{"data":{"id":"us-ky/krs-386.140","jurisdiction":"us-ky","citation":"KRS 386.140","heading":"Checks drawn by a fiduciary payable to third person or to himself.","body":"(1) If a check or other bill of exchange is drawn by a fiduciary as such, or in the name\nof his principal by a fiduciary empowered to draw the instrument in the name of his\nprincipal, the payee is not bound to inquire whether the fiduciary is committing a\nbreach of his obligation as fiduciary in drawing or delivering the instrument, and is\nnot chargeable with notice that the fiduciary is committing a breach of his\nobligation as fiduciary, unless he takes the instrument with actual knowledge of the\nbreach or wit h knowledge of such facts that his action in taking the instrument\namounts to bad faith.\n(2) If a check or other bill of exchange is drawn by a fiduciary as such or in the name of\nhis principal by a fiduciary empowered to draw the instrument in the name o f his\nprincipal, payable to the fiduciary personally, or payable to a third person and by\nhim transferred to the fiduciary, and is thereafter transferred by the fiduciary,\nwhether in payment of a personal debt of the fiduciary or otherwise, the transferee is\nnot bound to inquire whether the fiduciary is committing a breach of his obligation\nas fiduciary in transferring the instrument, and is not chargeable with notice that the\nfiduciary is committing a breach of his obligation as fiduciary unless he takes t he\ninstrument with actual knowledge of the breach or with knowledge of such facts\nthat his action in taking the instrument amounts to bad faith.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35842","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"fdd8291b34e06b42c49dfd51e58fa47f8b2d3eb6d67213f9205c0f599c9109cf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.130","next":"us-ky/krs-386.150"},"notice":"GroundRules: Original legal text. Not legal advice."}