6.2-1369 - (Effective October 1, 2010) Credit union need not inquire as to fiduciary funds used to purchase shares in fiduciary's personal account.
§ 6.2-1369. (Effective October 1, 2010) Credit union need not inquire as tofiduciary funds used to purchase shares in fiduciary's personal account.
A. If any fiduciary or agent purchases shares in a credit union in his ownname (i) with share drafts or other instruments drawn by him upon an accountin his own name as fiduciary, (ii) with share drafts or other instrumentsdrawn by him upon an account in the name of his principal, if he is empoweredto draw share drafts or other instruments thereto, or (iii) with share draftsor other instruments payable to his principal and endorsed by him asfiduciary, the credit union issuing such shares shall not be bound to inquirewhether the fiduciary is committing thereby a breach of his obligation asfiduciary.
B. The credit union is authorized to pay the amount of the shares issued orany part thereof upon the withdrawal by the fiduciary without being liable tothe principal, unless the credit union receives payment for the shares orpays the withdrawal (i) with the actual knowledge that the fiduciary, inpurchasing such shares or in making such withdrawal, is committing a breachof his obligation as a fiduciary, or (ii) with knowledge of such facts thatits action in issuing the shares or paying the withdrawal amounts to badfaith.
(2000, c. 744, § 6.1-225.50:2; 2010, c. 794.)