14-6201

14-6201. Definitions

In this article, unless the context otherwise requires:

1. "Account" means a contract of deposit between a depositor and a financial
institution and includes a checking account, savings account, certificate of deposit and
share account.

2. "Agent" means a person who is authorized to make account transactions for a
party.

3. "Beneficiary" means a person to whom sums on deposit in an account are payable
on request after the death of all parties or for whom a party is named as a trustee.

4. "Financial institution" means an organization authorized to do business under
state or federal laws relating to financial institutions and includes a bank, trust
company, savings bank, building and loan association, savings and loan company or
association and credit union.

5. "Multiple party account" means an account payable on request to one or more of
two or more parties, whether or not a right of survivorship is mentioned.

6. "Party" means a person who, by the terms of an account and subject to a request,
has a present right other than as a beneficiary or agent to payment from the account.

7. "Pay on death designation" or "POD" means the designation of:

(a) A beneficiary in an account payable on request to one party during the party's
lifetime and on the party's death to one or more beneficiaries or to one or more parties
during their lifetimes and on the death of all of them to one or more beneficiaries.

(b) A beneficiary in an account in the name of one or more parties as trustee for
one or more beneficiaries if the relationship is established by the terms of the account
and there is no subject of the trust other than the sums on deposit in the account,
whether or not payment to the beneficiary is mentioned.

8. "Payment" or "payable" as it relates to sums on deposit includes withdrawal,
payment to a party or third person pursuant to a check or any other request and a pledge
of sums on deposit by a party, or any setoff, reduction or other disposition of all or
part of an account pursuant to a pledge.

9. "Receive", as it relates to notice to a financial institution, means receipt in
the office or branch office of the financial institution in which the account is
established. If the terms of the account require notice at a particular place, receive
means in the place required by those terms.

10. "Request" means a request for payment that complies with all terms of the
account, including special requirements concerning necessary signatures and rules of the
financial institution, and that, if terms of the account condition payment on advance
notice, is treated as immediately effective. Request includes a notice of intent to
withdraw.

11. "Sums on deposit" means the balance payable on an account, including interest
and dividends earned, whether or not included in the current balance and any deposit life
insurance proceeds added to the account by reason of death of a party.

12. "Terms of the account" includes the deposit agreement and other terms and
conditions of the contract of deposit and includes the contract form.