§ 19-9-14.1 Uniform multiple-personaccounts. – Part I. Definitions and General Provisions =nl
(a) Definitions. For purposes of this section thefollowing words and phrases shall have the following meanings, unless thecontext indicates another meaning:
(1) "Account" means a contract of deposit between a depositorand a depository institution, and includes a checking account, savings account,certificate of deposit, and share account.
(2) "Agent" means a person authorized to make accounttransactions for a party.
(3) "Beneficiary" means a person named as one to whom sums ondeposit in an account are payable on request after death of all parties or forwhom a party is named as trustee.
(4) "Devisee" means any person designated in a will toreceive a testamentary disposition of real or personal property.
(5) "Depository institution" means an organization authorizedto receive deposits and to do business under state or federal laws relating tofinancial institutions, and credit unions, and includes a bank, trust company,savings bank, building and loan association, savings and loan company orassociation.
(6) "Heirs" means those persons, including a survivingspouse, who are entitled under the statutes of intestate succession to theproperty of a decedent.
(7) "Multiple-person" or "Multiple-party account" means anaccount payable on request to one or more parties, whether or not a right ofsurvivorship is mentioned.
(8) "Party" means a person who, by the terms of an account,has a present right, subject to request, to payment from the account other thanas a beneficiary or agent.
(9) "Payment" means payment of sums on deposit and includeswithdrawal, payment to a party or third person pursuant to check or otherrequest, and a pledge of sums on deposit by a party, or a set-off, reduction,or other disposition of all or part of an account pursuant to a pledge.
(10) "Personal representative" includes executor,administrator, successor or other court appointed fiduciary, and persons whoperform substantially the same function under the law governing decedent'sestates.
(11) "POD designation" means the designation of: (i) abeneficiary in an account payable on request to one party during his or herlifetime and on his or her death to one or more beneficiaries; or to one ormore parties during their lifetimes and on death of all of them to one or morebeneficiaries; or (ii) a beneficiary in an account in the name of one or moreparties as trustee for one or more beneficiaries if the relationship isestablished by the terms of the account and there is no trust property otherthan the sums on deposit in the account, whether or not payment to thebeneficiary is mentioned.
(12) "Receive" as it relates to notice to a depositoryinstitution, means receipt in the principal office or branch office of thedepository institution in which the account is established, but if the terms ofthe account require notice at a particular place, in the place required.
(13) "Request" means a request for payment complying with allterms of the account, including special requirements concerning necessarysignatures and regulations of the depository institution; but, for purposes ofthis section if terms of the account condition payment on advance notice, arequest for payment is treated as immediately effective and a notice of intentto withdraw is treated as a request for payment.
(14) "State" includes any state of the United States, theDistrict of Columbia, the Commonwealth of Puerto Rico, and any territory orpossession subject to the legislative authority of the United States.
(15) "Successors" means those persons, other than creditors,who are entitled to property of a decedent under the decedent's will, byintestacy or otherwise.
(16) "Sums on deposit" means the balance payable on anaccount, including interest and dividends earned, whether or not included inthe current balance, and any deposit life insurance proceeds added to theaccount by reason of death of a party.
(17) "Terms of the account" includes the deposit agreementand other terms and conditions, including the form, of the contract of deposit.
(b) Scope. This section applies to accounts in thisstate. This section does not apply to:
(1) An account established for a partnership, joint venture,or other organization for a business purpose;
(2) An account controlled by one or more persons as an agentor trustee for a corporation, unincorporated association, or charitable orcivic organization; or
(3) A fiduciary or trust account in which the relationship isestablished other than by the terms of the account.
(1) An account may be for a single party or multiple parties.A multiple-party account may be with or without a right of survivorship betweenthe parties. Subject to subsection (h)(3), either a single-party account or amultiple-party account may have a POD designation.
(2) An account established before, on, or after the effectivedate of this section, whether in the form prescribed in subsection (d) or inany other form, is either a single-party account or a multiple-party account,with or without right of survivorship, and with or without a POD designation,within the meaning of this section is governed by this subsection.
(1) A contract of deposit that contains provisions insubstantially the following form establishes the type of account provided; andthe account is governed by the provisions of this section applicable to anaccount of that type:
UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM
PARTIES [Name One or More Parties]:
OWNERSHIP [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – Party's own account
]]]]]]]] MULTIPLE-PARTY ACCOUNT – Parties' own accountin proportion to net contributions unless there is clear and convincingevidence of a different intent.
RIGHTS AT DEATH [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – At death of party,ownership passes as part of party's estate.
]]]]]]]] SINGLE-PARTY ACCOUNT WITH POD (PAY ON DEATH)DESIGNATION – At death of party, ownership passes to POD beneficiary orbeneficiaries, equally, and is not part of party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP– At death of party, ownership passes to surviving party or parties.
