§ 675 — Joint deposits and shares; ownership and payment

New York § 675

• Jurisdiction: New York
• Law BNK: Banking
• Art. 13-E: Joint Deposits and Shares

Text

§ 675. Joint deposits and shares; ownership and payment. (a) When a\ndeposit of cash, securities, or other property has been made or shall\nhereafter be made in or with any banking organization or foreign banking\ncorporation transacting business in this state, or shares shall have\nbeen already issued or shall be hereafter issued, in any savings and\nloan association or credit union transacting business in this state, in\nthe name of such depositor or shareholder and another person and in form\nto be paid or delivered to either, or the survivor of them, such deposit\nor shares and any additions thereto made, by either of such persons,\nafter the making thereof, shall become the property of such persons as\njoint tenants and the same, together with all additions and accruals\nthereon, shall be held for the exclusive use of the persons so named,\nand may be paid or delivered to either during the lifetime of both or to\nthe survivor after the death of one of them, and such payment or\ndelivery and the receipt or acquittance of the one to whom such payment\nor delivery is made, shall be a valid and sufficient release and\ndischarge to the banking organization or foreign banking corporation for\nall payments or deliveries made on account of such deposit or shares\nprior to the receipt by the banking organization or foreign banking\ncorporation of notice in writing signed by any one of such joint\ntenants, not to pay or deliver such deposit or shares and the additions\nand accruals thereon in accordance with the terms thereof, and after\nreceipt of any such notice, the banking organization or foreign banking\ncorporation may require the receipt or acquittance of both such joint\ntenants for any further payments or delivery.\n (b) The making of such deposit or the issuance of such shares in such\nform shall, in the absence of fraud or undue influence, be prima facie\nevidence, in any action or proceeding to which the banking organization,\nforeign banking corporation, surviving depositor or shareholder is a\nparty, of the intention of both depositors or shareholders to create a\njoint tenancy and to vest title to such deposit or shares, and additions\nand accruals thereon, in such survivor. The burden of proof in refuting\nsuch prima facie evidence is upon the party or parties challenging the\ntitle of the survivor.\n (c) 1. The superintendent of financial services shall promulgate and\nmay from time to time amend rules and regulations which require that the\njoint tenants of an account established on or after the date on which\nthe rule or regulation becomes effective and representing any deposit or\nshares governed by the foregoing provisions of this section, shall, at\nthe time the account is established be informed of the terms and\nconditions of the account including the relationship and consequences\nbetween the parties in the account and the responsibilities of the\ninstitution with which the account is established.\n 2. This subdivision or any rule or regulation thereunder shall not be\ndeemed or construed as increasing or diminishing the rights or liability\nof any person, or other entity.\n