NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 779

SENATE BILL 76

 

 

AN ACT TO AMEND G.S. 41-2.1 RELATING TO THE DISPOSITION TO THE SURVIVOR OF AN UNWITHDRAWN DEPOSIT IN INSTANCES OF A JOINT DEPOSIT ACCOUNT CREATED BY WRITTEN AGREEMENT.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 41-2.1, as the same appears in the 1961 Cumulative Supplement to the General Statutes, is rewritten to read as follows:

"§ 41-2.1.  Right of Survivorship in Bank Deposits Created by Written Agreement. (a) A deposit account may be established with a banking institution in the names of two or more persons, payable to either or the survivor or survivors, with incidents as provided by subsection (b) of this Section, when both or all parties have signed a written agreement, either on the signature card or by separate instrument, expressly providing for the right of survivorship.

(b)        A deposit account established under subsection (a) of this Section shall have the following incidents:

(1)        Either party to the agreement may add to or draw upon any part or all of the deposit account, and any withdrawal by or upon the order of either party shall be a complete discharge of the banking institution with respect to the sum withdrawn.

(2)        During the lifetime of both or all the parties, the deposit account shall be subject to their respective debts to the extent that each has contributed to the unwithdrawn account. In the event their respective contributions are not determined, the unwithdrawn fund shall be deemed owned by both or all equally.

(3)        Upon the death of either or any party to the agreement, the survivor, or survivors, becomes the sole owner, or owners, of the entire unwithdrawn deposit subject to the claims of the creditors of the deceased and to governmental rights in that portion of the unwithdrawn deposit which would belong to the deceased had said unwithdrawn deposit been divided equally between both or among all the joint tenants at the time of the death of said deceased.

(4)        Upon the death of one of the joint tenants provided herein the banking institution in which said joint deposit is held shall pay to the legal representative of the deceased, the portion of the unwithdrawn deposit made subject to the claims of the creditors of the deceased and to governmental rights as provided in subparagraph (3) above, and may pay the remainder to the surviving joint tenant or joint tenants. Said legal representative shall hold the portion of said unwithdrawn deposit paid to him and not use the same for the payment of the claims of the creditors of the deceased or governmental rights unless and until all other personal assets of the estate have been exhausted, and shall then use so much thereof as may be necessary to pay any remaining debts of the deceased or governmental claims. Any part of said unwithdrawn deposit not used for the payment of such debts or charges of administration of the deceased shall, upon the settlement of the estate, be paid to the surviving joint tenant or tenants.

(c)        This Section shall be subject to the provisions of law applicable to transfers in fraud of creditors.

(d)        This Section shall not be deemed exclusive; deposit accounts not conforming to this Section, and other property jointly owned, shall be governed by other applicable provisions of the law.

(e)        As used in this Section:

(1)        'Banking institution' includes commercial banks, industrial banks, building and loan associations, savings and loan associations, and credit unions.

(2)        'Deposit account' includes both time and demand deposits in commercial banks and industrial banks, installment shares, optional shares and fully paid share certificates in building and loan associations and savings and loan associations, and deposits and shares in credit unions.

(3)        'Unwithdrawn deposit' shall be the amount in the deposit account held by the banking institution at the time of the death of the joint tenant; provided, however, that the banking institution shall not be held responsible for any amount properly paid out of said account prior to notice of such death.

(f)         Nothing herein contained shall be construed to repeal or modify any of the provisions of G.S. 105-24 relating to the administration of the inheritance laws or any other provisions of the law relating to inheritance taxes.

(g)        A deposit account under subsection (a) of this Section may be established by a written agreement in substantially the following form:

'We, the undersigned, hereby agree that all sums deposited at any time, including sums deposited prior to this date, in the _________________________ (name of institution) in the joint account of the undersigned, shall be held by us as co-owners with the right of survivorship, regardless of whose funds are deposited in said account and regardless of who deposits the funds in said account. Either or any of us shall have the right to draw upon said account, without limit, and in case of the death of either or any of us the survivor or survivors shall be the sole owner or owners of the entire account. This agreement is governed by the provisions of Section 41-2.1 of the General Statutes of North Carolina.

Witness our hands and seals, this ___ day of _______ , 19___.

__________________(Seal)

__________________(Seal)

__________________(Seal)

__________________(Seal).'"

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1963.