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIPAND POD (PAY ON DEATH) DESIGNATION – At death of last surviving party,ownership passes to POD beneficiary or beneficiaries, equally, and is not partof last surviving party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP– At death of party, deceased party's ownership passes as part of deceasedparty's estate.
(2) A contract of deposit that does not contain provisions insubstantially the form provided in subsection (d)(1) is governed by theprovisions of this section applicable to the type of account that most nearlyconforms to the depositor's intent.
(1) By a writing signed by all parties, the parties maydesignate another person as agent of all parties on an account.
(2) Unless the terms of an agency designation provide thatthe agent's authority terminates on disability or incapacity of a party, theagent's authority survives such disability or incapacity. The agent may act fora disabled or incapacitated party until the authority of the agent isterminated.
(3) Death of the sole party or last surviving partyterminates the authority of an agent.
(f) Applicability of Parts. The provisions of Part IIconcerning beneficial ownership as between parties or as between parties andbeneficiaries apply only to controversies between those persons and theircreditors and other successors, and do not apply to the right of those personsto payment as determined by the terms of the account. Part III governs theliability and set-off rights of depository institutions that make paymentspursuant to it.
Part II. Ownership as Between Parties and Others
(1) In this subsection, "net contribution" of a party meansthe sum of all deposits to an account made by or for the party, less allpayments from the account made to or for the party which have not been paid toor applied to the use of another party and a proportionate share of any chargesdeducted from the account, plus a proportionate share of any interest ordividends earned, whether or not included in the current balance. The termincludes any deposit life insurance proceeds added to the account by reason ofdeath of the party whose net contribution is in question.
(2) During the lifetime of all parties, an account belongs tothe parties in proportion to the net contribution of each to the sums ondeposit, unless there is clear and convincing evidence of a different intent.As between parties married to each other, in the absence of proof otherwise,the net contribution of each is presumed to be an equal amount.
(3) A beneficiary in an account having a POD designation hasno right to sums on deposit during the lifetime of any party.
(1) Except as otherwise provided in this section, on death ofa party sums on deposit in a multiple-party account belong to the survivingparty or parties. If two (2) or more parties survive and one is the survivingspouse of the decedent, the amount to which the decedent, immediately beforedeath, was beneficially entitled under subsection (g) belongs to the survivingspouse. If two (2) or more parties survive and none is the surviving spouse ofthe decedent, the amount to which the decedent, immediately before death, wasbeneficially entitled under subsection (g) belongs to the surviving parties inequal shares, and augments the proportion to which each survivor, immediatelybefore the decedent's death, was beneficially entitled under subsection (g),and the right of survivorship continues between the surviving parties.
(2) In an account with a POD designation:
(i) On death of one of two (2) or more parties, the rights insums on deposit are governed by subsection (h)(1).
(ii) On death of the sole party or the last survivor of two(2) or more parties, sums on deposit belong to the surviving beneficiary orbeneficiaries. If two (2) or more beneficiaries survive, sums on deposit belongto them in equal and undivided shares, and there is no right of survivorship inthe event of death of a beneficiary thereafter. If no beneficiary survives,sums on deposit belong to the estate of the last surviving party.
(3) Sums on deposit in a single-party account without a PODdesignation, or in a multiple-party account that, by the terms of the account,is without right of survivorship, are not affected by death of a party, but theamount of which the decedent, immediately before death, was beneficiallyentitled under subsection (g) herein is transferred as part of the decedent'sestate. A POD designation in a multiple-party account without right ofsurvivorship is ineffective. For purposes of this section, designation of anaccount as a tenancy in common establishes that the account is without right ofsurvivorship.
(4) The ownership right of a surviving party or beneficiary,or of the decedent's estate, in sums on deposit is subject to requests forpayment made by a party before the party's death, whether paid by thedepository institution before or after death, or unpaid. The surviving party orbeneficiary, or the decedent's estate, is liable to the payee of an unpaidrequest for payment. The liability is limited to a proportionate share of theamount transferred under this section, to the extent necessary to discharge therequest for payment.
(i) Alteration of rights. Rights at death of a partyunder subsection (h) are determined by the terms of the account at the death ofthe party. A party may alter the terms of the account by a notice signed by theparty and given to the depository institution to change the terms of theaccount or to stop or vary payment under the terms of the account. To beeffective, the notice must be received by the financial institution during theparty's lifetime. A right of survivorship, arising from the express terms ofthe account, subsection (h), or a POD designation, may not be altered by will.
(j) Accounts and transfers nontestamentary. A transferresulting from the application of subsection (h) is effective by reason of theterms of the account involved and this section and is not testamentary orsubject to estate administration.
