§ 28-7-1-26.5 — Refusal to make payment from account

Indiana § 28-7-1-26.5

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 1: Credit Unions

Text

5. (a) A credit union may refuse to make a
payment from an account to a person claiming an interest in the
account if the credit union:
(1) is uncertain under the agreement governing the account of
who is entitled to receive the payment; or
(2) has actual knowledge of a dispute between any account
owners, beneficiaries with present vested rights in the account, or
other persons concerning ownership of the money in the account,
the proposed withdrawal, or any previous withdrawals from the
account.
(b) If a credit union refuses to make a payment under subsection (a),
the credit union:
(1) shall notify, in writing, the account owners, beneficiaries with
present vested rights in the account, and other persons claiming
an interest in the account of the basis for the credit union's
refusal; and
(2) may refuse to make the payment until all interested parties
consent in writing to the requested payment or a court with
jurisdiction orders the credit union to make the payment.
(c) The credit union is not liable in damages as a result of an action
taken under this section.

Legislative History

As added by P.L.35-2010, SEC.166.