Deposit in names of two or more trustees; liability of payee, holder or bank

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3B:14-59. Deposit in names of two or more trustees; liability of payee, holder or bank

When a deposit is made in a bank in the names 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 the 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.

L.1981, c. 405, s. 3B:14-59, eff. May 1, 1982.


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