If a check or other bill of exchange is drawn by a fiduciary or in the name of the fiduciary’s principal by a fiduciary empowered to draw the instrument in the name of the principal, payable to the fiduciary personally, or payable to a third person and transferred by the third person 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 the obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the transferee takes the instrument with actual knowledge of the breach or with knowledge of the facts that the action of the transferee in taking the instrument amounts to bad faith.
Structure Maryland Statutes
Subtitle 2 - Maryland Uniform Fiduciaries Act
Section 15-202 - Application of Payments Made to Fiduciaries
Section 15-203 - Transfer of Negotiable Instrument by Fiduciary
Section 15-204 - Check Drawn by Fiduciary Payable to Third Person
Section 15-205 - Check Drawn by and Payable to Fiduciary
Section 15-206 - Deposit in Name of Fiduciary as Such
Section 15-207 - Deposit in Name of Principal
Section 15-208 - Deposit in Personal Account of Fiduciary
Section 15-209 - Cases Not Provided for in Article