Section 15-208 - Deposit in personal account of fiduciary.
§ 15-208. Deposit in personal account of fiduciary.
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 the checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving the deposit may not be 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 the deposit or in drawing the check, or with knowledge of the facts that its action in receiving the deposit or paying the check amounts to bad faith.
[An. Code 1957, art. 37A, § 9; 1974, ch. 11, § 2.]