N.Y. General Business Law § 359-l: Deposit of moneys by fiduciary

§ 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.