Part III. Protection of Depository Institutions
(k) Authority of depository institution. A depositoryinstitution may enter into a contract of deposit for a multiple-party accountto the same extent it may enter into a contract of deposit for a single-partyaccount, and may provide for a POD designation in either a single-party accountor a multiple-party account. A depository institution need not inquire as tothe source of a deposit to an account or as to the proposed application of apayment from an account.
(l) Payment on multiple-party account. A depositoryinstitution, on request, may pay sums on deposit in a multiple-party account to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when payment is requested and whetheror not the party making the request survives another party; or
(2) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary,unless the account is without right of survivorship under subsection (h).
(m) Payment on POD designation. A depositoryinstitution, on request, may pay sums on deposit in an account with a PODdesignation to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when the payment is requested andwhether or not a party survives another party;
(2) The beneficiary or beneficiaries, if proof of death ispresented to the depository institution showing that the beneficiary orbeneficiaries survived all persons named as parties; or
(3) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party, if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary.
(n) Payment to designated agent. A depositoryinstitution, on request of an agent under a power of attorney or other agencydesignation for an account, may pay to the agent sums on deposit in theaccount, whether or not a party is disabled, incapacitated, or deceased whenthe request is made or received, and whether or not the authority of the agentterminates on the disability or incapacity of a party.
(o) Payment to minor. If a depository institution isrequired or permitted to make payment pursuant to this chapter to a minordesignated as a beneficiary, payment may be made pursuant to the UniformTransfers to Minors Act.
(1) Payment made pursuant to this section in accordance withthe terms of the account discharges the depository institution from all claimsfor amounts so paid, whether or not the payment is consistent with thebeneficial ownership of the account as between parties, beneficiaries, or theirsuccessors. Payment may be made whether or not a party, beneficiary, or agentis disabled, incapacitated, or deceased when payment is requested, received, ormade.
(2) Protection under this section does not extend to paymentsmade after a depository institution has received written notice from a party,or from the personal representative, surviving spouse, or heir or devisee of adeceased party, to the effect that payments in accordance with the terms of theaccount, including one having an agency designation, should not be permitted,and the depository institution has had a reasonable opportunity to act on itwhen the payment is made. Unless the notice is withdrawn by the person givingit, the successor of any deceased party must concur in request for payment ifthe depository institution is to be protected under this section. Unless adepository institution has been served with process in an action or proceeding,no other notice or other information shown to have been available to thedepository institution affects its right to protection under this section.
(3) A depository institution that receives written noticepursuant to this section or otherwise has reason to believe that a disputeexists as to the rights of the parties may refuse, without liability, to makepayments in accordance with the terms of the account.
(4) Protection of a depository institution under this sectiondoes not affect the rights of parties in disputes between themselves or theirsuccessors concerning the beneficial ownership of sums on deposit in accountsor payments made from accounts.
(q) Set-off. Without qualifying any other statutoryright to set-off or lien and subject to any contractual provision, if a partyis indebted to a depository institution, the institution has a right to set-offagainst the account. The amount of the account subject to set-off is theproportion to which the party is, or immediately before death was, beneficiallyentitled under subsection (g) or, in the absence of proof of that proportion,an equal share with all parties.
§ 19-9-14.1 Uniform multiple-personaccounts. – Part I. Definitions and General Provisions =nl
(a) Definitions. For purposes of this section thefollowing words and phrases shall have the following meanings, unless thecontext indicates another meaning:
(1) "Account" means a contract of deposit between a depositorand a depository institution, and includes a checking account, savings account,certificate of deposit, and share account.
(2) "Agent" means a person authorized to make accounttransactions for a party.
(3) "Beneficiary" means a person named as one to whom sums ondeposit in an account are payable on request after death of all parties or forwhom a party is named as trustee.
(4) "Devisee" means any person designated in a will toreceive a testamentary disposition of real or personal property.
(5) "Depository institution" means an organization authorizedto receive deposits and to do business under state or federal laws relating tofinancial institutions, and credit unions, and includes a bank, trust company,savings bank, building and loan association, savings and loan company orassociation.
(6) "Heirs" means those persons, including a survivingspouse, who are entitled under the statutes of intestate succession to theproperty of a decedent.
(7) "Multiple-person" or "Multiple-party account" means anaccount payable on request to one or more parties, whether or not a right ofsurvivorship is mentioned.
(8) "Party" means a person who, by the terms of an account,has a present right, subject to request, to payment from the account other thanas a beneficiary or agent.
(9) "Payment" means payment of sums on deposit and includeswithdrawal, payment to a party or third person pursuant to check or otherrequest, and a pledge of sums on deposit by a party, or a set-off, reduction,or other disposition of all or part of an account pursuant to a pledge.
(10) "Personal representative" includes executor,administrator, successor or other court appointed fiduciary, and persons whoperform substantially the same function under the law governing decedent'sestates.
