§ 5-24-21 — Authority of Financial Institution

Alabama § 5-24-21

• Jurisdiction: Alabama
• Title 5: Banks and Financial Institutions
• Ch. 24: Uniform Multiple-Person Accounts Act
• Art. 3: Protection of Financial Institutions

Text

A financial institution may enter into a contract of deposit for a multiple-party account to the same extent it may enter into a contract of deposit for a single-party account, and may provide for a POD designation and an agency designation in either a single-party account or a multiple-party account. A financial institution need not inquire as to the source of a deposit to an account or as to the proposed application of a payment from an account. A financial institution may answer “indebted”, or a similar answer, for the entire amount of an account upon receipt of a garnishment, levy, or similar process involving a party and pay the entire amount in the account pursuant to the process even though the process is issued in the name of fewer than all parties. The parties on the account may assert their claims to ownership of the account in the proceedings out of which the process arose or was issued.

Legislative History

(Acts 1997, No. 97-644, p. 1177, §1.)