When a deposit is made in a bank or savings institution in the name of two (2) or more persons as fiduciaries and a check is drawn upon the fiduciary account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries to draw checks upon the fiduciary account, neither the payee nor other holder nor the bank or savings institution is bound to inquire whether it is a breach of trust to authorize such fiduciary or fiduciaries to draw checks upon the fiduciary account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank or savings institution amounts to bad faith.
Structure 2021 Tennessee Code
Title 35 - Fiduciaries and Trust Estates
Chapter 2 - Uniform Fiduciaries Act
§ 35-2-103. Application of Payments Made to Fiduciaries — Validity of Right or Title Acquired
§ 35-2-104. Transfer of Negotiable Instrument by Fiduciary
§ 35-2-105. Check Drawn by Fiduciary Payable to Third Person
§ 35-2-107. Deposit in Name of Fiduciary as Such — Drawing Check
§ 35-2-108. Deposit in Name of Principal — Drawing Checks
§ 35-2-109. Deposit in Fiduciary's Personal Account — Drawing Checks
§ 35-2-110. Deposit in Names of Two or More Trustees — Drawing Checks