§ 23-47-204 - Multiple-party deposits. - Arkansas Statutes

23-47-204. Multiple-party deposits.

(a) As used in this section, "multiple-party deposit account" means a deposit account established in the names of, payable to, or in a form subject to withdrawal by two (2) or more natural persons.

(b) (1) When opening a multiple-party deposit account or amending an existing deposit account so as to create a multiple-party deposit account, a bank shall utilize account documents which enable the depositor to designate ownership interest therein in terms substantially similar to one (1) or more of the following:

(A) Joint tenants with right of survivorship;

(B) Tenants in common;

(C) Tenants by the entirety;

(D) Payable on death;

(E) "Totten" or tentative trust; and

(F) Such other deposit designation as may be acceptable to the bank.

(2) Account documents which enable the depositor to indicate the depositor's intent of the ownership interest in any multiple-party deposit account may include any of the following:

(A) The signature card;

(B) The deposit agreement;

(C) A certificate of deposit;

(D) A document confirming purchase of a certificate of deposit; or

(E) Such other document acceptable to the bank which indicates the intent of the depositor.

(3) The designation of ownership interest contained in account documents shall be conclusive evidence in any action or proceeding involving the deposit account of the intention of all depositors to vest title to the deposit account in the manner specified in the account documents.

(4) Nothing in this section shall be construed to require a bank to offer any particular type of multiple-party deposit account.

(c) Multiple-party deposit accounts which do not expressly designate ownership interest as tenants in common, payable on death, or "Totten" or tentative trust shall constitute:

(1) A joint tenant with right of survivorship deposit account, if the depositors have not indicated in the account documents that the depositors are married to each other; and

(2) A tenants by the entirety deposit account, if the depositors have indicated in the account documents that they are married to each other, whether or not they are at that time husband and wife.

(d) (1) A joint tenant with right of survivorship deposit account may be paid to or on the order of any one (1) of the depositors during his or her lifetime unless a contrary written designation, in a form acceptable to the bank, is given to the bank, or to or on the order of any one (1) of the survivors of them after the death of any one (1) or more of them.

(2) A tenancy by the entirety deposit account may be paid to or on the order of either depositor during his or her lifetime, or to or on the order of the survivor after the death of one (1) of them.

(3) (A) A tenants in common deposit account may be paid, prior to the receipt by the bank of a specific written notice of death of a depositor, to or on the order of any one (1) depositor unless a contrary written designation in a form acceptable to the bank is given to the bank.

(B) Upon receipt of a specific written notice of death of a depositor in a form acceptable to the bank, the respective pro rata parts of a tenants in common deposit account may be paid to or on the order of the surviving tenant in common, and to the estate of the deceased depositor.

(C) All tenants in common deposit accounts shall be deemed to be owned pro rata by the depositors unless a contrary written designation in a form acceptable to the bank is given to the bank.

(e) (1) A payable on death deposit account is created when the depositor indicates on the account documents that on the death of the person named as holder, the deposit account shall be paid to or held by another person.

(2) Upon the death of the person named as holder, the person designated by him and who has survived him shall be the owner of the deposit account and, if more than one (1) person shall be the owners of the deposit account, ownership shall be as joint tenants with right of survivorship.

(3) During the lifetime of the depositor, he may change the designation of the person who is to be the owner at his death by written direction in a form acceptable to the bank.

(f) (1) A "Totten" or tentative trust deposit account is created when the depositor indicates on the account document that he is the trustee for another person and there is no written trust agreement which affects the deposit account.

(2) Upon the death of the person named as trustee, the other person shall be the owner of the deposit account and, if more than one (1) person shall be the owners of the deposit account, ownership shall be as joint tenants with right of survivorship.

(3) During the lifetime of the person named as trustee, he may change the classification of the person he is trustee for by written direction in a form acceptable to the bank.

(g) A bank shall also pay partial withdrawal requests, accept pledges of a deposit account, and otherwise deal with the deposit account in the same manner it pays the deposit account pursuant to the provisions of this section.

(h) (1) Any payment of a deposit account, acceptance of pledge of a deposit account, change in the form of a deposit account, or otherwise dealing with a deposit account by a bank in the manner provided by this section shall be a complete and valid release and discharge of the bank as to the amount paid or action taken.

(2) No bank shall have any liability whatsoever for the way in which the ownership interest of a deposit account is designated when it is opened or in which a deposit account is amended if the deposit account is opened or amended as the depositor specified in the account document.

(i) No bank making any payment in accordance with the provisions of this section shall thereby be liable for any estate, inheritance, or succession taxes which may be due.

(j) The terms "written direction" and "written designation" shall not be construed to require that the depositor affix his signature to an instrument unless the bank requires the signature of the depositor to the instrument.