§412:4-106  Fiduciary accounts.  Afinancial institution may open accounts and accept deposits therein in the nameof a person as a trustee, personal representative, guardian, conservator,agent, custodian or other fiduciary for one or more other persons.  Suchaccounts shall be subject to the following treatment:

(1)  If a financial institution has not receivedwritten notice and is not on actual notice that a fiduciary named on a depositaccount has been removed, resigned, died or adjudicated an incapacitated personby a court of competent jurisdiction under applicable law, it may make paymentsor allow transfers or withdrawals from the account to or on the order of thefiduciary in accordance with the provisions of its contract with the accountholder;

(2)  Any fiduciary who withdraws funds from afiduciary account and whose name appears as a fiduciary on such account shallbe presumed by the financial institution to be acting within the scope of anyauthority granted or belonging to the fiduciary.  A payment, transfer orwithdrawal from the account made by or on the order of the fiduciary payable toor for the benefit or account of the fiduciary or credited to the personalaccount of the fiduciary shall not be sufficient in the absence of actualknowledge on the part of the financial institution to charge it with a duty ofinquiry or notice of any infirmity or defect in the right or title of thefiduciary to the funds paid, transferred or withdrawn;

(3)  If a financial institution pays funds or allowsthe transfer or withdrawal of funds from a fiduciary account according to theprovisions of this section or other applicable law of this State, such payment,withdrawal or transfer shall operate to release and discharge the financialinstitution of any further liability to any person with respect to the funds sopaid, transferred or withdrawn, and no action at law or equity may bemaintained against the financial institution for payment, transfer orwithdrawal made in accordance with this section;

(4)  A financial institution which pays or allows anytransfer or withdrawal from a fiduciary account pursuant to this section shallnot be liable for any estate taxes that may be due with respect to saidaccount;

(5)  Notwithstanding the foregoing, trust accountsestablished by the financial institution meeting the definition of "trustaccount" in section 560:6-101 shall be subject to the treatmentprovided in article VI of chapter 560. [L 1993, c 350, pt of §1]

 

Cross References

 

  Uniform Fiduciaries Act, see chapter 556.