Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
520.07 DEPOSIT IN NAME OF FIDUCIARY AS SUCH.
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay
the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name
in which such deposit is entered, 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 the 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 7; 1986 c 444
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay
the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name
in which such deposit is entered, 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 the 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 7; 1986 c 444
Official Publication of the State of Minnesota
Revisor of Statutes