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



(1)  If a financial institution has not received
written notice and is not on actual notice that a fiduciary named on a deposit
account has been removed, resigned, died or adjudicated an incapacitated person
by a court of competent jurisdiction under applicable law, it may make payments
or allow transfers or withdrawals from the account to or on the order of the
fiduciary in accordance with the provisions of its contract with the account
holder;



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fiduciary to the funds paid, transferred or withdrawn;



(3)  If a financial institution pays funds or allows
the transfer or withdrawal of funds from a fiduciary account according to the
provisions of this section or other applicable law of this State, such payment,
withdrawal or transfer shall operate to release and discharge the financial
institution of any further liability to any person with respect to the funds so
paid, transferred or withdrawn, and no action at law or equity may be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;



(4)  A financial institution which pays or allows any
transfer or withdrawal from a fiduciary account pursuant to this section shall
not be liable for any estate taxes that may be due with respect to said
account;



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



 



Cross References



 



  Uniform Fiduciaries Act, see chapter 556.