6.2-897 - (Effective October 1, 2010) Bank need not inquire as to fiduciary funds deposited in fiduciary's personal account. - Virginia Statutes

§ 6.2-897. (Effective October 1, 2010) Bank need not inquire as to fiduciaryfunds deposited in fiduciary's personal account.

If any fiduciary or agent makes a deposit in a bank to his personal credit ofchecks drawn by him upon an account in his own name as fiduciary, or ofchecks drawn by him upon an account in the name of his principal, if he isempowered to draw checks thereon, or of checks payable to his principal andendorsed by him as fiduciary, the bank receiving the deposit:

1. Shall not be required to inquire whether the fiduciary is committingthereby a breach of his obligation as fiduciary; and

2. Is authorized to pay the amount of the deposit or any part thereof uponthe withdrawal by the fiduciary without being liable to the principal, unlessthe bank receives the deposit or pays the withdrawal with (i) actualknowledge that the fiduciary, in making such deposit or in making suchwithdrawal, is committing a breach of his obligation as fiduciary or (ii)knowledge of such facts that its action in receiving the deposit or payingthe check amounts to bad faith.

(Code 1950, § 6-57; 1966, c. 584, § 6.1-75; 2010, c. 794.)