                                 CODE OF VIRGINIA

SAVINGS INSTITUTION NEED NOT INQUIRE AS TO FIDUCIARY FUNDS DEPOSITED IN
FIDUCIARY&#8217;S PERSONAL ACCOUNT (§ 6.2-1177)

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:

1. Shall not be required to inquire whether the fiduciary is committing thereby
a breach of his obligation as fiduciary; and

2. 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.

HISTORY: 1980, c. 329, § 6.1-195.27:1; 1985, c. 425, § 6.1-194.60; 2010, c.
794.