469.270. Check drawn by fiduciary payable to third person. - Missouri Statutes

Check drawn by fiduciary payable to third person.

469.270. If a check or other bill of exchange is drawn by a fiduciaryas such, or in the name of his principal by a fiduciary empowered to drawsuch instrument in the name of his principal, the payee is not bound toinquire whether the fiduciary is committing a breach of his obligation asfiduciary in drawing or delivering the instrument, and is not chargeablewith notice that the fiduciary is committing a breach of his obligation asfiduciary unless he takes the instrument with actual knowledge of suchbreach or with knowledge of such facts that this action in taking theinstrument amounts to bad faith. If, however, such instrument is payableto a personal creditor of the fiduciary and delivered to the creditor inpayment of or as security for a personal debt of the fiduciary to theactual knowledge of the creditor, or is drawn and delivered in anytransaction known by the payee to be for the personal benefit of thefiduciary, the creditor or other payee is liable to the principal if thefiduciary in fact commits a breach of his obligation as fiduciary indrawing or delivering the instrument.

(L. 1959 S.B. 121 § 5, A.L. 2004 H.B. 1511)

*Transferred 2004; formerly 456.270