(11) "POD designation" means the designation of: (i) abeneficiary in an account payable on request to one party during his or herlifetime and on his or her death to one or more beneficiaries; or to one ormore parties during their lifetimes and on death of all of them to one or morebeneficiaries; or (ii) a beneficiary in an account in the name of one or moreparties as trustee for one or more beneficiaries if the relationship isestablished by the terms of the account and there is no trust property otherthan the sums on deposit in the account, whether or not payment to thebeneficiary is mentioned.
(12) "Receive" as it relates to notice to a depositoryinstitution, means receipt in the principal office or branch office of thedepository institution in which the account is established, but if the terms ofthe account require notice at a particular place, in the place required.
(13) "Request" means a request for payment complying with allterms of the account, including special requirements concerning necessarysignatures and regulations of the depository institution; but, for purposes ofthis section if terms of the account condition payment on advance notice, arequest for payment is treated as immediately effective and a notice of intentto withdraw is treated as a request for payment.
(14) "State" includes any state of the United States, theDistrict of Columbia, the Commonwealth of Puerto Rico, and any territory orpossession subject to the legislative authority of the United States.
(15) "Successors" means those persons, other than creditors,who are entitled to property of a decedent under the decedent's will, byintestacy or otherwise.
(16) "Sums on deposit" means the balance payable on anaccount, including interest and dividends earned, whether or not included inthe current balance, and any deposit life insurance proceeds added to theaccount by reason of death of a party.
(17) "Terms of the account" includes the deposit agreementand other terms and conditions, including the form, of the contract of deposit.
(b) Scope. This section applies to accounts in thisstate. This section does not apply to:
(1) An account established for a partnership, joint venture,or other organization for a business purpose;
(2) An account controlled by one or more persons as an agentor trustee for a corporation, unincorporated association, or charitable orcivic organization; or
(3) A fiduciary or trust account in which the relationship isestablished other than by the terms of the account.
(1) An account may be for a single party or multiple parties.A multiple-party account may be with or without a right of survivorship betweenthe parties. Subject to subsection (h)(3), either a single-party account or amultiple-party account may have a POD designation.
(2) An account established before, on, or after the effectivedate of this section, whether in the form prescribed in subsection (d) or inany other form, is either a single-party account or a multiple-party account,with or without right of survivorship, and with or without a POD designation,within the meaning of this section is governed by this subsection.
(1) A contract of deposit that contains provisions insubstantially the following form establishes the type of account provided; andthe account is governed by the provisions of this section applicable to anaccount of that type:
UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM
PARTIES [Name One or More Parties]:
OWNERSHIP [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – Party's own account
]]]]]]]] MULTIPLE-PARTY ACCOUNT – Parties' own accountin proportion to net contributions unless there is clear and convincingevidence of a different intent.
RIGHTS AT DEATH [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – At death of party,ownership passes as part of party's estate.
]]]]]]]] SINGLE-PARTY ACCOUNT WITH POD (PAY ON DEATH)DESIGNATION – At death of party, ownership passes to POD beneficiary orbeneficiaries, equally, and is not part of party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP– At death of party, ownership passes to surviving party or parties.
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIPAND POD (PAY ON DEATH) DESIGNATION – At death of last surviving party,ownership passes to POD beneficiary or beneficiaries, equally, and is not partof last surviving party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP– At death of party, deceased party's ownership passes as part of deceasedparty's estate.
(2) A contract of deposit that does not contain provisions insubstantially the form provided in subsection (d)(1) is governed by theprovisions of this section applicable to the type of account that most nearlyconforms to the depositor's intent.
(1) By a writing signed by all parties, the parties maydesignate another person as agent of all parties on an account.
(2) Unless the terms of an agency designation provide thatthe agent's authority terminates on disability or incapacity of a party, theagent's authority survives such disability or incapacity. The agent may act fora disabled or incapacitated party until the authority of the agent isterminated.
(3) Death of the sole party or last surviving partyterminates the authority of an agent.
(f) Applicability of Parts. The provisions of Part IIconcerning beneficial ownership as between parties or as between parties andbeneficiaries apply only to controversies between those persons and theircreditors and other successors, and do not apply to the right of those personsto payment as determined by the terms of the account. Part III governs theliability and set-off rights of depository institutions that make paymentspursuant to it.
Part II. Ownership as Between Parties and Others
(1) In this subsection, "net contribution" of a party meansthe sum of all deposits to an account made by or for the party, less allpayments from the account made to or for the party which have not been paid toor applied to the use of another party and a proportionate share of any chargesdeducted from the account, plus a proportionate share of any interest ordividends earned, whether or not included in the current balance. The termincludes any deposit life insurance proceeds added to the account by reason ofdeath of the party whose net contribution is in question.
