Utah Code 75A-1-206. Checks drawn by or payable to a fiduciary
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If a fiduciary draws a check or other bill of exchange in the name of the fiduciary‘s principal and the fiduciary has authority to draw the check or other bill of exchange that is payable to the fiduciary or a person that transfers the payment to the fiduciary, the person to which the check or other bill of exchange is paid:
(1) is not bound to inquire as to whether the fiduciary is committing a breach of the fiduciary’s obligation in transferring the check or other bill of exchange to the fiduciary; and
Terms Used In Utah Code 75A-1-206
- 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.
- Person: means :
(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5- Principal: means a person to whom a fiduciary owes an obligation. See Utah Code 75A-1-201
(2) is not required to provide notice that the fiduciary is committing a breach of the fiduciary’s obligation, unless the person:(2)(a) takes the check or other bill of exchange with actual knowledge that the fiduciary is committing a breach of the fiduciary’s obligation; or(2)(b) knows that taking the check or other bill of exchange amounts to bad faith.