When a deposit is made in a bank in the name of two or more persons as trustees and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such trustee or trustees to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith.
S.D. Codified Laws § 55-7-10
Deposit in bank in names of two or more trustees--Check drawn by one
Known as the Uniform Fiduciaries Act
The act spans §§ 55–55 (15 sections).
Source: SL 1943, ch 19, § 10; SDC Supp 1960, § 6.0710.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.