As used in Sections 45-6-201 through 45-6-227 NMSA 1978:

A. "account" means a contract of deposit between a depositor and a financial institution, and includes a checking account, savings account, certificate of deposit and share account;

B. "agent" means a person authorized to make account transactions for a party;

C. "beneficiary" means a person named as one to whom sums on deposit in an account are payable on request after death of all parties or for whom a party is named as trustee;

D. "financial institution" means an organization authorized to do business under state or federal laws relating to financial institutions, and includes a bank, trust company, savings bank, building and loan association, savings and loan company or association and credit union;

E. "multiple-party account" means an account payable on request to one or more of two or more parties, whether or not a right of survivorship is mentioned;

F. "party" means a person who, by the terms of an account, has a present right, subject to request, to payment from the account other than as a beneficiary or agent;

G. "payment" of sums on deposit includes withdrawal, payment to a party or third person pursuant to check or other request and a pledge of sums on deposit by a party, or a set-off, reduction or other disposition of all or part of an account pursuant to a pledge;

H. "POD designation" means the designation of:

(1) a beneficiary in an account payable on request to one party during the party's lifetime and on the party's death to one or more beneficiaries, or to one or more parties during their lifetimes and on death of all of them to one or more beneficiaries; or

(2) a beneficiary in an account in the name of one or more parties as trustee for one or more beneficiaries if the relationship is established by the terms of the account and there is no subject of the trust other than the sums on deposit in the account, whether or not payment to the beneficiary is mentioned;

I. "receive", as it relates to notice to a financial institution, means receipt in the office or branch office of the financial institution in which the account is established, but if the terms of the account require notice at a particular place, in the place required;

J. "request" means a request for payment complying with all terms of the account, including special requirements concerning necessary signatures and regulations of the financial institution; but, for purposes of Sections 45-6-201 through 45-6-227 NMSA 1978, if terms of the account condition payment on advance notice, a request for payment is treated as immediately effective and a notice of intent to withdraw is treated as a request for payment;

K. "sums on deposit" means the balance payable on an account, including interest and dividends earned, whether or not included in the current balance, and any deposit life insurance proceeds added to the account by reason of death of a party; and

L. "terms of the account" includes the deposit agreement and other terms and conditions, including the form, of the contract of deposit.

History: 1978 Comp., § 45-6-201, enacted by Laws 1992, ch. 66, § 18.

Compiler's notes. — Laws 1992, ch. 66, § 71 repealed former 45-6-201 NMSA 1978, as enacted by Laws 1975, ch. 257, § 6-201, relating to provisions for payment or transfer at death, effective July 1, 1992. Laws 1992, ch. 66, § 18 enacted a new section, effective July 1, 1992. For present comparable provisions, see 45-6-101 NMSA 1978.

Cross references. — For definition of "POD", see 45-6-305 NMSA 1978.

Beneficiary mistakenly paid money must reimburse bank. — A POD (paid on death) beneficiary of a joint (now multiple-party) account who was mistakenly paid the money in the account upon the death of one of the two joint tenants was unjustly enriched. Although the bank may have been negligent in disbursing the funds, its negligence caused no harm to anyone except itself and the surviving joint tenant - certainly not to the POD beneficiary, who benefited at the bank's expense and had to make restitution. Sunwest Bank, N.A. v. Colucci, 1994-NMSC-027, 117 N.M. 373, 872 P.2d 346.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Manner and sufficiency of revocation of tentative ("Totten") trust of savings bank account, 38 A.L.R.2d 1243, 64 A.L.R.3d 221.

Payment of check drawn by one depositor after stop-payment order by a joint depositor, 55 A.L.R.2d 975.

Incompetency of joint depositor as affecting status and ownership of bank account, 62 A.L.R.2d 1091.

Fingerprints as signature, 72 A.L.R.2d 1267.

Bank's right to apply or set off deposit against debt of depositor not due at time of his death, 7 A.L.R.3d 908.

Bank's right to apply third person's funds, deposited in debtor's name, on debtor's obligation, 8 A.L.R.3d 235.

Joint bank account as subject to attachment, garnishment or execution by creditor of one of the joint depositors, 11 A.L.R.3d 1465.

Creation of joint savings account or savings certificate as gift to survivor, 43 A.L.R.3d 971.

Revocation of tentative ("Totten") trusts of savings bank account by inter vivos declaration or will, 46 A.L.R.3d 487.

Inclusion of funds in savings bank ("Totten") trust in determining surviving spouse's interest in decedent's estate, 64 A.L.R.3d 187.

Death of beneficiary as terminating or revoking trust of savings bank account over which settlor retains rights of withdrawal or revocation, 64 A.L.R.3d 221.

Revocation of tentative ("Totten") trust by pledging or otherwise employing account as collateral or security, 10 A.L.R.4th 1229.

Liability of bank to joint depositor of savings account for amounts withdrawn by other joint depositor without presentation of passbook, 35 A.L.R.4th 1094.

Payable-on-death savings account or certificate of deposit as will, 50 A.L.R.4th 272.

Joint bank account as subject to attachment, garnishment, or execution by creditor of one joint depositor, 86 A.L.R.5th 527.

9 C.J.S. Banks and Banking §§ 280, 332; 48A C.J.S. Joint Tenancy § 2.