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 an 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 obligations as fiduciary unless he takes the instrument with actual knowledge of the breach or with knowledge of facts that his action in taking the instrument amounts to bad faith.
(Sept. 14, 1965, 79 Stat. 777, Pub. L. 89-183, § 1.)
1981 Ed., § 21-1705.
1973 Ed., § 21-1705.
Uniform Law: This section is based upon § 6 of the Uniform Fiduciaries Act.
Structure District of Columbia Code
Title 21 - Fiduciary Relations and Persons with Mental Illness. [Enacted title]
Chapter 17 - General Fiduciary Relations
Subchapter I - Uniform Fiduciaries Act
§ 21–1702. Application of payment made to fiduciaries
§ 21–1703. Transfer of negotiable instruments by fiduciary
§ 21–1704. Check drawn by fiduciary payable to third person
§ 21–1705. Check drawn by and payable to fiduciary
§ 21–1706. Deposit in name of fiduciary as such
§ 21–1708. Conforming amendment
§ 21–1709. Deposit in names of two or more trustees
§ 21–1710. Law not retroactive