Utah Code 75A-1-209. Deposits in a fiduciary’s personal account
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If a principal authorizes a fiduciary to write or endorse a check for the principal, and the fiduciary writes a check payable to the fiduciary and deposits the check in a bank into the fiduciary’s personal account:
(1) the bank is not bound to inquire whether a fiduciary is committing a breach of the fiduciary’s obligation to a principal; and
Terms Used In Utah Code 75A-1-209
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: means :(1)(a) a trustee under any trust, expressed, implied, resulting or constructive;(1)(b) an executor;(1)(c) an administrator;(1)(d) a guardian;(1)(e) a conservator;(1)(f) a curator;(1)(g) a receiver;(1)(h) a trustee in bankruptcy;(1)(i) an assignee for the benefit of creditors;(1)(j) a partner;(1)(k) an agent;(1)(l) an officer of a corporation, public or private;(1)(m) a public officer; or(1)(nn) any other person acting in a fiduciary capacity for any person, trust, or estate. See Utah Code 75A-1-201
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Principal: means a person to whom a fiduciary owes an obligation. See Utah Code 75A-1-201
(2) the bank is authorized to pay the amount of the deposit or any part of a personal check of the fiduciary without being liable to the principal unless:(2)(a) the bank deposits the check for a fiduciary with actual knowledge that the fiduciary is committing a breach of the fiduciary’s obligation in depositing the check; or(2)(b) the bank knows that depositing the check for the fiduciary amounts to bad faith.