TITLE 19

Financial institutions

CHAPTER 19-9

Community Obligations and Banking Offenses

SECTION 19-9-13



   § 19-9-13  Checks of trustees. –

When a deposit is made in a regulated institution in the name of two (2) or

more persons as trustees, and a check is drawn upon the trust account by any

trustee or trustees authorized by the other trustee or trustees to draw checks

upon the trust account, neither the payee nor the other holder nor the bank is

bound to inquire whether it is a breach of trust to authorize the trustee or

trustees to draw checks upon the trust account, and the payee or other holder

or the regulated institution is not liable unless the action of the payee or

other holder or the regulated institution amounts to bad faith.



History of Section.

(P.L. 1995, ch. 82, § 47.)