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Can you summarize MNST 336.3-307?
UNIFORM COMMERCIAL CODE > NOTICE OF BREACH OF FIDUCIARY DUTY.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, addresses the notice of breach of fiduciary duty. It defines ‘fiduciary’ as an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty, and ‘represented person’ as the principal, beneficiary, partnership, corporation, or other person to whom the duty is owed. The document outlines the rules that apply when an instrument is taken from a fiduciary for payment or collection, and the represented person claims a breach of fiduciary duty. It specifies the circumstances under which the taker has notice of the breach of fiduciary duty, such as when the instrument is taken for the personal benefit of the fiduciary or deposited to an account other than the fiduciary’s or the represented person’s account. The document also clarifies that if an instrument is issued by the represented person or fiduciary and made payable to the fiduciary personally, the taker does not have notice of the breach of fiduciary duty unless they know of the breach. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Agents, trustees, partners, corporate officers or directors, or other representatives owing a fiduciary duty
What does it govern?
Breach of fiduciary duty
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota