2005 Idaho Code - 68-305 — CHECK DRAWN BY FIDUCIARY PAYABLE TO THIRD PERSON

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 3
                           UNIFORM FIDUCIARIES LAW
    68-305.  CHECK DRAWN BY FIDUCIARY PAYABLE TO THIRD PERSON. 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, the payee is not bound to inquire whether the fiduciary is
committing a breach of his obligation as fiduciary in drawing or delivering
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. If,
however, such instrument is payable to a personal creditor of the fiduciary
and delivered to the creditor in payment of or as security for a personal debt
of the fiduciary to the actual knowledge of the creditor, or is drawn and
delivered in any transaction known by the payee to be for the personal benefit
of the fiduciary, the creditor or other payee is liable to the principal if
the fiduciary in fact commits a breach of his obligation as fiduciary in
drawing or delivering the instrument.