§ 54B-139. Personal agency accounts. - North Carolina Statutes

§54B‑139.  Personal agency accounts.

(a)        A person may open apersonal agency account by written contract containing a statement that it isexecuted pursuant to the provisions of this section.  A personal agency accountmay be a checking account, savings account, time deposit, or any other type ofwithdrawable account or certificate.  The written contract shall name an agentwho shall have authority to act on behalf of the depositor in regard to theaccount as set out in this subsection.  The agent shall have the authority to:

(1)        Make, sign orexecute checks drawn on the account or otherwise make withdrawals from theaccount;

(2)        Endorse checks madepayable to the principal for deposit only into the account; and

(3)        Deposit cash ornegotiable instruments, including instruments endorsed by the principal, intothe account.

A person establishing an accountunder this section shall sign a statement containing language substantiallysimilar to the following in a conspicuous manner:

"SAVINGS AND LOAN (or name of institution)

PERSONAL AGENCY ACCOUNT

G.S. 54B‑139

I understand that byestablishing a personal agent account under the provisions of North CarolinaGeneral Statute 54B‑139 that the agent named in the account may:

1.         Sign checks drawn onthe account; and

2.         Make deposits intothe account.

I also understand that upon mydeath the money remaining in the account will be controlled by my will orinherited by my heirs.

______________________________ "

(b)        An account createdunder the provisions of this section grants no ownership right or interest inthe agent.  Upon the death of the principal there is no right of survivorshipto the account and the authority set out in subsection (a) terminates.

(c)        The writtencontract referred to in subsection (a) shall provide that the principal mayelect to extend the authority of the agent set out in subsection (a) to act onbehalf of the principal in regard to the account notwithstanding the subsequentincapacity or mental incompetence of the principal.  If the principal so electsto extend such authority of the agent, then upon the subsequent incapacity ormental incompetence of the principal, the agent may continue to exercise suchauthority, without the requirement of bond or of accounting to any court, untilsuch time as the agent shall receive actual knowledge that such authority hasbeen terminated by a duly qualified guardian of the estate of the incapacitatedor incompetent principal or by the duly appointed attorney‑in‑factfor the incapacitated or incompetent principal, acting pursuant to a durablepower of attorney (as defined in G.S. 32A‑8) which grants to the attorney‑in‑factthat authority in regard to the account which is granted to the agent by thewritten contract executed pursuant to the provisions of this section, at whichtime the agent shall account to such guardian or attorney‑in‑factfor all actions of the agent in regard to the account during the incapacity orincompetence of the principal.  If the principal does not so elect to extendthe authority of the agent, then upon the subsequent incapacity or mentalincompetence of the principal, the authority of the agent set out in subsection(a) terminates.

(d)        When an accountunder this section has been established all or part of the account or anyinterest or dividend thereon may be paid by the association on a check made,signed or executed by the agent.  In the absence of actual knowledge that theprincipal has died or that the agency created by the account has beenterminated, such payment shall be a valid and sufficient discharge to theassociation for payment so made. (1987 (Reg. Sess., 1988), c.1078, s. 7; 1989, c. 164, s. 7; 1989 (Reg. Sess., 1990), c. 866, s. 3.)