{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1177.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1177.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1177.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1177.html"}],"law_id":58219,"edition_id":1,"section_id":58219,"structure_id":14436,"section_number":"6.2-1177","catch_line":"Savings institution need not inquire as to fiduciary funds deposited in fiduciary’s personal account","history":"1980, c. 329, \u00a7 6.1-195.27:1; 1985, c. 425, \u00a7 6.1-194.60; 2010, c. 794.","full_text":"If any fiduciary or agent makes a deposit in a savings institution to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks drawn by him upon an account in the name of his principal, if he is empowered to draw checks thereto, or of checks payable to his principal and endorsed by him as fiduciary, the institution receiving the deposit:\n\n1\n\nShall not be required to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and2\n\nIs authorized to pay the amount of the deposit or any part thereof upon the withdrawal by the fiduciary without being liable to the principal, unless the institution receives the deposit or pays the withdrawal with (i) actual knowledge that the fiduciary, in making such deposit or in making such withdrawal, is committing a breach of his obligation as fiduciary or (ii) knowledge of such facts that its action in receiving the deposit or paying the withdrawal amounts to bad faith.","order_by":null,"text":{"0":{"id":213339,"text":"If any fiduciary or agent makes a deposit in a savings institution to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks drawn by him upon an account in the name of his principal, if he is empowered to draw checks thereto, or of checks payable to his principal and endorsed by him as fiduciary, the institution receiving the deposit:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":213340,"text":"Shall not be required to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":213341,"text":"Is authorized to pay the amount of the deposit or any part thereof upon the withdrawal by the fiduciary without being liable to the principal, unless the institution receives the deposit or pays the withdrawal with (i) actual knowledge that the fiduciary, in making such deposit or in making such withdrawal, is committing a breach of his obligation as fiduciary or (ii) knowledge of such facts that its action in receiving the deposit or paying the withdrawal amounts to bad faith.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1"}},"ancestry":[{"id":14436,"edition_id":1,"name":"Accounts","identifier":"6","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 03:48:08","date_modified":"2026-06-26 03:48:08","permalink":{"id":264377,"object_type":"structure","relational_id":14436,"identifier":"6","token":"6.2\/II\/11\/6","url":"\/6.2\/II\/11\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13490,"edition_id":1,"name":"Savings Institutions","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:01","date_modified":"2026-06-26 03:45:01","permalink":{"id":264101,"object_type":"structure","relational_id":13490,"identifier":"11","token":"6.2\/II\/11","url":"\/6.2\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60070,"structure_id":14436,"section_number":"6.2-1166","catch_line":"Accounts of state savings institutions","url":"\/6.2-1166\/","token":"6.2\/II\/11\/6\/6.2-1166","metadata":false},{"id":72669,"structure_id":14436,"section_number":"6.2-1167","catch_line":"Rules governing withdrawal","url":"\/6.2-1167\/","token":"6.2\/II\/11\/6\/6.2-1167","metadata":false},{"id":72950,"structure_id":14436,"section_number":"6.2-1168","catch_line":"Redemption","url":"\/6.2-1168\/","token":"6.2\/II\/11\/6\/6.2-1168","metadata":false},{"id":67289,"structure_id":14436,"section_number":"6.2-1169","catch_line":"Accounts of savings institutions as legal investments and as security","url":"\/6.2-1169\/","token":"6.2\/II\/11\/6\/6.2-1169","metadata":false},{"id":69447,"structure_id":14436,"section_number":"6.2-1170","catch_line":"Deposits of federal taxes and U.S. Treasury tax and loan accounts","url":"\/6.2-1170\/","token":"6.2\/II\/11\/6\/6.2-1170","metadata":false},{"id":75969,"structure_id":14436,"section_number":"6.2-1171","catch_line":"Accounts under federal Self-Employed Individuals Tax Retirement Act and federal Employee Retirement Income Security Act of 1974 (P.L. 93-406, 88 Stat. 829)","url":"\/6.2-1171\/","token":"6.2\/II\/11\/6\/6.2-1171","metadata":false},{"id":76647,"structure_id":14436,"section_number":"6.2-1172","catch_line":"Accounts issued in name of