19-1-6
Section 19-1-6 Check drawn by and payable to fiduciary. If a check or other bill of exchange
is drawn by a fiduciary as such or in the name of his principal by a fiduciary empowered to
draw such instrument in the name of his principal, payable to the fiduciary personally, or
payable to a third person and by him transferred to the fiduciary, and is thereafter transferred
by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise,
the transferee is not bound to inquire whether the fiduciary is committing a breach of his
obligation as fiduciary in transferring the instrument, and is not chargeable with notice
that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the
instrument with actual knowledge of such breach or with knowledge of such facts that his action
in taking the instrument amounts to bad faith. (Acts 1943, No. 557, p. 544, §6.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-6.htm - 1K - Match Info - Similar pages

19-1-5
instrument in the name of his principal, the payee is not bound to inquire whether the fiduciary
is committing a breach of his obligation as fiduciary in drawing or delivering the instrument,
and is not chargeable with notice that the fiduciary is committing a breach of his obligation
as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge
of such facts that his action in taking the instrument amounts to bad faith. If, however,
such instrument is payable to a personal creditor of the fiduciary and delivered to
the creditor in payment of or as security for a personal debt of the fiduciary to the
actual knowledge of the creditor, or is drawn and delivered in any transaction known by the
payee to be for the personal benefit of the fiduciary, the creditor or other payee
is liable to the principal if the fiduciary in fact commits a breach of his obligation as
fiduciary in drawing or delivering the instrument. (Acts 1943, No. 557, p. 544, §5.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-5.htm - 1K - Match Info - Similar pages

19-1-4
is indorsed by a fiduciary empowered to indorse such instrument on behalf of his principal,
the indorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation
as fiduciary in indorsing or delivering the instrument, and is not chargeable with notice
that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the
instrument with actual knowledge of such breach or with knowledge of such facts that his action
in taking the instrument amounts to bad faith. If, however, such instrument is transferred
by the fiduciary in payment of or as security for a personal debt of the fiduciary
to the actual knowledge of the creditor, or is transferred in any transaction known by the
transferee to be for the personal benefit of the fiduciary, the creditor or other transferee
is liable to the principal if the fiduciary in fact commits a breach of his obligation as
fiduciary in transferring the instrument. (Acts 1943, No. 557, p. 544, §4.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-4.htm - 1K - Match Info - Similar pages

7-3-307
to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach
of fiduciary duty, the following rules apply: (1) Notice of breach of fiduciary duty by the
fiduciary is notice of the claim of the represented person. (2) In the case of an instrument
payable to the represented person or the fiduciary as such, the taker has notice of the breach
of fiduciary duty if the instrument is (i) taken in payment of or as security for a debt known
by the taker to be the personal debt of the fiduciary, or (ii) taken in a transaction
known by the taker to be for the personal benefit of the fiduciary. (3) If an instrument
is issued by the represented person or the fiduciary as such, and made payable to the fiduciary
personally, the taker does not have notice of the breach of fiduciary duty unless the taker
knows of the breach of fiduciary duty. (4) If an instrument is issued by the represented person
or the fiduciary as such, to the taker as payee, the taker has...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-3-307.htm - 2K - Match Info - Similar pages

19-1-8
Section 19-1-8 Deposit in name of principal. 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. (Acts 1943, No. 557, p. 544, §8.)...

alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-8.htm - 1K - Match Info - Similar pages

19-1-7
Section 19-1-7 Deposit in name of fiduciary as such. If a deposit is made in a bank to the
credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or
any part thereof upon the check of the fiduciary, signed with the name in which such deposit
is entered 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 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. (Acts 1943, No. 557, p. 544, §7.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-7.htm - 1K - Match Info - Similar pages

19-1-9
Section 19-1-9 Deposit in fiduciary's personal account. 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 thereon, 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 thereby a breach of his
obligation as fiduciary; 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...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-1-9.htm - 1K - Match Info - Similar pages

7-3-206
Section 7-3-206 Restrictive indorsement. (a) An indorsement limiting payment to a particular
person or otherwise prohibiting further transfer or negotiation of the instrument is not effective
to prevent further transfer or negotiation of the instrument. (b) An indorsement stating a
condition to the right of the indorsee to receive payment does not affect the right of the
indorsee to enforce the instrument. A person paying the instrument or taking it for value
or collection may disregard the condition, and the rights and liabilities of that person are
not affected by whether the condition has been fulfilled. (c) If an instrument bears an indorsement
(i) described in Section 7-4-201(b), or (ii) in blank or to a particular bank using the words
"for deposit," "for collection," or other words indicating a purpose of
having the instrument collected by a bank for the indorser or for a particular account, the
following rules apply: (1) A person, other than a bank, who purchases the instrument...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-3-206.htm - 3K - Match Info - Similar pages

19-3A-102
chapter, the following terms are defined as follows: (1) ACCOUNTING PERIOD. A calendar year
unless another 12-month period is selected by a fiduciary. The term includes a portion of
a calendar year or other 12-month period that begins when an income interest begins or ends
when an income interest ends. (2) BENEFICIARY. Includes, in the case of a decedent's estate,
an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder
beneficiary. (3) FIDUCIARY. A personal representative or a trustee. The term includes
an executor, administrator, successor personal representative, special administrator,
and a person performing substantially the same function. (4) INCOME. Money or property that
a fiduciary receives as current return from a principal asset. The term also includes a portion
of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided
in Article 4. (5) INCOME BENEFICIARY. A person to whom net income of a trust is...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19-3A-102.htm - 4K - Match Info - Similar pages

7-3-417
Section 7-3-417 Presentment warranties. (a) If an unaccepted draft is presented to the drawee
for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining
payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft,
at the time of transfer, warrant to the drawee making payment or accepting the draft in good
faith that: (1) The warrantor is, or was, at the time the warrantor transferred the draft,
a person entitled to enforce the draft or authorized to obtain payment or acceptance of the
draft on behalf of a person entitled to enforce the draft; (2) The draft has not been altered;
and (3) The warrantor has no knowledge that the signature of the drawer of the draft is unauthorized.
(b) A drawee making payment may recover from any warrantor damages for breach of warranty
equal to the amount paid by the drawee less the amount the drawee received or is entitled
to receive from the drawer because of the payment. In addition,...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/7-3-417.htm - 3K - Match Info - Similar pages