KRS 386.130: Deposits in name of fiduciary as such -- In name of principal.

(1) If a deposit is made in a bank or trust company to the credit of a fiduciary as such,

the bank or trust company may pay the amount of the deposit or any part thereof

upon the check of the fiduciary, signed with the name in which the deposit is

entered, without being liable to the principal, unless it pays the check with actual

knowledge that the fiduciary is committing a breach of his obligation as fiduciary in

drawing the check or with knowledge of such facts that its action in paying the

check amounts to bad faith.

(2) If a check is drawn upon the account of his principal by a fiduciary empowered to

draw checks upon his principal's account, the bank or trust company may pay the

check without being liable to the principal, unless it pays the check with act ual

knowledge that the fiduciary is committing a breach of his obligation as fiduciary in

drawing the check or with knowledge of such facts that its action in paying the

check amounts to bad faith.