§ 15-1-108 — Check drawn by and payable to fiduciary, effect

Colorado § 15-1-108

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Fiduciary

Text

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.

Legislative History

Source: L. 23: p. 175, � 6. CSA: C. 67, � 6. CRS 53: � 57-1-6. C.R.S. 1963: � 57-1-5.