Utah § 75A-1-206 Checks drawn by or payable to a fiduciary.

Utah Statutes

§ 75A-1-206 — Checks drawn by or payable to a fiduciary.

Utah § 75A-1-206

Title 75AFiduciaries

Part 75A-1-2Payments and Deposits by Fiduciaries

This text of Utah § 75A-1-206 (Checks drawn by or payable to a fiduciary.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 75A-1-206 (2026).

Text

If a fiduciary draws a check or other bill of exchange in the name of the fiduciary's principal and the fiduciary has authority to draw the check or other bill of exchange that is payable to the fiduciary or a person that transfers the payment to the fiduciary, the person to which the check or other bill of exchange is paid:

(1)is not bound to inquire as to whether the fiduciary is committing a breach of the fiduciary's obligation in transferring the check or other bill of exchange to the fiduciary; and

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

(2)(a) takes the check or other bill of exchange with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation; or

(2)(b) knows

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If a fiduciary draws a check or other bill of exchange in the name of the fiduciary's principal and the fiduciary has authority to draw the check or other bill of exchange that is payable to the fiduciary or a person that transfers the payment to the fiduciary, the person to which the check or other bill of exchange is paid:
(1) is not bound to inquire as to whether the fiduciary is committing a breach of the fiduciary's obligation in transferring the check or other bill of exchange to the fiduciary; and
(2) is not required to provide notice that the fiduciary is committing a breach of the fiduciary's obligation, unless the person:
(2)(a) takes the check or other bill of exchange with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation; or
(2)(b) knows that taking the check or other bill of exchange amounts to bad faith.