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Can you summarize KYRS 386.140?
ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT > Checks drawn by a fiduciary payable to third person or to himself.
Short Summary
This legal provision, found in the Kentucky Revised Statutes, pertains to checks drawn by a fiduciary. If a check or bill of exchange is drawn by a fiduciary in their capacity as a fiduciary, or in the name of their principal by a fiduciary authorized to do so, the payee is not obligated to inquire whether the fiduciary is breaching their fiduciary obligation in drawing or delivering the instrument. The payee is also not considered to have notice of the breach unless they take the instrument with actual knowledge of the breach or with knowledge that amounts to bad faith. Additionally, if a check or bill of exchange is drawn by a fiduciary as a fiduciary or in the name of their principal, payable to the fiduciary personally or to a third person and then transferred to the fiduciary, the transferee is not required to inquire about any breach of fiduciary obligation by the fiduciary in transferring the instrument. The transferee is also not considered to have notice of the breach unless they take the instrument with actual knowledge of the breach or with knowledge that amounts to bad faith.
Whom does it apply to?
Fiduciaries empowered to draw checks or bills of exchange in the name of their principal
What does it govern?
Checks drawn by a fiduciary payable to third person or to himself
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Kentucky