19-1-5
Section 19-1-5 Check drawn by fiduciary payable to third person. 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, 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...
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19-1-4
Section 19-1-4 Transfer of negotiable instrument by fiduciary. If any negotiable instrument
payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable
instrument payable or indorsed to his principal is indorsed by a fiduciary, or if any negotiable
instrument payable or indorsed to his principal 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...
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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.)...
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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.)...
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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.)...
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7-3-307
Section 7-3-307 Notice of breach of fiduciary duty. (a) In this section: (1) "Fiduciary"
means an agent, trustee, partner, corporate officer or director, or other representative owing
a fiduciary duty with respect to an instrument. (2) "Represented person" means the
principal, beneficiary, partnership, corporation, or other person to whom the duty stated
in subdivision (1) is owed. (b) If (i) an instrument is taken from a fiduciary for payment
or collection or for value, (ii) the taker has knowledge of the fiduciary status of the fiduciary,
and (iii) the represented person makes a claim 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...
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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...
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26-1-2
Section 26-1-2 Durable power of attorney; appointment by court of guardian, etc., subsequent
to execution of durable power of attorney; effect of death of principal upon agency relationship;
affidavit by person exercising power of attorney as to lack of knowledge of revocation, etc.;
health care power of attorney. (a) A durable power of attorney is a power of attorney by which
a principal designates another his or her attorney in fact or agent in writing and the writing
contains the words "This power of attorney shall not be affected by disability, incompetency,
or incapacity of the principal" or "This power of attorney shall become effective
upon the disability, incompetency, or incapacity of the principal" or similar words showing
the intent of the principal that the authority conferred shall be exercisable notwithstanding
the principal's subsequent disability, incompetency, or incapacity. (b) All acts done by an
attorney in fact pursuant to a durable power of attorney during any...
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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...
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26-1A-111
Section 26-1A-111 Co-agents and successor agents. (a) A principal may designate two or more
persons to act as co-agents. Unless the power of attorney otherwise provides, each co-agent
may exercise its authority independently. (b) A principal may designate one or more successor
agents to act if an agent resigns, dies, becomes incapacitated, is not qualified to serve,
or declines to serve. A principal may grant authority to designate one or more successor agents
to an agent or other person designated by name, office, or function. Unless the power of attorney
otherwise provides, a successor agent: (1) has the same authority as that granted to the original
agent; and (2) may not act until all predecessor agents have resigned, died, become incapacitated,
are no longer qualified to serve, or have declined to serve. (c) Except as otherwise provided
in the power of attorney and subsection (d), an agent that does not participate in or conceal
a breach of fiduciary duty committed by another...
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