he is empowered to indorse such
checks, or if he otherwise makes a deposit of funds held by him as
fiduciary, the bank receiving such deposit is not bound to inquire
whether the fiduciary is committing thereby a breach of his
obligation as fiduciary; and the bank is authorized to pay the amount
of the deposit or any part thereof upon the personal check of the
fiduciary without being liable to the principal, unless the bank
receives the deposit or pays the check with actual knowledge that the
fiduciary is committing a breach of his obligation as fiduciary in
making such deposit or in drawing such check, or with knowledge of
such facts that its action in receiving the deposit or paying the check
amounts to bad faith.
(Formerly: Acts 1927, c.17, s.9.)
IC 30-2-4-10
Deposit in names of two or more trustees
Sec. 10. When a deposit is made in a bank in the name of two (2)
or more persons as trustees and a check is drawn upon the trust
account by any trustee or trustees authorized by the other trustee or
trustees to draw checks upon the trust account, neither the payee nor
other holder nor the bank is bound to inquire whether it is a breach
of trust to authorize such trustee or trustees to draw checks upon the
trust account, and is not liable unless the circumstances be such that
the action of the payee or other holder or the bank amounts to bad
faith.
(Formerly: Acts 1927, c.17, s.10.)
IC 30-2-4-11
Prior transactions
Sec. 11. The provisions of this chapter shall not apply to
transactions taking place prior to May 16, 1927.
(Formerly: Acts 1927, c.17, s.11.) As amended by Acts 1982,
P.L.171, SEC.93.
IC 30-2-4-12
Cases not provided for
Sec. 12. In any case not provided for in this chapter, the rules of
law and equity, including the law merchant and those rules of law
and equity relating to trusts, agency, negotiable instruments and
banking, shall continue to apply.
(Formerly: Acts 1927, c.17, s.12.) As amended by Acts 1982,
P.L.171, SEC.94.
IC 30-2-4-13
Uniformity of interpretation
Sec. 13. This chapter shall be so interpreted and construed as to
effectuate its general purpose to make uniform the law of those states
which enact it.
(Formerly: Acts 1927, c.17, s.13.) As amended by Acts 1982,
P.L.171, SEC.95.
IC 30-2-4-14
Short title
Sec. 14. This chapter may be cited as the Uniform Fiduciaries Act.
(Formerly: Acts 1927, c.17, s.14.) As amended by Acts 1982,
P.L.171, SEC.96.