(2) During the lifetime of all parties, an account belongs tothe parties in proportion to the net contribution of each to the sums ondeposit, unless there is clear and convincing evidence of a different intent.As between parties married to each other, in the absence of proof otherwise,the net contribution of each is presumed to be an equal amount.
(3) A beneficiary in an account having a POD designation hasno right to sums on deposit during the lifetime of any party.
(1) Except as otherwise provided in this section, on death ofa party sums on deposit in a multiple-party account belong to the survivingparty or parties. If two (2) or more parties survive and one is the survivingspouse of the decedent, the amount to which the decedent, immediately beforedeath, was beneficially entitled under subsection (g) belongs to the survivingspouse. If two (2) or more parties survive and none is the surviving spouse ofthe decedent, the amount to which the decedent, immediately before death, wasbeneficially entitled under subsection (g) belongs to the surviving parties inequal shares, and augments the proportion to which each survivor, immediatelybefore the decedent's death, was beneficially entitled under subsection (g),and the right of survivorship continues between the surviving parties.
(2) In an account with a POD designation:
(i) On death of one of two (2) or more parties, the rights insums on deposit are governed by subsection (h)(1).
(ii) On death of the sole party or the last survivor of two(2) or more parties, sums on deposit belong to the surviving beneficiary orbeneficiaries. If two (2) or more beneficiaries survive, sums on deposit belongto them in equal and undivided shares, and there is no right of survivorship inthe event of death of a beneficiary thereafter. If no beneficiary survives,sums on deposit belong to the estate of the last surviving party.
(3) Sums on deposit in a single-party account without a PODdesignation, or in a multiple-party account that, by the terms of the account,is without right of survivorship, are not affected by death of a party, but theamount of which the decedent, immediately before death, was beneficiallyentitled under subsection (g) herein is transferred as part of the decedent'sestate. A POD designation in a multiple-party account without right ofsurvivorship is ineffective. For purposes of this section, designation of anaccount as a tenancy in common establishes that the account is without right ofsurvivorship.
(4) The ownership right of a surviving party or beneficiary,or of the decedent's estate, in sums on deposit is subject to requests forpayment made by a party before the party's death, whether paid by thedepository institution before or after death, or unpaid. The surviving party orbeneficiary, or the decedent's estate, is liable to the payee of an unpaidrequest for payment. The liability is limited to a proportionate share of theamount transferred under this section, to the extent necessary to discharge therequest for payment.
(i) Alteration of rights. Rights at death of a partyunder subsection (h) are determined by the terms of the account at the death ofthe party. A party may alter the terms of the account by a notice signed by theparty and given to the depository institution to change the terms of theaccount or to stop or vary payment under the terms of the account. To beeffective, the notice must be received by the financial institution during theparty's lifetime. A right of survivorship, arising from the express terms ofthe account, subsection (h), or a POD designation, may not be altered by will.
(j) Accounts and transfers nontestamentary. A transferresulting from the application of subsection (h) is effective by reason of theterms of the account involved and this section and is not testamentary orsubject to estate administration.
Part III. Protection of Depository Institutions
(k) Authority of depository institution. A depositoryinstitution may enter into a contract of deposit for a multiple-party accountto the same extent it may enter into a contract of deposit for a single-partyaccount, and may provide for a POD designation in either a single-party accountor a multiple-party account. A depository institution need not inquire as tothe source of a deposit to an account or as to the proposed application of apayment from an account.
(l) Payment on multiple-party account. A depositoryinstitution, on request, may pay sums on deposit in a multiple-party account to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when payment is requested and whetheror not the party making the request survives another party; or
(2) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary,unless the account is without right of survivorship under subsection (h).
(m) Payment on POD designation. A depositoryinstitution, on request, may pay sums on deposit in an account with a PODdesignation to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when the payment is requested andwhether or not a party survives another party;
(2) The beneficiary or beneficiaries, if proof of death ispresented to the depository institution showing that the beneficiary orbeneficiaries survived all persons named as parties; or
(3) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party, if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary.
(n) Payment to designated agent. A depositoryinstitution, on request of an agent under a power of attorney or other agencydesignation for an account, may pay to the agent sums on deposit in theaccount, whether or not a party is disabled, incapacitated, or deceased whenthe request is made or received, and whether or not the authority of the agentterminates on the disability or incapacity of a party.
(o) Payment to minor. If a depository institution isrequired or permitted to make payment pursuant to this chapter to a minordesignated as a beneficiary, payment may be made pursuant to the UniformTransfers to Minors Act.
(1) Payment made pursuant to this section in accordance withthe terms of the account discharges the depository institution from all claimsfor amounts so paid, whether or not the payment is consistent with thebeneficial ownership of the account as between parties, beneficiaries, or theirsuccessors. Payment may be made whether or not a party, beneficiary, or agentis disabled, incapacitated, or deceased when payment is requested, received, ormade.
