§ 18-4-19. Check drawn by and payable to fiduciary.
If a check or other bill of exchange is drawn by a fiduciary or in the name of his or her principal by a fiduciary empowered to draw the instrument in the name of his or her principal, payable to the fiduciary personally, or payable to a third person and by him or her 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 or her obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his or her obligation as fiduciary, unless he or she takes the instrument with actual knowledge of the breach, or with knowledge of any facts that his or her action in taking the instrument amounts to bad faith.
History of Section.P.L. 1960, ch. 147, § 3.
Structure Rhode Island General Laws
Chapter 18-4 - Powers of Fiduciaries
Section 18-4-1. - Application of cy pres doctrine.
Section 18-4-2. - Powers of trustees.
Section 18-4-3. - Arbitration.
Section 18-4-4. - Power of sale.
Section 18-4-5. - Effect of trustee’s receipt.
Section 18-4-6. - Conveyance by infant trustee.
Section 18-4-7. - Disposition of money payable to infant trustee.
Section 18-4-8. - Settlement of debts and claims — Assent of court.
Section 18-4-9. - Powers of surviving fiduciaries.
Section 18-4-10. - Management powers exercised with court approval.
Section 18-4-11. - Purposes for which borrowing authorized.
Section 18-4-12. - Leases authorized.
Section 18-4-13. - Parties to management proceedings — Guardians ad litem — Costs.
Section 18-4-14. - Binding effect of authorized transactions.
Section 18-4-15. - Definitions.
Section 18-4-16. - Payments or transfers to fiduciaries — Effect of misapplication by fiduciary.
Section 18-4-17. - Transfer of negotiable instrument by fiduciary.
Section 18-4-18. - Check drawn by fiduciary payable to third person.
Section 18-4-19. - Check drawn by and payable to fiduciary.
Section 18-4-20. - Deposit in name of fiduciary.
Section 18-4-21. - Deposit in fiduciary’s personal account.
Section 18-4-22. - Administration of trusts.
Section 18-4-23. - Charitable remainder trusts.
Section 18-4-24. - Termination of small trusts.
Section 18-4-25. - Consolidation or division of trusts.
Section 18-4-26. - Powers of fiduciaries in connection with environmental laws.
Section 18-4-27. - Validity of trusts.
Section 18-4-28. - Trustee’s power to adjust.
Section 18-4-29. - Total return unitrusts — Alternative definition of income.
Section 18-4-30. - Representation by person having substantially identical interest.