Code of Alabama
Ala. Code § 19-1-10 (2026)
Deposit in Names of Two or More Fiduciaries.
✓ official Alabama Legislature (ALISON) text, current July 2026
When a deposit is made in a bank in the name of two or more persons as fiduciaries and a check is drawn upon the trust account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries 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 such fiduciary or fiduciaries 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.
(Acts 1943, No. 557, p. 544, §10.)
Notes of Decisions
Cited in 3
cases, 1996–1998 · leading case: Brooks ex rel. Vickers v. First Fed. Sav. & Loan Ass'n of Sylacauga, 679 So. 2d 1148 (Ala. Civ. App. 1996).
Brooks ex rel. Vickers v. First Fed. Sav. & Loan Ass'n of Sylacauga, 679 So. 2d 1148 (Ala. Civ. App. 1996). “rity to reverse this cause and remand for the trial court to apply applicable trust law and principles; however, it appears to me that in order to recover against the depositing bank, the plaintiff must first establish that the trustee, Brooks, breached his fiduciary duty by…”
Brooks ex rel. Vickers v. First Fed. Sav. & Loan Ass'n of Sylacauga, 726 So. 2d 640 (Ala. 1998). “First, we hold that § 19-1-10 is not applicable to the Brookses’ claims, because it deals with deposits made by check, and it is undisputed that none of the deposits in this case were made by check.”
Brooks v. First Fed. Sav. & Loan Ass'n, 726 So. 2d 640 (Ala. 1998). “Brooks alone could withdraw funds from the trust account is a question of law; that the testimony of First Federal's expert as to the meaning of the trust instrument was inadmissible; and that Ala.Code 1975, § 19-1-10, does not apply to shield First Federal from the Brookses'…”
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