Idaho State Statutes - Idaho Attorney Directory

If a fiduciary makes a
deposit in a bank to his personal credit of checks drawn by him upon an
account in his own name as fiduciary or of the checks payable to him as
fiduciary, or of checks drawn by him upon an account in the name of his
principal if he is empowered to draw checks thereon, or of checks payable to
his principal and indorsed by him, if he is empowered to indorse such checks,
or if he otherwise makes a deposit of funds held by him as fiduciary, the bank
receiving such deposit is not bound to inquire whether the fiduciary is
committing thereby a breach of his obligations as fiduciary; and the bank is
authorized to 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 his obligation as fiduciary in making such
deposit or in drawing such check, or with knowledge of such facts that its
action in receiving the deposit or paying the check amounts to bad faith.

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