§ 18-4-21 - Deposit in fiduciary's personal account. - Rhode Island Statutes

SECTION 18-4-21

   § 18-4-21  Deposit in fiduciary's personalaccount. – If a fiduciary makes a deposit in a bank to his or her personal credit ofchecks drawn by him or her upon an account in his or her own name as fiduciary,or of checks payable to him or her as fiduciary, or of checks drawn by him orher upon an account in the name of his or her principal if he or she isempowered to draw checks on that account, or of checks payable to his or herprincipal and indorsed by him or her, if he or she is empowered to indorsethese checks, or if he or she otherwise makes a deposit of funds held by him orher as fiduciary, the bank receiving the deposit is not bound to inquirewhether the fiduciary is committing a breach of his or her obligation asfiduciary; and the bank is authorized to pay the amount of the deposit or anypart of it upon the personal check of the fiduciary without being liable to theprincipal, unless the bank receives the deposit or pays the check with actualknowledge that the fiduciary is committing a breach of his or her obligation asfiduciary in making the deposit or in drawing the check, or with knowledge ofany facts that its action in receiving the deposit or paying the check amountsto bad faith.