3B:14-55 - Check drawn by and payable to fiduciary - New Jersey Statutes

3B:14-55.  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 the 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 the breach or with knowledge of facts that  his action in taking the instrument amounts to bad faith.

     L.1981, c. 405, s. 3B:14-55, eff. May 1, 1982.