6.1-225.50:2 - (Repealed effective October 1, 2010) Credit union need not inquire as to fiduciary funds used to pu... - Virginia Statutes

§ 6.1-225.50:2. (Repealed effective October 1, 2010) Credit union need notinquire as to fiduciary funds used to purchase shares in fiduciary's personalaccount.

If any fiduciary or agent purchases shares in a credit union in his own name(i) with share drafts or other instruments drawn by him upon an account inhis own name as fiduciary, (ii) with share drafts or other instruments drawnby him upon an account in the name of his principal, if he is empowered todraw share drafts or other instruments thereto, or (iii) with share drafts orother instruments payable to his principal and endorsed by him as fiduciary,the credit union issuing such shares shall not be bound to inquire whetherthe fiduciary is committing thereby a breach of his obligation as fiduciary.The credit union is authorized to pay the amount of the shares issued or anypart thereof upon the withdrawal by the fiduciary without being liable to theprincipal, unless the credit union receives payment for the shares or paysthe withdrawal with the actual knowledge that the fiduciary, in purchasingsuch shares or in making such withdrawal, is committing a breach of hisobligation as a fiduciary, or with knowledge of such facts that its action inissuing the shares or paying the withdrawal amounts to bad faith.

(2000, c. 744.)