New Jersey § 3a:41-7
Full text of New Jersey New Jersey Statutes § 3a:41-7, with citation guidance and answers to common questions.
§ 3a:41-7.
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized
to pay the amount of the deposit or any part thereof upon the check of the fiduciary,
signed with the name in which such deposit is entered, without being liable to the
principal, unless the bank pays the check with the actual knowledge that the fiduciary
is committing a breach of his obligation as fiduciary in drawing the 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.
Frequently Asked Questions About New Jersey § 3a:41-7
What does New Jersey Statutes § 3a:41-7 cover?
Section 3a:41-7 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 § 3a:41-7?
A common citation format is "New Jersey Statutes § 3a:41-7" (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 § 3a:41-7 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.