6.1-194.60 - (Repealed effective October 1, 2010) Savings institution need not inquire as to fiduciary funds deposited in fiduciary's personal account. - Virginia Statutes

§ 6.1-194.60. (Repealed effective October 1, 2010) Savings institution neednot inquire as to fiduciary funds deposited in fiduciary's personal account.

If any fiduciary or agent makes a deposit in a savings institution to hispersonal credit of checks drawn by him upon an account in his own name asfiduciary, or of checks drawn by him upon an account in the name of hisprincipal, if he is empowered to draw checks thereto, or of checks payable tohis principal and endorsed by him as fiduciary, the institution receivingsuch deposit shall not be bound to inquire whether the fiduciary iscommitting thereby a breach of his obligation as fiduciary; and theinstitution is authorized to pay the amount of the deposit or any partthereof upon the withdrawal by the fiduciary without being liable to theprincipal, unless the institution receives the deposit or pays the withdrawalwith actual knowledge that the fiduciary, in making such deposit or in makingsuch withdrawal, is committing a breach of his obligation as fiduciary, orwith knowledge of such facts that its action in receiving the deposit orpaying the withdrawal amounts to bad faith.

(Code 1950, § 6.1-195.27:1; 1980, c. 329; 1985, c. 425.)