District of Columbia § 21-1707 Deposit in name of principal; check drawn thereon by fiduciary; check payable to drawee bank.

District of Columbia Statutes

§ 21-1707 — Deposit in name of principal; check drawn thereon by fiduciary; check payable to drawee bank.

District of Columbia § 21-1707

Title 21Fiduciary Relations and Persons with Mental Illness. [Enacted title]

Ch. 17General Fiduciary Relations.

Subch. IUniform Fiduciaries Act.

This text of District of Columbia § 21-1707 (Deposit in name of principal; check drawn thereon by fiduciary; check payable to drawee bank.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

D.C. Code § 21-1707 (2026).

Text

If a check is drawn upon a bank account of his principal by a fiduciary who is empowered to draw checks upon his principal’s account, the bank is authorized to pay the checks without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing the check, or with knowledge of facts that its action in paying the check amounts to bad faith. If, however, the check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.

Free access — add to your briefcase to read the full text and ask questions with AI

If a check is drawn upon a bank account of his principal by a fiduciary who is empowered to draw checks upon his principal’s account, the bank is authorized to pay the checks without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing the check, or with knowledge of facts that its action in paying the check amounts to bad faith. If, however, the check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.