§412:4-105  Accounts held in morethan one name.  Any deposit account held in the names of two or morepersons may be paid, on request and according to its terms, to any one or moreof the persons.  A financial institution shall not be required to inquire as tothe source of funds received for deposit to an account in the name of more thanone person, or to inquire as to the proposed application of any sum paid fromthe account.  Unless the terms of the deposit account clearly require thesignature of more than one person for payment, transfer or withdrawal:

(1)  Payment, transfer or withdrawal of fundstherefrom by or on the order of any of the persons shall release and dischargethe financial institution from any liability for the paid, transferred or withdrawnfunds with respect to all of the persons, and no action at law or equity may bemaintained against the financial institution for payment, transfer orwithdrawal made in accordance with this section; and

(2)  If the account is pledged, but not all the ownersof the account sign the pledge, the pledge shall nevertheless be valid as toall funds in the account, and the pledge shall not operate to sever orterminate the form of multiple ownership of the account. [L 1993, c 350, pt of§1]

 

Cross References

 

  Multiple-party accounts, see chapter 560, article VI.