§ 11-105-107 — Adverse claim deposits

(1) Notice to any bank of an adverse
claim to a deposit standing on its books to the credit of any person, or to securities
or other property deposited by any person with the bank, shall not be effectual to
cause said bank to recognize said adverse claimant, unless said adverse claimant
shall also either procure a restraining order, injunction, or other appropriate process
against and served upon said bank from a court of competent jurisdiction in an
action instituted by said adverse claimant wherein the person to whose credit the
deposit stands or for whose account the securities or other property are held is
made a party and served with summons or shall comply with subsection (2) of this
section.

(2) Such adverse claimant, in lieu of a court order, shall execute to said bank,
in form and amount and with sureties acceptable to it, a bond indemnifying said
bank from all liability, loss, damage, costs, and expenses, whether on account of
the payment of such adverse claim or the dishonor of the check or other order of
the person to whose credit the deposit stands on the books of said bank or on
account of the delivery of said securities or other property to the adverse claimant
or the refusal to comply with any order of the depositor of the securities or property
held, as the case may be.

(3) This section shall not apply in any instance where the person to whose
credit the deposit stands or for whose account the securities or other property is
held, is a fiduciary designated as such by words indicating the deposit or other
property is, or the securities are, held for the benefit of such adverse claimant, and
the facts showing reasonable cause of belief on the part of said claimant that the
fiduciary is about to misappropriate such deposit, securities, or other property are
made to appear by the affidavit of such claimant.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1115, � 3, effective July 1.