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 others 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 the 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.
(Sept. 14, 1965, 79 Stat. 778, Pub. L. 89-183, § 1.)
1981 Ed., § 21-1709.
1973 Ed., § 21-1709.
Uniform Law: This section is based upon § 10 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