If a principal authorizes a fiduciary to write or endorse a check for the principal, and the fiduciary writes a check payable to the fiduciary and deposits the check in a bank into the fiduciary's personal account: (1) the bank is not bound to inquire whether a fiduciary is committing a breach of the fiduciary's obligation to a principal; and (2) the bank is authorized to pay the amount of the deposit or any part of a personal check of the fiduciary without being liable to the principal unless: (a) the bank deposits the check for a fiduciary with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation in depositing the check; or (b) the bank knows that depositing the check for the fiduciary amounts to bad faith. Renumbered and Amended by Chapter 364, 2024 General Session
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