§ 54C-167. Personal agency accounts. - North Carolina Statutes

§54C‑167.  Personal agency accounts.

(a)        A person may open apersonal agency account by written contract containing a statement that it isexecuted under this section.  A personal agency account may be a checkingaccount, savings account, time deposit, or any other type of withdrawableaccount or certificate.  The written contract shall name an agent who shallhave authority to act on behalf of the depositor in regard to the account asset 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 anaccount under this section shall sign a statement containing languagesubstantially similar to the following in a conspicuous manner:

"SAVINGS BANK (or name of institution)

PERSONAL AGENCY ACCOUNT

G.S. 54C‑167

I understand that, byestablishing a personal agency account under G.S. 54C‑167, the agentnamed 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 this section grants no ownership right or interest in the agent.  Uponthe death of the principal there is no right of survivorship to the account andthe authority set out in subsection (a) of this section terminates.

(c)        The writtencontract referred to in subsection (a) of this section shall provide that theprincipal may elect to extend the authority of the agent to act on behalf ofthe principal in regard to the account notwithstanding the subsequentincapacity or mental incompetence of the principal.  If the principal so electsto extend the authority of the agent, then upon the subsequent incapacity ormental incompetence of the principal, the agent may continue to exercise theauthority, without the requirement of bond or of accounting to any court, untilthe agent receives actual knowledge that the authority has been terminated by aduly qualified guardian of the estate of the incapacitated or incompetentprincipal, or by the duly appointed attorney‑in‑fact for theincapacitated or incompetent principal, acting under a durable power ofattorney, 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 under this section, at which time the agent shallaccount to the guardian or attorney‑in‑fact for all actions of theagent in regard to the account during the incapacity or incompetence of theprincipal.  If the principal does not so elect to extend the authority of theagent, then upon the subsequent incapacity or mental incompetence of theprincipal, the authority of the agent 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 savings bank 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, the payment is a valid and sufficient discharge to the savings bankfor payment so made. (1991, c. 680, s. 1.)