{"data":{"id":"us-ky/krs-386.130","jurisdiction":"us-ky","citation":"KRS 386.130","heading":"Deposits in name of fiduciary as such -- In name of principal.","body":"(1) If a deposit is made in a bank or trust company to the credit of a fiduciary as such,\nthe bank or trust company may pay the amount of the deposit or any part thereof\nupon the check of the fiduciary, signed with the name in which the deposit is\nentered, without being liable to the principal, unless it pays the check with actual\nknowledge that the fiduciary is committing a breach of his obligation as fiduciary in\ndrawing the check or with knowledge of such facts that its action in paying the\ncheck amounts to bad faith.\n(2) If a check is drawn upon the account of his principal by a fiduciary empowered to\ndraw checks upon his principal's account, the bank or trust company may pay the\ncheck without being liable to the principal, unless it pays the check with act ual\nknowledge that the fiduciary is committing a breach of his obligation as fiduciary in\ndrawing the check or with knowledge of such facts that its action in paying the\ncheck amounts to bad faith.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35841","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"a0868dbb27aa490460d8fb1a72ce6692f316ff174cf60af5f66af329f4612918","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.120","next":"us-ky/krs-386.140"},"notice":"GroundRules: Original legal text. Not legal advice."}