§ 23-47-208 — Deferred income investment accounts

(a) On behalf of depositors, state banks may create and open deferred income investment accounts of the following types: (1) The depositor makes a deposit of a lump sum, and the bank agrees to pay the depositor an agreed monthly or annual payment for life or for a term certain beginning immediately or at some time in the future; and (2) The depositor makes a deposit periodically on an agreed basis, and the bank agrees to pay the depositor, on a periodic basis beginning at some time in the future for life or a term certain, an agreed monthly or annual payment. (b) The depositor and the state bank may agree that: (1) A partial refund of the deposit may occur upon specified events, or no refund may occur; (2) The depositor may elect to stop payments from the bank for a term; (3) The payments may go to designated beneficiaries in all cases both before and after death of the depositor; (4) The amount of the payments to the bank and to the depositor will be fixed for the term agreed upon; or (5) The payment to the depositor will be determined by an index or criteria beyond the control of the depositor or bank. (c) The Bank Commissioner shall promulgate such rules as may be necessary and proper to carry out the intent and purpose of this section and to issue cease and desist orders to any state bank found to be violating this section or State Bank Department rules. These department rules shall incorporate §§ 23-81-121 - 23-81-128 , where applicable. (d) The deferred income investment accounts allowed in this section shall be exempt from §§ 23-42-501 and 23-42-502 . (e) It is the intent of this section that distributions from deferred income investment accounts be treated as nontaxable to the greatest extent possible under section 72 of the Internal Revenue Code of 1986.

Legislative History

Amended by Act 2019, No. 315,§ 2536, eff. 7/24/2019. Acts 1997, No. 89, § 1.