§ 15-1-111 — Deposits 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 on that account, 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 a breach of his obligation as fiduciary by
that action; 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.

Legislative History

Source: L. 23: p. 177, � 9. CSA: C. 67, � 9. CRS 53: � 57-1-9. C.R.S. 1963: � 57-1-8.