If a check is drawn upon the account of the principal in a bank by a fiduciary who is empowered to draw checks upon the principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of an obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of an obligation as fiduciary in drawing or delivering the check.
Minn. Stat. § 520.08
DEPOSIT IN NAME OF PRINCIPAL.
Known as the Uniform Fiduciaries Act
The act spans §§ 520.01 to 520.33 (22 sections).
Applied in 5 court decisions — leading case 385 Wis. 2d 261 - Koss Corporation v. Park Bank (2019)
Most recently applied in 385 Wis. 2d 261 - Koss Corporation v. Park Bank (January 2019)
1945 c 202 s 8; 1986 c 444
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Minnesota Office of the Revisor of Statutes. Reproduced from public-domain Minnesota statutes; confirm against the official source for the current text. Not legal advice.