New South Wales Consolidated Acts

TRUSTEE ACT 1925 - SECT 54A

54A Banker may recognise certain signatures and endorsements

(1) Where two or more persons in a fiduciary position (other than trustees under a will, settlement or like instrument) have deposited with a banker moneys which have been received by them as such fiduciaries, it shall be lawful for the banker, when so authorised by such person--

(a) to pay cheques drawn on the banker by any one or more of them or by any agent authorised by them,

(b) to recognise as a valid endorsement upon any bill of exchange or promissory note payable to the order of such persons an endorsement by any one or more of them or any agent authorised by them.

(2) Where any person in a fiduciary position (other than a trustee under a will, settlement or like instrument) has deposited with a banker moneys which have been received by the person as such fiduciary, it shall be lawful for the banker when so authorised by such person--

(a) to pay cheques drawn on the banker by any agent authorised by the person,

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

(3) Nothing in this section contained shall affect any liability of such persons or person to the persons towards whom they are or he or she is in a fiduciary position.

(4) In this section,
"banker" includes a bank, a building society and a credit union.