469.300. Deposit in name of principal.
Deposit in name of principal.
469.300. If a check is drawn upon the account of his principal in abank by a fiduciary who is empowered to draw checks upon his principal'saccount, the bank is authorized to pay such check without being liable tothe principal, unless the bank pays the check with actual knowledge thatthe fiduciary is committing a breach of his obligation as fiduciary indrawing such check, or with knowledge of such facts that its action inpaying the check amounts to bad faith. If, however, such a check ispayable to the drawee bank and is delivered to it in payment of or assecurity for a personal debt of the fiduciary to it, the bank is liable tothe principal if the fiduciary in fact commits a breach of his obligationas fiduciary in drawing or delivering the check.
(L. 1959 S.B. 121 § 8, A.L. 2004 H.B. 1511)*Transferred 2004; formerly 456.300