If a check or other bill of exchange is drawn by a fiduciary as such or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, payable to the fiduciary personally, or payable to a third person and by him transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument 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.