§ 18-4-21. Deposit in fiduciary’s personal account.
If a fiduciary makes a deposit in a bank to his or her personal credit of checks drawn by him or her upon an account in his or her own name as fiduciary, or of checks payable to him or her as fiduciary, or of checks drawn by him or her upon an account in the name of his or her principal if he or she is empowered to draw checks on that account, or of checks payable to his or her principal and indorsed by him or her, if he or she is empowered to indorse these checks, or if he or she otherwise makes a deposit of funds held by him or her as fiduciary, the bank receiving the deposit is not bound to inquire whether the fiduciary is committing a breach of his or her obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part of it 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 his or her obligation as fiduciary in making the deposit or in drawing the check, or with knowledge of any facts that its action in receiving the deposit or paying the check amounts to bad faith.
History of Section.P.L. 1960, ch. 147, § 3; G.L. 1956, § 18-4-22; P.L. 1969, ch. 43, § 1; G.L. 1956, § 18-4-21.
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.