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This entry was published on 2014-09-22
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SECTION 9
Checks drawn against corporate funds or payable to corporations; no notice of defense against or claim to check
Banking (BNK) CHAPTER 2, ARTICLE 1
§ 9. Checks drawn against corporate funds or payable to corporations;
no notice of defense against or claim to check. Notwithstanding section
3-304 of the uniform commercial code, the drawing of a check by an
officer or agent of a corporation against the account of, or in the name
of the corporation, whether the check is drawn against an account in the
name of the corporation, or in the name of such officer or agent of the
corporation as such, to himself as payee, or the endorsement of a check
in the name of the corporation, to himself as endorsee, and in either
case the cashing of such check or the deposit thereof to the credit of
his personal account, shall not constitute notice to a private banker,
banking organization or branch of a foreign banking corporation of any
defense against or claim to the check on the part of any person,
provided that the private banker, banking organization or branch has on
file an authorization from the corporation showing that the officer or
agent is authorized on behalf of the corporation to perform any of the
above acts for unlimited or limited amounts, and that the amount of the
check does not exceed the maximum limits of the amount so contained in
the authorization so filed for the officer or agent when such a
limitation is contained therein.