§ 30.1-31-19 — (6-226) Discharge

1. Payment made pursuant to sections 30.1-31-02 through 30.1-31-20 in accordance
with the terms of the 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 Unless the notice is withdrawn by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.