§ 6A-3-307. Notice of breach of fiduciary duty.
(a) In this section:
(1) “Fiduciary” means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.
(2) “Represented person” means the principal, beneficiary, partnership, corporation, or other person to whom the duty stated in paragraph (1) is owed.
(b) If (i) an instrument is taken from a fiduciary for payment or collection or for value, (ii) the taker has knowledge of the fiduciary status of the fiduciary, and (iii) 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.
History of Section.P.L. 2000, ch. 238, § 3; P.L. 2000, ch. 421, § 3.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
Section 6A-3-301. - Person entitled to enforce instrument.
Section 6A-3-302. - Holder in due course.
Section 6A-3-303. - Value and consideration.
Section 6A-3-304. - Overdue instrument.
Section 6A-3-305. - Defenses and Claims in Recoupment.
Section 6A-3-306. - Claims to an instrument.
Section 6A-3-307. - Notice of breach of fiduciary duty.
Section 6A-3-308. - Proof of signatures and status as holder in due course.
Section 6A-3-309. - Enforcement of lost, destroyed, or stolen instrument.
Section 6A-3-310. - Effect of instrument on obligation for which taken.
Section 6A-3-311. - Accord and satisfaction by use of instrument.
Section 6A-3-312. - Lost, destroyed, or stolen cashier’s check, teller’s check, or certified check.