(2) Protection under this section does not extend to paymentsmade after a depository institution has received written notice from a party,or from the personal representative, surviving spouse, or heir or devisee of adeceased party, to the effect that payments in accordance with the terms of theaccount, including one having an agency designation, should not be permitted,and the depository institution has had a reasonable opportunity to act on itwhen the payment is made. Unless the notice is withdrawn by the person givingit, the successor of any deceased party must concur in request for payment ifthe depository institution is to be protected under this section. Unless adepository institution has been served with process in an action or proceeding,no other notice or other information shown to have been available to thedepository institution affects its right to protection under this section.
(3) A depository institution that receives written noticepursuant to this section or otherwise has reason to believe that a disputeexists as to the rights of the parties may refuse, without liability, to makepayments in accordance with the terms of the account.
(4) Protection of a depository institution under this sectiondoes not affect the rights of parties in disputes between themselves or theirsuccessors concerning the beneficial ownership of sums on deposit in accountsor payments made from accounts.
(q) Set-off. Without qualifying any other statutoryright to set-off or lien and subject to any contractual provision, if a partyis indebted to a depository institution, the institution has a right to set-offagainst the account. The amount of the account subject to set-off is theproportion to which the party is, or immediately before death was, beneficiallyentitled under subsection (g) or, in the absence of proof of that proportion,an equal share with all parties.
§ 19-9-14.1 Uniform multiple-personaccounts. – Part I. Definitions and General Provisions =nl
(a) Definitions. For purposes of this section thefollowing words and phrases shall have the following meanings, unless thecontext indicates another meaning:
(1) "Account" means a contract of deposit between a depositorand a depository institution, and includes a checking account, savings account,certificate of deposit, and share account.
(2) "Agent" means a person authorized to make accounttransactions for a party.
(3) "Beneficiary" means a person named as one to whom sums ondeposit in an account are payable on request after death of all parties or forwhom a party is named as trustee.
(4) "Devisee" means any person designated in a will toreceive a testamentary disposition of real or personal property.
(5) "Depository institution" means an organization authorizedto receive deposits and to do business under state or federal laws relating tofinancial institutions, and credit unions, and includes a bank, trust company,savings bank, building and loan association, savings and loan company orassociation.
(6) "Heirs" means those persons, including a survivingspouse, who are entitled under the statutes of intestate succession to theproperty of a decedent.
(7) "Multiple-person" or "Multiple-party account" means anaccount payable on request to one or more parties, whether or not a right ofsurvivorship is mentioned.
(8) "Party" means a person who, by the terms of an account,has a present right, subject to request, to payment from the account other thanas a beneficiary or agent.
(9) "Payment" means payment of sums on deposit and includeswithdrawal, payment to a party or third person pursuant to check or otherrequest, and a pledge of sums on deposit by a party, or a set-off, reduction,or other disposition of all or part of an account pursuant to a pledge.
(10) "Personal representative" includes executor,administrator, successor or other court appointed fiduciary, and persons whoperform substantially the same function under the law governing decedent'sestates.
(11) "POD designation" means the designation of: (i) abeneficiary in an account payable on request to one party during his or herlifetime and on his or her death to one or more beneficiaries; or to one ormore parties during their lifetimes and on death of all of them to one or morebeneficiaries; or (ii) a beneficiary in an account in the name of one or moreparties as trustee for one or more beneficiaries if the relationship isestablished by the terms of the account and there is no trust property otherthan the sums on deposit in the account, whether or not payment to thebeneficiary is mentioned.
(12) "Receive" as it relates to notice to a depositoryinstitution, means receipt in the principal office or branch office of thedepository institution in which the account is established, but if the terms ofthe account require notice at a particular place, in the place required.
(13) "Request" means a request for payment complying with allterms of the account, including special requirements concerning necessarysignatures and regulations of the depository institution; but, for purposes ofthis section if terms of the account condition payment on advance notice, arequest for payment is treated as immediately effective and a notice of intentto withdraw is treated as a request for payment.
(14) "State" includes any state of the United States, theDistrict of Columbia, the Commonwealth of Puerto Rico, and any territory orpossession subject to the legislative authority of the United States.
(15) "Successors" means those persons, other than creditors,who are entitled to property of a decedent under the decedent's will, byintestacy or otherwise.
(16) "Sums on deposit" means the balance payable on anaccount, including interest and dividends earned, whether or not included inthe current balance, and any deposit life insurance proceeds added to theaccount by reason of death of a party.
(17) "Terms of the account" includes the deposit agreementand other terms and conditions, including the form, of the contract of deposit.
(b) Scope. This section applies to accounts in thisstate. This section does not apply to:
(1) An account established for a partnership, joint venture,or other organization for a business purpose;
(2) An account controlled by one or more persons as an agentor trustee for a corporation, unincorporated association, or charitable orcivic organization; or
(3) A fiduciary or trust account in which the relationship isestablished other than by the terms of the account.
