32-7. Check drawn by and payable to fiduciary.
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 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 obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. (1923, c. 85, s. 6; C.S., s. 1864(j).)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 1 - Uniform Fiduciaries Act.
§ 32-3 - Application of payments made to fiduciaries.
§ 32-5 - Transfer of negotiable instrument by fiduciary.
§ 32-6 - Check drawn by fiduciary payable to third person.
§ 32-7 - Check drawn by and payable to fiduciary.
§ 32-8 - Deposit in name of fiduciary as such.
§ 32-9 - Deposit in name of principal.
§ 32-10 - Deposit in fiduciary's personal account.
§ 32-11 - Deposit in names of two or more trustees.