§ 18-4-19 - Check drawn by and payable to fiduciary. - Rhode Island Statutes

SECTION 18-4-19

   § 18-4-19  Check drawn by and payable tofiduciary. – If a check or other bill of exchange is drawn by a fiduciary or in the name ofhis or her principal by a fiduciary empowered to draw the instrument in thename of his or her principal, payable to the fiduciary personally, or payableto a third person and by him or her transferred to the fiduciary, and isthereafter transferred by the fiduciary, whether in payment of a personal debtof the fiduciary or otherwise, the transferee is not bound to inquire whetherthe fiduciary is committing a breach of his or her obligation as fiduciary intransferring the instrument, and is not chargeable with notice that thefiduciary is committing a breach of his or her obligation as fiduciary, unlesshe or she takes the instrument with actual knowledge of the breach, or withknowledge of any facts that his or her action in taking the instrument amountsto bad faith.