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This entry was published on 2014-09-22
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SECTION 359-L
Deposit of moneys by fiduciary
General Business (GBS) CHAPTER 20, ARTICLE 23-B
§ 359-l. Deposit of moneys by fiduciary. If a fiduciary makes a
deposit in a bank to his personal credit of checks drawn by him upon an
account against which he is empowered to sign as a fiduciary, or of
checks drawn by him upon an account in the name of his principal if he
is empowered to draw checks thereon, the bank receiving such deposit may
assume, if acting in good faith and without actual knowledge to the
contrary, that the funds so deposited by the fiduciary are funds to
which the fiduciary is personally entitled. Nothing contained in this
section shall be deemed to modify or otherwise affect any provision of
section ninety-five of the negotiable instruments law, nor to relieve
such bank from any liability imposed upon it by law to the extent of any
payment or amount which such bank may receive for its benefit from any
withdrawal or application of such funds so deposited.