Page:United States Statutes at Large Volume 79.djvu/816

 776

PUBLIC LAW 89-183-SEPT. 14, 1965

[79 STAT.

of real and personal property made by the ward after the filing and before the termination of the conservatorship are void. Uniform Fiduc l a r i e s Act.

CHAPTER 17—UNIFORM FIDUCIARIES ACT g „

21-1701. 21-1702. 21-1703. 21-1704. 21-1705. 21-1706. 21-1707. 21-1708. 21-1709. 21-1710. 21-1711. 21-1712.

Definitions. Application of payment made to fiduciaries. Transfer of negotiable instruments by fiduciary. Check drawn by fiduciary payable to third person. Check drawn by and payable to fiduciary. Deposit in name of fiduciary as such. Deposit in name of principal; check drawn thereon by fiduciary; check payable to drawee bank. Deposit in fiduciary's personal account. Deposit in names of two or more trustees. Law not retroactive. Cases not provided for by chapter. Short title.

§21-1701. Definitions (a) I n this chapter unless the context otherwise requires: "bank" includes a person or association of persons, whether incorporated or not, carrying on the business of banking; "fiduciary" includes a trustee under a trust, express, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or other person acting in a fiduciary capacity for a person, trust, or estate; "person" includes a corporation, partnership, or other association, or two or more persons having a joint or common interest; "principal" includes a person to whom a fiduciary as such owes an obligation. (b) A thing is done "in good faith" within the meaning of this chapter, when it is in fact done honestly, whether negligently or not. § 21-1702. Application of payment made to fiduciaries A person who in good faith pays or transfers to a fiduciary money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right or title acquired from the fiduciary in consideration of the payment or transfer is not invalid in consequence of a misapplication by the fiduciary. § 21-1703. Transfer of negotiable instruments by fiduciary If a negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if a negotiable instrument payable or indorsed to his principal is indorsed by a fiduciary empowered to indorse the instrument on behalf of his principal, the indorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in indorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of the breach or with knowledge of such facts that bis action in taking the instrument amounts to bad faith. If, however, the instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the

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