{"data":{"id":"us-ky/krs-386.120","jurisdiction":"us-ky","citation":"KRS 386.120","heading":"Deposits in fiduciary's personal account.","body":"If a fiduciary makes a deposit in a bank or trust company to his personal credit of checks\ndrawn by him upon an account in his own name as fiduciary, or of checks payable to him\nas fiduciary, or of checks drawn by him upon an account in the name of his principal if he\nis empowered to draw checks thereon, or of checks payable to his principal and endorsed\nby him if he is empowered to endorse them, or if he otherwise makes a deposit of funds\nheld by him as fiduciary, the bank or trust company receiving the de posit is not bound to\ninquire whether the fiduciary is committing thereby a breach of his obligation as\nfiduciary. The bank or trust company may pay the amount of the deposit or any part\nthereof upon the personal check of the fiduciary without being liable  to the principal,\nunless it receives the deposit or pays the check with actual knowledge that the fiduciary is\ncommitting a breach of his obligation as fiduciary in making the deposit or in drawing the\ncheck or with knowledge of such facts that its action  in receiving the deposit or paying\nthe check amounts to bad faith.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35840","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"9e249ab27e4ee565b8d164ccb696e043559d06676928e7d2cd9cb6d908ff1af7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.110","next":"us-ky/krs-386.130"},"notice":"GroundRules: Original legal text. Not legal advice."}