If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check. (1923, c. 85, s. 8; C.S., s. 1864(l).)
Notes of Decisions
Cited in
7
cases, 1979–2019 · leading case:
Moretz v. Miller, 486 S.E.2d 85 (N.C. Ct. App. 1997).
Moretz v. Miller, 486 S.E.2d 85 (N.C. Ct. App. 1997).
· cites it 19× “Plaintiff appeals the trial court’s ruling that defendant Southern National Bank of North Carolina’s (SNB) violation of the Uniform Fiduciaries Act (the Act), N.C.G.S. § 32-9 (1996), did not constitute an unfair trade practice under N.”
Edwards v. Nw. Bank, 250 S.E.2d 651 (N.C. Ct. App. 1979).
· cites it 6× “See G.S. 32-9. 2. That the Bank failed to show that there was no genuine issue as to any material fact and that the Bank was entitled to judgment as a matter of law with respect to the Receiver’s assertion that the Bank’s acceptance of an assignment of a note and deed of trust…”
Koss Corp. v. Park Bank, 922 N.W.2d 20 (Wis. 2019).
· cites it 2× “§ 3B:14-55; N.C. Gen. Stat. § 32-9 ; Ohio Rev. Code Ann.”
Edwards v. Nw. Bank, 281 S.E.2d 86 (N.C. Ct. App. 1981).
· cites it 2× “Plaintiff predicates the asserted liability of the bank upon violation of G.S. 32-9, which provides in pertinent part: If a check is drawn upon the account of his principal by a fiduciary who is empowered to draw checks upon his principal’s account, the bank is authorized to pay…”
Global Promotions Grp., Inc. v. Danas Inc., 2012 NCBC 38 (N.C. Bus. Ct. 2012).
· cites it 2× “261, 268 (1979); see also G.S. 32-9. [24] Under the UFA, a bank is liable to its depositor for checks drawn by the depositor's fiduciary18 only if "[(a)] the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in…”
Edwards v. Vanguard Fiduciary Tr. Co., 2018 NCBC 134 (N.C. Bus. Ct. 2018).
· cites it 6× “N.C. Gen. Stat. § 32-9 . 61. In support of its position, Vanguard cites to Danas and Beedie v.”
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