§412:4-105 Accounts held in more than one name. Any deposit account held in the names of two or more persons may be paid, on request and according to its terms, to any one or more of the persons. A financial institution shall not be required to inquire as to the source of funds received for deposit to an account in the name of more than one person, or to inquire as to the proposed application of any sum paid from the account. Unless the terms of the deposit account clearly require the signature of more than one person for payment, transfer or withdrawal:
(1) Payment, transfer or withdrawal of funds therefrom by or on the order of any of the persons shall release and discharge the financial institution from any liability for the paid, transferred or withdrawn funds with respect to all of the persons, and no action at law or equity may be maintained against the financial institution for payment, transfer or withdrawal made in accordance with this section; and
(2) If the account is pledged, but not all the owners of the account sign the pledge, the pledge shall nevertheless be valid as to all funds in the account, and the pledge shall not operate to sever or terminate the form of multiple ownership of the account. [L 1993, c 350, pt of §1]
Cross References
Multiple-party accounts, see chapter 560, article VI.
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