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



(1)  Payment, transfer or withdrawal of funds
therefrom by or on the order of any of the persons shall release and discharge
the financial institution from any liability for the paid, transferred or withdrawn
funds with respect to all of the persons, and no action at law or equity may be
maintained against the financial institution for payment, transfer or
withdrawal made in accordance with this section; and



(2)  If the account is pledged, but not all the owners
of the account sign the pledge, the pledge shall nevertheless be valid as to
all funds in the account, and the pledge shall not operate to sever or
terminate 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.