Code of Alabama
Ala. Code § 19-1-3 (2026)
Application of Payments Made to Fiduciaries.
✓ official Alabama Legislature (ALISON) text, current July 2026
A person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary.
(Acts 1943, No. 557, p. 544, §2.)
Notes of Decisions
Cited in 2
cases, 1998–1998 · leading case: Brooks ex rel. Vickers v. First Fed. Sav. & Loan Ass'n of Sylacauga, 726 So. 2d 640 (Ala. 1998).
Brooks ex rel. Vickers v. First Fed. Sav. & Loan Ass'n of Sylacauga, 726 So. 2d 640 (Ala. 1998). “For example, § 19-1-3, Ala.Code 1975, may apply to the present case; however, the application of that statute is not properly before us.”
Brooks v. First Fed. Sav. & Loan Ass'n, 726 So. 2d 640 (Ala. 1998). “In general, § 19-1-3 protects a bank that innocently allows a trustee to withdraw money from a trust account, [3] and § 19-1-9 protects a bank that innocently accepts deposits of trust funds into a trustee's personal account.”
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