Adverse Claims to Deposits and Property Held in Safe Deposit

1. Law
2. Georgia Code
3. Banking and Finance
4. Financial Institutions
5. Banks and Trust Companies
6. Deposits, Safe-Deposit Agreements, and Money Received for Transmission
7. Adverse Claims to Deposits and Property Held in Safe Deposit

1. Except as provided in subsections (b) and (c) of this Code section, a bank or trust company shall not be required to deny control over or access to a deposit account or property held in safe deposit (whether by the bank or trust company or in a safe-deposit box or other receptacle leased to a customer) to:
   1. The customer in whose name the account or property is held by the bank or trust company (including one of two depositors or lessees entitled to such control or access by virtue of their contract with the bank or trust company); or
   2. A person or group of persons who is authorized to draw on or control the account or property pursuant to a certified corporate resolution or other written arrangement with the customer currently on file with the bank or trust company.
2. A bank shall be entitled to act and rely upon:
   1. A court order, distraint, levy, garnishment, or other effective legal process;
   2. An agreement of the parties concerning an adverse claim; or
   3. A claim of the type described in subsection (a) of this Code section accompanied by a bond or other indemnity adequate to protect the bank or trust company from loss as a consequence of recognizing an adverse claim.
3. Nothing in this Code section shall impair the effect of a discharge which a bank or trust company would be entitled to under Code Section 11-3-602.

(Code 1933, § 41A-1606, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1984, p. 22, § 7; Ga. L. 1997, p. 143, § 7; Ga. L. 2016, p. 390, § 7-8/HB 811.)

Cross references.

- Disposition of property held in safe deposit box or held for safekeeping by financial institution for which department acts as receiver, § 7-1-172.

JUDICIAL DECISIONS

IRS levy.

- Bank did not violate O.C.G.A. § 7-1-353 by denying a depositor control over the depositor's bank account when the bank surrendered money in the depositor's account pursuant to an IRS levy. Dean v. NationsBank, 226 Ga. App. 370, 486 S.E.2d 647 (1997).

Cited in Fedina v. Larichev, 322 Ga. App. 76, 744 S.E.2d 72 (2013).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 1005 et seq., 1012.

C.J.S.

- 93 C.J.S. (Rev), Warehousemen and Safe Depositaries, § 141.

ALR.

- Levy upon or garnishment of contents of safety deposit box, 11 A.L.R. 225; 19 A.L.R. 863; 39 A.L.R. 1215.

Crediting amount to depositor's account as precluding recovery back of money paid to bank by mistake, 25 A.L.R. 129.

Insurance of bank or trust company against loss by burglary or robbery as covering contents of safety deposit boxes rented to customers, 30 A.L.R. 623.

Liability for loss of contents of safe-deposit box, 42 A.L.R. 1304; 133 A.L.R. 279.

Duty of bank to sureties or endorsers as to application of general deposit by principal, 70 A.L.R. 339.

Right of bank to charge depositor's indebtedness against deposit account without first exhausting collateral, 96 A.L.R. 1240.

Presumption as to ownership of property in safe deposit box, 101 A.L.R. 832.

Garnishment of bank deposit as affected by bank's right, or waiver of right, to set off depositor's indebtedness to it against deposit or apply deposit to such indebtedness, 106 A.L.R. 62; 110 A.L.R. 1268.

Conflict of laws as to disposition of and relative rights to bank deposits in the names of more than one person, 25 A.L.R.2d 1240.

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