Delaware Code Title 5 Sec. 939 – Negotiable instruments
(a) For purposes of this section, “fiduciary” shall have the same meaning as in § 3301(d) of Title 12.
Terms Used In Delaware Code Title 5 Sec. 939
- Fiduciary: A trustee, executor, or administrator.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) If a negotiable instrument is drawn upon the account of a principal in a bank by a fiduciary who is empowered to draw upon the principal’s account, the bank is authorized to pay such instrument without being liable to the principal for the application of the funds.
(c) If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by a fiduciary, or if any negotiable instrument payable or endorsed to a principal is endorsed by a fiduciary empowered to endorse such instrument on behalf of the principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of its obligation as fiduciary by endorsing or delivering the instrument, and is not liable for the application of the funds.