Deposit in names of two or more trustees. 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 authorized by the others 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 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. (Sept. 14, 1965, 79 Stat. 778, Pub. L. 89-183, § 1.) Prior Codifications 1981 Ed., § 21-1709. 1973 Ed., § 21-1709. Editor's Notes Uniform Law: This section is based upon § 10 of the Uniform Fiduciaries Act.
District of Columbia Legal Code