§ 15-15-226 — Discharge

(1) Payment made pursuant to this part 2 in
accordance with the type of account discharges the financial institution from all
claims for amounts so paid, whether or not the payment is consistent with the
beneficial ownership of the account as between parties, beneficiaries, or their
successors. Payment may be made whether or not a party, beneficiary, or agent is
disabled, incapacitated, or deceased when payment is requested, received, or
made.

(2) Protection under this section does not extend to payments made after a
financial institution has received written notice from a party, or from the personal
representative, surviving spouse, or heir or devisee of a deceased party, to the
effect that payments in accordance with the terms of the account, including one
having an agency designation, should not be permitted, and the financial institution
has had a reasonable opportunity to act on it when the payment is made. Unless the
notice is withdrawn by the person giving it, the successor of any deceased party
must concur in a request for payment if the financial institution is to be protected
under this section. Unless a financial institution has been served with process in an
action or proceeding, no other notice or other information shown to have been
available to the financial institution affects its right to protection under this section.

(3) A financial institution that receives written notice pursuant to this section
or otherwise has reason to believe that a dispute exists as to the rights of the
parties may refuse, without liability, to make payments in accordance with the
terms of the account.

(4) Protection of a financial institution under this section does not affect the
rights of parties in disputes between themselves or their successors concerning the
beneficial ownership of sums on deposit in accounts or payments made from
accounts.

Legislative History

Source: L. 90: Entire article R&RE, p. 916, � 1, effective July 1.