If a check is drawn upon the account of his or her 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 his or her 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, however, 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 his or her obligation as fiduciary in drawing or delivering the check.
NRS 162.090
Check drawn upon account of principal
Known as the Uniform Fiduciaries Act
The act spans §§ 162–162 (27 sections).
Applied in 1 court decision — leading case Guild v. First National Bank of Nevada (1976)
Most recently applied in Guild v. First National Bank of Nevada (August 1976)
[8:44:1923; NCL § 2992]
Official source: Nevada Legislature. Reproduced from public-domain Nevada statutes; confirm against the official source for the current text. Not legal advice.