Sec. 10. When a deposit is made in a bank in the name of two (2) or more persons as trustees and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees 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 or trustees 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.
Formerly: Acts 1927, c.17, s.10.
Structure Indiana Code
Title 30. Trusts and Fiduciaries
Chapter 4. Uniform Fiduciaries Act
30-2-4-2. Application of Payments Made to Fiduciaries
30-2-4-3. Registration or Transfer of Securities Held by Fiduciaries
30-2-4-4. Transfer of Negotiable Instrument by Fiduciary
30-2-4-5. Check Drawn by Fiduciary Payable to Third Person
30-2-4-6. Check Drawn by and Payable to Fiduciary
30-2-4-7. Deposit in Name of Fiduciary
30-2-4-8. Deposit in Name of Principal
30-2-4-9. Deposit in Fiduciary's Personal Account
30-2-4-10. Deposit in Names of Two or More Trustees
30-2-4-12. Cases Not Provided For