New Jersey § 12a:3-307
Full text of New Jersey New Jersey Statutes § 12a:3-307, with citation guidance and answers to common questions.
§ 12a:3-307.
a. As used in this section: (1) “ Fiduciary ” means an agent, trustee, partner, corporate officer or director, or other representative
owing a fiduciary duty with respect to an instrument. (2) “ Represented person ” means the principal, beneficiary, partnership, corporation, or other person to whom
the duty stated in paragraph (1) is owed. b. If an instrument is taken from a fiduciary for payment or collection or for value,
the taker has knowledge of the fiduciary status of the fiduciary, and the represented
person makes a claim to the instrument or its proceeds on the basis that the transaction
of the fiduciary is a breach of fiduciary duty, the following rules apply: (1) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of
the represented person. (2) In the case of an instrument payable to the represented person or the fiduciary
as such, the taker has notice of the breach of fiduciary duty if the instrument is
taken in payment of or as security for a debt known by the taker to be the personal
debt of the fiduciary, taken in a transaction known by the taker to be for the personal
benefit of the fiduciary, or deposited to an account other than an account of the
fiduciary, as such, or an account of the represented person. (3) If an instrument is issued by the represented person or the fiduciary as such,
and made payable to the fiduciary personally, the taker does not have notice of the
breach of fiduciary duty unless the taker knows of the breach of fiduciary duty. (4) If an instrument is issued by the represented person or the fiduciary as such,
to the taker as payee, the taker has notice of the breach of fiduciary duty if the
instrument is taken in payment of or as security for a debt known by the taker to
be the personal debt of the fiduciary, taken in a transaction known by the taker to
be for the personal benefit of the fiduciary, or deposited to an account other than
an account of the fiduciary, as such, or an account of the represented person.
Frequently Asked Questions About New Jersey § 12a:3-307
What does New Jersey Statutes § 12a:3-307 cover?
Section 12a:3-307 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 12a:3-307?
A common citation format is "New Jersey Statutes § 12a:3-307" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 12a:3-307 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.