When a deposit is made in a bank in the name of two or more persons as fiduciaries and a check is drawn upon the trust account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such fiduciary or fiduciaries to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith.
Structure Code of Alabama
Title 19 - Fiduciaries and Trusts.
Chapter 1 - Uniform Fiduciaries Act.
Section 19-1-3 - Application of Payments Made to Fiduciaries.
Section 19-1-4 - Transfer of Negotiable Instrument by Fiduciary.
Section 19-1-5 - Check Drawn by Fiduciary Payable to Third Person.
Section 19-1-6 - Check Drawn by and Payable to Fiduciary.
Section 19-1-7 - Deposit in Name of Fiduciary as Such.
Section 19-1-8 - Deposit in Name of Principal.
Section 19-1-9 - Deposit in Fiduciary's Personal Account.
Section 19-1-10 - Deposit in Names of Two or More Fiduciaries.
Section 19-1-11 - Chapter Not Retroactive.