If the money of a principal shall be deposited by a private agent in the name of the principal in the hands of a bank of good credit and the deposit is according to the common usage of the place, the agent shall not be responsible for any loss arising from the failure of the bank.
(Civil Code 1895, § 3008; Civil Code 1910, § 3580; Code 1933, § 4-209.)
RESEARCH REFERENCES
Am. Jur. 2d.
- 3 Am. Jur. 2d, Agency, § 223.
C.J.S.- 2A C.J.S., Agency, § 317.
ALR.
- Who must bear loss of funds from failure of bank, at which bill or note is payable, during delay in presenting it, 2 A.L.R. 1381.
Liability of receiver in his official capacity for torts or negligence of receivership employees, 10 A.L.R. 1055.
Deposit to individual account of checks or notes drawn or endorsed by agent or fiduciary, as charging bank with notice of misappropriation, 57 A.L.R. 925; 64 A.L.R. 1404; 106 A.L.R. 836; 115 A.L.R. 648.
Personal liability of agent in respect of funds received from third person and turned over to principal not entitled thereto, 82 A.L.R. 307.
Responsibility of attorney, broker, or other agent depositing his principal's money in his own name or account for loss resulting from the failure of depository or depreciation of currency, 96 A.L.R. 798.
Liability of attorney for loss of client's money or personal property in his possession or entrusted to him, 26 A.L.R.2d 1340.