A customer presented a check payable to his deceased wife's estate and wanted to deposit to his personal account. He first claimed there was no estate and later claimed to be the executor. We explained that we would require that to be deposited to an account for that estate. After a manager explained why to the client's attorney (long story), he cited ORC 5815.08 stating that we would not have any potential liability if we cashed that check for the client. I will post the code below. Has anyone encountered this?
5815.08 Deposit to personal credit of fiduciary.
If a fiduciary makes a deposit in a bank to the fiduciary's personal credit of checks drawn by the fiduciary upon an account in the fiduciary's own name as fiduciary, checks payable to the fiduciary as fiduciary, checks drawn by the fiduciary upon an account in the name of the principal if the fiduciary is empowered to draw checks thereon, checks payable to the principal and indorsed by the fiduciary if the fiduciary is empowered to indorse the checks, or if the fiduciary otherwise makes a deposit of funds held by the fiduciary as fiduciary, the bank receiving the deposit is not bound to inquire whether the fiduciary is committing a breach of the obligation as fiduciary.
The bank may pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of the obligation as fiduciary in making the deposit or in drawing the check, or with knowledge of such facts that the action of the bank in receiving the deposit or paying the check amounts to bad faith.
Effective Date: 01-01-2007
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