2006 Code of Virginia § 6.1-75 - Bank need not inquire as to fiduciary funds deposited in fiduciary\'s personal account

6.1-75. Bank need not inquire as to fiduciary funds deposited infiduciary's personal account.

If any fiduciary or agent makes a deposit in a bank to his personal credit ofchecks drawn by him upon an account in his own name as fiduciary, or ofchecks drawn by him upon an account in the name of his principal, if he isempowered to draw checks thereon, or of checks payable to his principal andendorsed by him as fiduciary, the bank receiving such deposit shall not bebound to inquire whether the fiduciary is committing thereby a breach of hisobligation as fiduciary; and the bank is authorized to pay the amount of thedeposit or any part thereof upon the personal check of the fiduciary withoutbeing liable to the principal, unless the bank receives the deposit or paysthe check with actual knowledge that the fiduciary, in making such deposit orin drawing such check, is committing a breach of his obligation as fiduciary,or with knowledge of such facts that its action in receiving the deposit orpaying the check amounts to bad faith.

(Code 1950, 6-57; 1966, c. 584.)