TRUSTEE ACT 1925 - SECT 54A Bank may recognise certain signatures and endorsements

TRUSTEE ACT 1925 - SECT 54A

    (1)     If 2 or more people receive an amount in a fiduciary position (other than as trustees under a will, settlement or like instrument) and deposit the amount with a bank, the bank may, if authorised by them—

        (a)     pay a cheque drawn on the bank by 1 or more of them or by an agent authorised by them; and

        (b)     recognise as valid an endorsement on a bill of exchange or promissory note payable to their order if the endorsement is an endorsement by 1 or more of them or by an agent authorised by them.

    (2)     If a person receives an amount in a fiduciary position (other than as trustee under a will, settlement or like instrument) and deposits the amount with a bank, the bank may, if authorised by the person—

        (a)     pay a cheque drawn on the bank by an agent authorised by the person; and

        (b)     recognise as valid an endorsement on a bill of exchange or promissory note payable to the order of the person if the endorsement is an endorsement by an agent authorised by the person.

    (3)     This section does not affect the liability of a person to anyone in relation to whom the person is in a fiduciary position.