Utah § 75A-1-204 Transfer of negotiable instruments by a fiduciary.

Utah Statutes

§ 75A-1-204 — Transfer of negotiable instruments by a fiduciary.

Utah·Title 75A Fiduciaries·Part 75A-1-2 Payments and Deposits by Fiduciaries

(1)If a fiduciary endorses a negotiable instrument that is payable or endorsed to the fiduciary or the fiduciary's principal, and the fiduciary has authority to endorse the negotiable instrument on behalf of the principal, the person that receives the negotiable instrument through the endorsement:

(1)(a) is not bound to inquire as to whether the fiduciary is committing a breach of the fiduciary's obligation in endorsing or delivering the negotiable instrument; and

(1)(b) is not required to provide notice that the fiduciary is committing a breach of the fiduciary's obligation, unless the person:

(1)(b)(i) takes the negotiable instrument with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation; or

(1)(b)(ii) knows that taking the negotiable instrument am

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(1) If a fiduciary endorses a negotiable instrument that is payable or endorsed to the fiduciary or the fiduciary's principal, and the fiduciary has authority to endorse the negotiable instrument on behalf of the principal, the person that receives the negotiable instrument through the endorsement:
(1)(a) is not bound to inquire as to whether the fiduciary is committing a breach of the fiduciary's obligation in endorsing or delivering the negotiable instrument; and
(1)(b) is not required to provide notice that the fiduciary is committing a breach of the fiduciary's obligation, unless the person:
(1)(b)(i) takes the negotiable instrument with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation; or
(1)(b)(ii) knows that taking the negotiable instrument amounts to bad faith.
(2) Notwithstanding Subsection (1), a person is liable to a principal if:
(2)(a) the fiduciary transfers a negotiable instrument to the person and the person knows that the fiduciary is transferring the negotiable instrument:
(2)(a)(i) as payment of, or as a security for, a personal debt of the fiduciary; or
(2)(a)(ii) for the personal benefit of the fiduciary; and
(2)(b) the fiduciary commits a breach of the fiduciary's obligation in transferring the negotiable instrument to the person.

Utah § 75A-1-204 (Transfer of negotiable instruments by a fiduciary.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.