(1) An account may be for a single party or multiple parties.A multiple-party account may be with or without a right of survivorship betweenthe parties. Subject to subsection (h)(3), either a single-party account or amultiple-party account may have a POD designation.
(2) An account established before, on, or after the effectivedate of this section, whether in the form prescribed in subsection (d) or inany other form, is either a single-party account or a multiple-party account,with or without right of survivorship, and with or without a POD designation,within the meaning of this section is governed by this subsection.
(1) A contract of deposit that contains provisions insubstantially the following form establishes the type of account provided; andthe account is governed by the provisions of this section applicable to anaccount of that type:
UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM
PARTIES [Name One or More Parties]:
OWNERSHIP [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – Party's own account
]]]]]]]] MULTIPLE-PARTY ACCOUNT – Parties' own accountin proportion to net contributions unless there is clear and convincingevidence of a different intent.
RIGHTS AT DEATH [Select One And Initial]:
]]]]]]]] SINGLE-PARTY ACCOUNT – At death of party,ownership passes as part of party's estate.
]]]]]]]] SINGLE-PARTY ACCOUNT WITH POD (PAY ON DEATH)DESIGNATION – At death of party, ownership passes to POD beneficiary orbeneficiaries, equally, and is not part of party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP– At death of party, ownership passes to surviving party or parties.
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIPAND POD (PAY ON DEATH) DESIGNATION – At death of last surviving party,ownership passes to POD beneficiary or beneficiaries, equally, and is not partof last surviving party's estate.
[Name One Or More Beneficiaries]:
]]]]]]]] MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP– At death of party, deceased party's ownership passes as part of deceasedparty's estate.
(2) A contract of deposit that does not contain provisions insubstantially the form provided in subsection (d)(1) is governed by theprovisions of this section applicable to the type of account that most nearlyconforms to the depositor's intent.
(1) By a writing signed by all parties, the parties maydesignate another person as agent of all parties on an account.
(2) Unless the terms of an agency designation provide thatthe agent's authority terminates on disability or incapacity of a party, theagent's authority survives such disability or incapacity. The agent may act fora disabled or incapacitated party until the authority of the agent isterminated.
(3) Death of the sole party or last surviving partyterminates the authority of an agent.
(f) Applicability of Parts. The provisions of Part IIconcerning beneficial ownership as between parties or as between parties andbeneficiaries apply only to controversies between those persons and theircreditors and other successors, and do not apply to the right of those personsto payment as determined by the terms of the account. Part III governs theliability and set-off rights of depository institutions that make paymentspursuant to it.
Part II. Ownership as Between Parties and Others
(1) In this subsection, "net contribution" of a party meansthe sum of all deposits to an account made by or for the party, less allpayments from the account made to or for the party which have not been paid toor applied to the use of another party and a proportionate share of any chargesdeducted from the account, plus a proportionate share of any interest ordividends earned, whether or not included in the current balance. The termincludes any deposit life insurance proceeds added to the account by reason ofdeath of the party whose net contribution is in question.
(2) During the lifetime of all parties, an account belongs tothe parties in proportion to the net contribution of each to the sums ondeposit, unless there is clear and convincing evidence of a different intent.As between parties married to each other, in the absence of proof otherwise,the net contribution of each is presumed to be an equal amount.
(3) A beneficiary in an account having a POD designation hasno right to sums on deposit during the lifetime of any party.
(1) Except as otherwise provided in this section, on death ofa party sums on deposit in a multiple-party account belong to the survivingparty or parties. If two (2) or more parties survive and one is the survivingspouse of the decedent, the amount to which the decedent, immediately beforedeath, was beneficially entitled under subsection (g) belongs to the survivingspouse. If two (2) or more parties survive and none is the surviving spouse ofthe decedent, the amount to which the decedent, immediately before death, wasbeneficially entitled under subsection (g) belongs to the surviving parties inequal shares, and augments the proportion to which each survivor, immediatelybefore the decedent's death, was beneficially entitled under subsection (g),and the right of survivorship continues between the surviving parties.
(2) In an account with a POD designation:
(i) On death of one of two (2) or more parties, the rights insums on deposit are governed by subsection (h)(1).
(ii) On death of the sole party or the last survivor of two(2) or more parties, sums on deposit belong to the surviving beneficiary orbeneficiaries. If two (2) or more beneficiaries survive, sums on deposit belongto them in equal and undivided shares, and there is no right of survivorship inthe event of death of a beneficiary thereafter. If no beneficiary survives,sums on deposit belong to the estate of the last surviving party.
