2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 33 - Enforcement of Instruments
Section 3307 - Notice of breach of fiduciary duty

     § 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.