A.Share and deposit account proceeds that are payable to a beneficiary upon the death of the account owner shall be offered pursuant to the following provisions: 1. When shares are owned or a deposit has been made or shall hereafter be made in any credit union using the terms "Payable on Death" or "P.O.D.", such deposits shall be payable on the death of the account owner to one or more designated P.O.D. beneficiaries, or to an individual or individuals named beneficiary if living and if not living, to the estate of the deceased account holder, notwithstanding any provision to the contrary contained in Sections 41 through 57 of Title 84 of the Oklahoma Statutes. Each designated P.O.D. beneficiary shall be a trust, an individual, or a nonprofit organization exempt from taxation pursuant to
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A. Share and deposit account proceeds that are payable to a beneficiary upon the death of the account owner shall be offered pursuant to the following provisions: 1. When shares are owned or a deposit has been made or shall hereafter be made in any credit union using the terms "Payable on Death" or "P.O.D.", such deposits shall be payable on the death of the account owner to one or more designated P.O.D. beneficiaries, or to an individual or individuals named beneficiary if living and if not living, to the estate of the deceased account holder, notwithstanding any provision to the contrary contained in Sections 41 through 57 of Title 84 of the Oklahoma Statutes. Each designated P.O.D. beneficiary shall be a trust, an individual, or a nonprofit organization exempt from taxation pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3); 2. A share or deposit account with a P.O.D. designation shall constitute a contract between the account owner, (or owners, if more than one) and the credit union that upon the death of the last surviving owner of the account, and after payment of account proceeds to any secured party with a valid security interest in the account, the credit union will hold the funds for or pay them to the named primary beneficiary or beneficiaries, if living. If a primary beneficiary predeceases the account owner, the share of that primary beneficiary shall be distributed pursuant to either paragraph 4, 5, or 8 of this subsection, whichever is applicable; 3. Each P.O.D. beneficiary designated on a share or deposit account shall be a primary beneficiary unless specifically designated as a contingent beneficiary; 4. If there is only one primary P.O.D. beneficiary on a share or deposit account and that beneficiary is an individual, the account owner may designate one or more contingent beneficiaries for whom the funds shall be held or to whom the funds shall be paid if the primary beneficiary is not living when the last surviving owner of the account dies. If there is more than one primary P.O.D. beneficiary on a share or deposit account, contingent beneficiaries shall not be allowed on that account; 5. If the sole primary P.O.D. beneficiary is not living and one or more contingent beneficiaries have been designated as allowed by paragraph 4 of this subsection, the funds shall be held for or paid to the contingent beneficiaries who are alive at the time of the account owner's death in equal shares, and shall not belong to the estate of the deceased primary beneficiary or the estate of the deceased account holder. If neither the primary beneficiary nor any contingent beneficiary is living at the time of the account owner's death, the funds shall be paid to the account owner's estate; 6. In order to designate multiple primary P.O.D. beneficiaries for a share or deposit account, the account should be styled as follows: "(Name of Account Owner), payable on death (or P.O.D.) to (Name of Beneficiary), (Name of Beneficiary), and (Name of Beneficiary, in equal shares)."; 7. If only one primary P.O.D. beneficiary has been designated on a share or deposit account, the account owner may add the following, or words of similar meaning, in the style of the account or in the account agreement: "If the designated P.O.D. beneficiary is deceased, then payable on the death of the account owner to (Name of Beneficiary), (Name of Beneficiary), and (Name of Beneficiary), as contingent beneficiaries, in equal shares."; 8. Adjustments may be made in the styling, depending upon the number of owners of the account, to allow for survivorship rights, and the number of beneficiaries. It is to be understood that each beneficiary is entitled to a proportionate share of the account proceeds only after the death of the last surviving account owner, and after payment of account proceeds to any secured party with a valid security interest in the account. All designated primary P.O.D. beneficiaries shall have equal shares. All designated contingent P.O.D. beneficiaries shall have equal shares as if the sole primary beneficiary is deceased. In the event of the death of a beneficiary prior to the death of the account owner, the share of that beneficiary shall be divided among any surviving beneficiaries or distributed to contingent beneficiaries pursuant to paragraphs 4 and 5 of this subsection, if applicable. If no beneficiaries are alive at the time of the account owner's death, the funds shall be held for, or paid to, the estate of the deceased account owner; 9. A credit union may require the owner of an account to provide an address for any primary or contingent P.O.D. beneficiary. If the P.O.D. account is an interest-bearing account and the funds are not claimed by the P.O.D. beneficiary or beneficiaries within sixty (60) days after the death of the last surviving account holder, or after the credit union has notice of the death of the last surviving account holder, whichever is later, the credit union has the right to convert the account to a non-interest-bearing account; 10. No change in the designation of a named beneficiary shall be valid unless executed by the owner of the fund and in the form and manner prescribed by the credit union; however, this section shall be subject to the provisions of Section 178 of Title 15 of the Oklahoma Statutes. Until the death of the member or owner, the member or owner shall possess and may exercise all rights, respecting the shares or deposits, including the power to vote, pledge, withdraw, in whole or in part, make additions to, and to in any way deal with the shares or deposit. The receipt or acquittance of the member or owner shall be a valid and sufficient release and discharge of the credit union as to any payment to the member or owner; and 11. The receipt or acquittance of the named beneficiary so paid, or of the legal representative of the account owner's estate, in the event the beneficiary predeceased the account owner, shall be valid and sufficient release and discharge to the credit union for any payment so made; Subsequent to the effective date of this act, a credit union shall provide a member creating a P.O.D. account with a written notice that the distribution of the proceeds in the P.O.D. account shall be consistent with the provisions of this section. B. The provisions of this section shall apply to all forms of deposit accounts including, but not limited to, share accounts, transaction accounts, savings accounts, certificates of deposits, negotiable order of withdrawal (N.O.W.) accounts, and M.M.D.A. accounts.