When a deposit is made in a bank in the name of two or more persons as trustees and a check is drawn upon the trust account by any trustee authorized by the other trustee 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 trustee 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.
Source: L. 23: p. 177, § 10. CSA: C. 67, § 10. CRS 53: § 57-1-10. C.R.S. 1963: § 57-1-9.
Cross references: For deposits by a fiduciary, see part 5 of this article.
Structure Colorado Code
Title 15 - Probate, Trusts, and Fiduciaries
§ 15-1-102. Legislative Declaration
§ 15-1-104. Prior Transactions
§ 15-1-105. Application of Payments to Fiduciary
§ 15-1-106. Transfer of Negotiable Instruments by Fiduciary
§ 15-1-107. Check Drawn by Fiduciary Payable to Third Person, Effect
§ 15-1-108. Check Drawn by and Payable to Fiduciary, Effect
§ 15-1-109. Deposit in Name of Fiduciary
§ 15-1-110. Check Drawn Upon Account of Principal by Fiduciary
§ 15-1-111. Deposits in Personal Account of Fiduciary
§ 15-1-112. Deposits in Name of Two or More Trustees
§ 15-1-112.5. Liability of a Fiduciary for Acts of Predecessor Fiduciary