(3) Sums on deposit in a single-party account without a PODdesignation, or in a multiple-party account that, by the terms of the account,is without right of survivorship, are not affected by death of a party, but theamount of which the decedent, immediately before death, was beneficiallyentitled under subsection (g) herein is transferred as part of the decedent'sestate. A POD designation in a multiple-party account without right ofsurvivorship is ineffective. For purposes of this section, designation of anaccount as a tenancy in common establishes that the account is without right ofsurvivorship.
(4) The ownership right of a surviving party or beneficiary,or of the decedent's estate, in sums on deposit is subject to requests forpayment made by a party before the party's death, whether paid by thedepository institution before or after death, or unpaid. The surviving party orbeneficiary, or the decedent's estate, is liable to the payee of an unpaidrequest for payment. The liability is limited to a proportionate share of theamount transferred under this section, to the extent necessary to discharge therequest for payment.
(i) Alteration of rights. Rights at death of a partyunder subsection (h) are determined by the terms of the account at the death ofthe party. A party may alter the terms of the account by a notice signed by theparty and given to the depository institution to change the terms of theaccount or to stop or vary payment under the terms of the account. To beeffective, the notice must be received by the financial institution during theparty's lifetime. A right of survivorship, arising from the express terms ofthe account, subsection (h), or a POD designation, may not be altered by will.
(j) Accounts and transfers nontestamentary. A transferresulting from the application of subsection (h) is effective by reason of theterms of the account involved and this section and is not testamentary orsubject to estate administration.
Part III. Protection of Depository Institutions
(k) Authority of depository institution. A depositoryinstitution may enter into a contract of deposit for a multiple-party accountto the same extent it may enter into a contract of deposit for a single-partyaccount, and may provide for a POD designation in either a single-party accountor a multiple-party account. A depository institution need not inquire as tothe source of a deposit to an account or as to the proposed application of apayment from an account.
(l) Payment on multiple-party account. A depositoryinstitution, on request, may pay sums on deposit in a multiple-party account to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when payment is requested and whetheror not the party making the request survives another party; or
(2) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary,unless the account is without right of survivorship under subsection (h).
(m) Payment on POD designation. A depositoryinstitution, on request, may pay sums on deposit in an account with a PODdesignation to:
(1) One or more of the parties, whether or not another partyis disabled, incapacitated, or deceased when the payment is requested andwhether or not a party survives another party;
(2) The beneficiary or beneficiaries, if proof of death ispresented to the depository institution showing that the beneficiary orbeneficiaries survived all persons named as parties; or
(3) The personal representative, if any, or, if there isnone, the heirs or devisees of a deceased party, if proof of death is presentedto the depository institution showing that the deceased party was the survivorof all other persons named on the account either as a party or beneficiary.
(n) Payment to designated agent. A depositoryinstitution, on request of an agent under a power of attorney or other agencydesignation for an account, may pay to the agent sums on deposit in theaccount, whether or not a party is disabled, incapacitated, or deceased whenthe request is made or received, and whether or not the authority of the agentterminates on the disability or incapacity of a party.
(o) Payment to minor. If a depository institution isrequired or permitted to make payment pursuant to this chapter to a minordesignated as a beneficiary, payment may be made pursuant to the UniformTransfers to Minors Act.
(1) Payment made pursuant to this section in accordance withthe terms of the account discharges the depository institution from all claimsfor amounts so paid, whether or not the payment is consistent with thebeneficial ownership of the account as between parties, beneficiaries, or theirsuccessors. Payment may be made whether or not a party, beneficiary, or agentis disabled, incapacitated, or deceased when payment is requested, received, ormade.
(2) Protection under this section does not extend to paymentsmade after a depository institution has received written notice from a party,or from the personal representative, surviving spouse, or heir or devisee of adeceased party, to the effect that payments in accordance with the terms of theaccount, including one having an agency designation, should not be permitted,and the depository institution has had a reasonable opportunity to act on itwhen the payment is made. Unless the notice is withdrawn by the person givingit, the successor of any deceased party must concur in request for payment ifthe depository institution is to be protected under this section. Unless adepository institution has been served with process in an action or proceeding,no other notice or other information shown to have been available to thedepository institution affects its right to protection under this section.
(3) A depository institution that receives written noticepursuant to this section or otherwise has reason to believe that a disputeexists as to the rights of the parties may refuse, without liability, to makepayments in accordance with the terms of the account.
(4) Protection of a depository institution under this sectiondoes not affect the rights of parties in disputes between themselves or theirsuccessors concerning the beneficial ownership of sums on deposit in accountsor payments made from accounts.
(q) Set-off. Without qualifying any other statutoryright to set-off or lien and subject to any contractual provision, if a partyis indebted to a depository institution, the institution has a right to set-offagainst the account. The amount of the account subject to set-off is theproportion to which the party is, or immediately before death was, beneficiallyentitled under subsection (g) or, in the absence of proof of that proportion,an equal share with all parties.
