58-714.Same; protection of payors, bona fide purchasers and other thirdparties; personal liability of recipient.(a) Protection of Payors and Other Third Parties.
(1) A payor or other third party is not liable for having made a paymentor transferred an item of property or any other benefit to a beneficiarydesignated in a governing instrument who, under this act, is not entitled tothe payment or item of property, or for having taken any other action in goodfaith reliance on the beneficiary's apparent entitlement under the terms of thegoverning instrument, before the payor or other third party received writtennotice of a claimed lack of entitlement under this act. A payor or other thirdparty is liable for a payment made or other action taken after the payor orother third party received written notice of a claimed lack of entitlementunder this act.
(2) Written notice of a claimed lack of entitlement under paragraph (1) mustbe mailed to the payor's or other third party's main office or home byregistered or certified mail, return receipt requested, or served upon thepayor or other third party in the same manner as a summons in a civil action.Upon receipt of written notice of a claimed lack of entitlement under this act,a payor or other third party may pay any amount owed or transfer or deposit anyitem of property held by it to or with the court having jurisdiction of theprobate proceedings relating to the decedent's estate, or if no proceedingshave been commenced, to or with the court having jurisdiction of probateproceedings relating to decedents' estates located in the county of thedecedent's residence. The court shall hold the funds or item of property and,upon its determination under this act, shall order disbursement in accordancewith the determination. Payments, transfers or deposits made to or with thecourt discharge the payor or other third party from all claims for the value ofamounts paid to or items of property transferred to or deposited with thecourt.
(b) Protection of Bona Fide Purchasers; Personal Liability of Recipient.
(1) A person who purchases property for value and without notice, or whoreceives a payment or other item of property in partial or full satisfaction ofa legally enforceable obligation, is neither obligated under this act to returnthe payment, item of property, or benefit nor liable under this act for theamount of the payment or the value of the item of property or benefit. But aperson who,not for value, receives a payment, item of property or any other benefit towhich the person is not entitled under this act is obligated to return thepayment, item of property or benefit, or is personally liable for the amount ofthe payment or the value of the item of property or benefit, to the person whois entitled to it under this act.
(2) If this act or any part of this act is preempted by federal law withrespect to a payment, an item of property, or any other benefit covered by thisact, a person who, not for value, receives the payment, item of property or anyother benefit to which the person is not entitled under this act is obligatedto return the payment, item of property or benefit or is personally liable forthe amount of the payment or the value of the item of property or benefit, tothe person who would have been entitled to it were this act or part of this actnot preempted.
58-714.Same; protection of payors, bona fide purchasers and other thirdparties; personal liability of recipient.(a) Protection of Payors and Other Third Parties.
(1) A payor or other third party is not liable for having made a paymentor transferred an item of property or any other benefit to a beneficiarydesignated in a governing instrument who, under this act, is not entitled tothe payment or item of property, or for having taken any other action in goodfaith reliance on the beneficiary's apparent entitlement under the terms of thegoverning instrument, before the payor or other third party received writtennotice of a claimed lack of entitlement under this act. A payor or other thirdparty is liable for a payment made or other action taken after the payor orother third party received written notice of a claimed lack of entitlementunder this act.
(2) Written notice of a claimed lack of entitlement under paragraph (1) mustbe mailed to the payor's or other third party's main office or home byregistered or certified mail, return receipt requested, or served upon thepayor or other third party in the same manner as a summons in a civil action.Upon receipt of written notice of a claimed lack of entitlement under this act,a payor or other third party may pay any amount owed or transfer or deposit anyitem of property held by it to or with the court having jurisdiction of theprobate proceedings relating to the decedent's estate, or if no proceedingshave been commenced, to or with the court having jurisdiction of probateproceedings relating to decedents' estates located in the county of thedecedent's residence. The court shall hold the funds or item of property and,upon its determination under this act, shall order disbursement in accordancewith the determination. Payments, transfers or deposits made to or with thecourt discharge the payor or other third party from all claims for the value ofamounts paid to or items of property transferred to or deposited with thecourt.
(b) Protection of Bona Fide Purchasers; Personal Liability of Recipient.
(1) A person who purchases property for value and without notice, or whoreceives a payment or other item of property in partial or full satisfaction ofa legally enforceable obligation, is neither obligated under this act to returnthe payment, item of property, or benefit nor liable under this act for theamount of the payment or the value of the item of property or benefit. But aperson who,not for value, receives a payment, item of property or any other benefit towhich the person is not entitled under this act is obligated to return thepayment, item of property or benefit, or is personally liable for the amount ofthe payment or the value of the item of property or benefit, to the person whois entitled to it under this act.
(2) If this act or any part of this act is preempted by federal law withrespect to a payment, an item of property, or any other benefit covered by thisact, a person who, not for value, receives the payment, item of property or anyother benefit to which the person is not entitled under this act is obligatedto return the payment, item of property or benefit or is personally liable forthe amount of the payment or the value of the item of property or benefit, tothe person who would have been entitled to it were this act or part of this actnot preempted.
58-714.Same; protection of payors, bona fide purchasers and other thirdparties; personal liability of recipient.(a) Protection of Payors and Other Third Parties.
(1) A payor or other third party is not liable for having made a paymentor transferred an item of property or any other benefit to a beneficiarydesignated in a governing instrument who, under this act, is not entitled tothe payment or item of property, or for having taken any other action in goodfaith reliance on the beneficiary's apparent entitlement under the terms of thegoverning instrument, before the payor or other third party received writtennotice of a claimed lack of entitlement under this act. A payor or other thirdparty is liable for a payment made or other action taken after the payor orother third party received written notice of a claimed lack of entitlementunder this act.
(2) Written notice of a claimed lack of entitlement under paragraph (1) mustbe mailed to the payor's or other third party's main office or home byregistered or certified mail, return receipt requested, or served upon thepayor or other third party in the same manner as a summons in a civil action.Upon receipt of written notice of a claimed lack of entitlement under this act,a payor or other third party may pay any amount owed or transfer or deposit anyitem of property held by it to or with the court having jurisdiction of theprobate proceedings relating to the decedent's estate, or if no proceedingshave been commenced, to or with the court having jurisdiction of probateproceedings relating to decedents' estates located in the county of thedecedent's residence. The court shall hold the funds or item of property and,upon its determination under this act, shall order disbursement in accordancewith the determination. Payments, transfers or deposits made to or with thecourt discharge the payor or other third party from all claims for the value ofamounts paid to or items of property transferred to or deposited with thecourt.
(b) Protection of Bona Fide Purchasers; Personal Liability of Recipient.
(1) A person who purchases property for value and without notice, or whoreceives a payment or other item of property in partial or full satisfaction ofa legally enforceable obligation, is neither obligated under this act to returnthe payment, item of property, or benefit nor liable under this act for theamount of the payment or the value of the item of property or benefit. But aperson who,not for value, receives a payment, item of property or any other benefit towhich the person is not entitled under this act is obligated to return thepayment, item of property or benefit, or is personally liable for the amount ofthe payment or the value of the item of property or benefit, to the person whois entitled to it under this act.
(2) If this act or any part of this act is preempted by federal law withrespect to a payment, an item of property, or any other benefit covered by thisact, a person who, not for value, receives the payment, item of property or anyother benefit to which the person is not entitled under this act is obligatedto return the payment, item of property or benefit or is personally liable forthe amount of the payment or the value of the item of property or benefit, tothe person who would have been entitled to it were this act or part of this actnot preempted.
