§ 3307. Notice of breach of fiduciary duty.
(a) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Fiduciary." An agent, trustee, partner, corporate officer or director or other representative owing a fiduciary duty with respect to an instrument. "Represented person." The principal, beneficiary, partnership, corporation or other person to whom the duty stated under the definition of fiduciary is owed.
(b) General rule.--If an instrument is taken from a fiduciary for payment or collection or for value, the taker has knowledge of the fiduciary status of the fiduciary and the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach of fiduciary duty, the following rules apply:
(1) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the represented person.
(2) In the case of an instrument payable to the represented person or the fiduciary as such, the taker has notice of the breach of fiduciary duty if the instrument is:
(i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary;
(ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary; or
(iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.
(3) If an instrument is issued by the represented person or the fiduciary as such and made payable to the fiduciary personally, the taker does not have notice of the breach of fiduciary duty unless the taker knows of the breach of fiduciary duty.
(4) If an instrument is issued by the represented person or the fiduciary as such to the taker as payee, the taker has notice of the breach of fiduciary duty if the instrument is:
(i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary;
(ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary; or
(iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.
Cross References. Section 3307 is referred to in section 3206 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 33 - Enforcement of Instruments
Section 3301 - Person entitled to enforce instrument
Section 3302 - Holder in due course
Section 3303 - Value and consideration
Section 3304 - Overdue instrument
Section 3305 - Defenses and claims in recoupment
Section 3306 - Claims to an instrument
Section 3307 - Notice of breach of fiduciary duty
Section 3308 - Proof of signatures and status as holder in due course
Section 3309 - Enforcement of lost, destroyed or stolen instrument
Section 3310 - Effect of instrument on obligation for which taken
Section 3311 - Accord and satisfaction by use of instrument
Section 3312 - Lost, destroyed or stolen cashier's check, teller's check or certified check