469.260. Transfer of negotiable instrument by fiduciary. - Missouri Statutes

Transfer of negotiable instrument by fiduciary.

469.260. If any negotiable instrument payable or endorsed to afiduciary as such is endorsed by the fiduciary, or if any negotiableinstrument payable or endorsed to his principal is endorsed by a fiduciaryempowered to endorse such instrument on behalf of his principal, theendorsee is not bound to inquire whether the fiduciary is committing abreach of his obligation as fiduciary in endorsing or delivering theinstrument, and is not chargeable with notice that the fiduciary iscommitting a breach of his obligation as fiduciary unless he takes theinstrument with actual knowledge of such breach or with knowledge of suchfacts that his action in taking the instrument amounts to bad faith. If,however, such instrument is transferred by the fiduciary in payment of oras security for a personal debt of the fiduciary to the actual knowledge ofthe creditor, or is transferred in any transaction known by the transfereeto be for the personal benefit of the fiduciary, the creditor or othertransferee is liable to the principal if the fiduciary in fact commits abreach of his obligation as fiduciary in transferring the instrument.

(L. 1959 S.B. 121 § 4, A.L. 2004 H.B. 1511)

*Transferred 2004; formerly 456.260