520.08 DEPOSIT IN NAME OF PRINCIPAL.
If a check is drawn upon the account of the principal in a bank by a fiduciary who is
empowered to draw checks upon the principal's account, the bank is authorized to pay such check
without being liable to the principal, unless the bank pays the check with actual knowledge that
the fiduciary is committing a breach of an obligation as fiduciary in drawing such check, or with
knowledge of such facts that its action in paying the check amounts to bad faith. If such a check is
payable to the drawee bank and is delivered to it in payment of or as security for a personal debt
of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of
an obligation as fiduciary in drawing or delivering the check.
History: 1945 c 202 s 8; 1986 c 444