16-304.   Same; payments upon death, conditions;balances; notice; liability.(a) If any balance remains in the account upon the death of the personforwhose services the funds were paid, the same shall not be paid by suchbank, credit union or savings and loan association to the person,association, partnership, firm orcorporation until a certified copy of the deathcertificateof such person, a verification of death form or other acceptable proof ofdeath shall have been furnished to the bank, creditunion or savings and loan association, together with a verified statementsetting forth that allof the terms and conditions of such agreement have been fully performedby the person, association, partnership, firm or corporation.

      (b)   If any balanceremains in the fund after disposition of the fund in accordance with theterms of the agreement, contract or plan such balance shall inure to thebenefit of the estate of the purchaser of the agreement, contract or planunless the purchaser was a person who received medical assistance from thedepartment of social and rehabilitation services or a deceased surviving spouseof a recipient of medical assistance and the bank,credit union or savings and loan association has received written notice fromthe department of social and rehabilitation services, the funeral home or therecipient, stating that medical assistance has been expended on the recipientfor which the department of social and rehabilitation services may have aclaim. If such notice has been received, the balance shall be paidto the secretary of social and rehabilitation services or the secretary'sdesignee to the extent of medical assistance expended on the deceasedrecipient.

      (c)   The bank, credit union or savings and loan association shall not beliable to the department of social and rehabilitation services for the balancein the fund if written notice has not been received and the balance of the fundhas been paid to the estate of the purchaser of the agreement as providedabove.

      History:   L. 1953, ch. 54, § 4;L. 1973, ch. 86, § 5;L. 1976, ch. 97, § 4;L. 1983, ch. 76, § 4;L. 1989, ch. 48, § 73;L. 1996, ch. 123, § 1;L. 2002, ch. 106, § 2;L. 2004, ch. 36, § 1;L. 2006, ch. 71, § 1; July 1.