(a)
(1) As used in this section:
(A) “Multiple-party deposit account” means a deposit account established in the names of two (2) or more persons and payable to or in a form subject to withdrawal by one (1) or more of the persons named on the deposit account; and
(B) “Single-party deposit account” means a deposit account established in the name of one (1) person and payable to or in a form subject to withdrawal by the person named on the deposit account.
(2) A deposit account may be established as a single-party deposit account or a multiple-party deposit account.
(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 tenants 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) A deposit account may have a payable on death designation.
(B) A payable on death deposit account is created if the depositor indicates on the account documents that:
(i) The deposit account is payable to one (1) or more living account holders during the life of the account holders; and
(ii) Upon the death of the person or persons to whom the deposit account is payable under subdivision (e)(1)(B)(i) of this section, the deposit account shall be paid to or held by another person or persons, as defined in § 23-45-102.
(2)
(A) Upon the death of the person or persons to whom the deposit account is payable under subdivision (e)(1)(B)(i) of this section, the owner of the deposit account shall be the person or persons designated by the depositor as a beneficiary on the account documents and that beneficiary is a person, as defined in § 23-45-102.
(B)
(i) If more than one (1) person becomes an owner of the deposit account under subdivision (e)(2)(A) of this section, ownership of the deposit account shall be as joint tenants with right of survivorship.
(ii) If a designated beneficiary does not survive or is not a person as defined in § 23-45-102, the proceeds remaining on deposit in the deposit account belong to the estate of the last surviving account holder.
(3) During the lifetime of the depositor, he or she may change the designation of the beneficiary who shall be the owner at his or her death by written direction in a form acceptable to the bank.
(4) The State Bank Department shall promulgate rules that set out procedures a bank may take before transferring ownership of a deposit account, closing a deposit account, and distributing the proceeds to a person designated by the account documents as a beneficiary.
(f)
(1) A “Totten” or tentative trust deposit account is created when the depositor indicates on the account document that he or she 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 or she may change the classification of the person he or she 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 or her signature to an instrument unless the bank requires the signature of the depositor to the instrument.
(k) This section applies to a deposit account established on or after June 1, 2015.