Deposit in fiduciary personal account

§ 21–1708. Deposit in fiduciary personal account When a fiduciary deposits in a bank to his personal credit checks: (1) drawn by him upon an account in his own name as fiduciary; or (2) payable to him as fiduciary; or (3) drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon; or (4) payable to his principal and indorsed by him, if he is empowered to indorse such checks— or if he otherwise deposits funds held by him as fiduciary, the bank receiving the deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary, and 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 his obligation as fiduciary in making the deposit or in drawing the check, or with knowledge of facts that its action in receiving the deposit or paying the check amounts to bad faith.