If a person who is a fiduciary makes a deposit in a bank to the person's personal credit of checks drawn by the person upon an account in the person's name as fiduciary, or of checks payable to the person as fiduciary, or of checks drawn by the person upon an account in the name of the principal if the person is empowered to draw checks thereon, or of checks payable to the principal and endorsed by the person, if empowered to endorse such checks, or if the person otherwise makes a deposit of funds held as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of an obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of an obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
1945 c 202 s 9; 1986 c 444
Structure Minnesota Statutes
Chapters 520 - 523 — Fiduciaries; Powers Of Attorney
Chapter 520 — Fiduciaries; Uniform Acts
Section 520.02 — Application Of Payments Made To Fiduciaries.
Section 520.07 — Deposit In Name Of Fiduciary As Such.
Section 520.08 — Deposit In Name Of Principal.
Section 520.09 — Deposit In Fiduciary's Personal Account.
Section 520.10 — Deposit In Names Of Two Or More Trustees.
Section 520.12 — Cases Not Provided For In Sections 520.01 To 520.13.
Section 520.13 — Citation, Uniform Fiduciaries Act.
Section 520.22 — Registration In The Name Of A Fiduciary.
Section 520.23 — Assignment By A Fiduciary.
Section 520.24 — Evidence Of Appointment Or Incumbency.
Section 520.25 — Adverse Claims.
Section 520.26 — Nonliability Of Corporation And Transfer Agent.
Section 520.27 — Nonliability Of Third Persons.
Section 520.28 — Territorial Application.
Section 520.29 — Tax Obligations.
Section 520.30 — Uniformity Of Interpretation.
Section 520.32 — Deposit Of Securities In Central Depository.