Indiana § 30-2-4-8 Deposit in name of principal

Indiana Statutes

§ 30-2-4-8 — Deposit in name of principal

Indiana § 30-2-4-8

Art. 2GENERAL PROVISIONS

Ch. 4Uniform Fiduciaries Act

This text of Indiana § 30-2-4-8 (Deposit in name of principal) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 30-2-4-8 (2026).

Text

If a check is drawn upon the account of his
principal in a bank by a fiduciary who is empowered to draw checks
upon his principal's account, the bank is authorized to pay such check
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 such check, or with knowledge of
such facts that its action in paying the check amounts to bad faith. If,
however, such a 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.
Formerly: Acts 1927, c.17, s.8.

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If a check is drawn upon the account of his
principal in a bank by a fiduciary who is empowered to draw checks
upon his principal's account, the bank is authorized to pay such check
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 such check, or with knowledge of
such facts that its action in paying the check amounts to bad faith. If,
however, such a 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.
Formerly: Acts 1927, c.17, s.8.