22-1-9 - Deposits in fiduciary's personal account. - Utah Statutes

22-1-9. Deposits in fiduciary's personal account.
If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by himupon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or ofchecks drawn by him upon an account in the name of his principal, if he is empowered to drawchecks thereon, or of checks payable to his principal and indorsed by him, if he is empowered toindorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, thebank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby abreach of his obligation as fiduciary; and the bank is authorized to pay the amount of the depositor any part thereof upon the personal check of the fiduciary without being liable to the principal,unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary iscommitting a breach of his obligation as fiduciary in making such deposit or in drawing suchcheck, or with knowledge of such facts that its action in receiving the deposit or paying the checkamounts to bad faith.

No Change Since 1953