minor","url":"\/6.2-1172\/","token":"6.2\/II\/11\/6\/6.2-1172","metadata":false},{"id":55801,"structure_id":14436,"section_number":"6.2-1173","catch_line":"Powers of attorney on accounts","url":"\/6.2-1173\/","token":"6.2\/II\/11\/6\/6.2-1173","metadata":false},{"id":73540,"structure_id":14436,"section_number":"6.2-1174","catch_line":"Accounts of deceased or incompetent persons","url":"\/6.2-1174\/","token":"6.2\/II\/11\/6\/6.2-1174","metadata":false},{"id":86347,"structure_id":14436,"section_number":"6.2-1175","catch_line":"Repealed","url":"\/6.2-1175\/","token":"6.2\/II\/11\/6\/6.2-1175","metadata":false},{"id":57143,"structure_id":14436,"section_number":"6.2-1176","catch_line":"Accounts of fiduciaries","url":"\/6.2-1176\/","token":"6.2\/II\/11\/6\/6.2-1176","metadata":false},{"id":58219,"structure_id":14436,"section_number":"6.2-1177","catch_line":"Savings institution need not inquire as to fiduciary funds deposited in fiduciary's personal account","url":"\/6.2-1177\/","token":"6.2\/II\/11\/6\/6.2-1177","metadata":false},{"id":66743,"structure_id":14436,"section_number":"6.2-1178","catch_line":"Accounts held by various trustees for same beneficiary","url":"\/6.2-1178\/","token":"6.2\/II\/11\/6\/6.2-1178","metadata":false}],"previous_section":{"id":57143,"structure_id":14436,"section_number":"6.2-1176","catch_line":"Accounts of fiduciaries","url":"\/6.2-1176\/","token":"6.2\/II\/11\/6\/6.2-1176","metadata":false},"next_section":{"id":66743,"structure_id":14436,"section_number":"6.2-1178","catch_line":"Accounts held by various trustees for same beneficiary","url":"\/6.2-1178\/","token":"6.2\/II\/11\/6\/6.2-1178","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1177\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 329 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1985, chapter 425; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":264423,"object_type":"law","relational_id":58219,"identifier":"6.2-1177","token":"6.2\/II\/11\/6\/6.2-1177","url":"\/6.2-1177\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1177\/","token":"6.2\/II\/11\/6\/6.2-1177","dublin_core":{"Title":"Savings institution need not inquire as to fiduciary funds deposited in fiduciary’s personal account","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1177","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

If any fiduciary or agent makes a deposit in a savings institution<\/span> to his personal credit of checks drawn by him upon an account<\/span> in his own name as fiduciary, or of checks drawn by him upon an account<\/span> in the name of his principal, if he is empowered to draw checks thereto, or of checks payable to his principal and endorsed by him as fiduciary, the institution receiving the deposit:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Shall not be required to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Is authorized to pay the amount of the deposit or any part thereof upon the withdrawal by the fiduciary without being liable to the principal, unless the institution receives the deposit or pays the withdrawal with (i) actual knowledge that the fiduciary, in making such deposit or in making such withdrawal, is committing a breach of his obligation as fiduciary or (ii) knowledge of such facts<\/span> that its action in receiving the deposit or paying the withdrawal amounts to bad faith. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSAVINGS INSTITUTION NEED NOT INQUIRE AS TO FIDUCIARY FUNDS DEPOSITED IN\nFIDUCIARY’S PERSONAL ACCOUNT (\u00a7 6.2-1177)\n\nIf any fiduciary or agent makes a deposit in a savings institution to his\npersonal credit of checks drawn by him upon an account in his own name as\nfiduciary, or of checks drawn by him upon an account in the name of his\nprincipal, if he is empowered to draw checks thereto, or of checks payable to\nhis principal and endorsed by him as fiduciary, the institution receiving the\ndeposit:\n\n1. Shall not be required to inquire whether the fiduciary is committing thereby\na breach of his obligation as fiduciary; and\n\n2. Is authorized to pay the amount of the deposit or any part thereof upon the\nwithdrawal by the fiduciary without being liable to the principal, unless the\ninstitution receives the deposit or pays the withdrawal with (i) actual\nknowledge that the fiduciary, in making such deposit or in making such\nwithdrawal, is committing a breach of his obligation as fiduciary or (ii)\nknowledge of such facts that its action in receiving the deposit or paying the\nwithdrawal amounts to bad faith.\n\nHISTORY: 1980, c. 329, \u00a7 6.1-195.27:1; 1985, c. 425, \u00a7 6.1-194.60; 2010, c.\n794.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}