§ 28A-24-8. Protection of payors, bona fide purchasers, and other third parties; personal liability of recipient.
§ 28A‑24‑8. Protection of payors, bona fide purchasers, and other third parties; personalliability of recipient.
(a) A payor or otherthird party is not liable for having made a payment or transferred an item ofproperty or any other benefit to a person designated in a governing instrumentwho, under this Article, is not entitled to the payment or item of property, orfor having taken any other action in good faith reliance on the person'sapparent entitlement under the terms of the governing instrument, before thepayor or other third party received written notice of a claimed lack ofentitlement under this Article. A payor or other third party is liable for apayment made or other action taken after the payor or other third partyreceived written notice of a claimed lack of entitlement under this Article.
Written notice of a claimedlack of entitlement under this Article must be mailed to the payor's or otherthird party's main office or home by registered or certified mail, returnreceipt requested, or served upon the payor or other third party in the samemanner as a summons in a civil action. Upon receipt of written notice of aclaimed lack of entitlement under this Article, a payor or other third partymay pay any amount owed or transfer or deposit any item of property other thantangible personal property held by it to or with the clerk of the superiorcourt having jurisdiction of the probate proceedings relating to the decedent'sestate, or if no proceedings have been commenced, to or with the clerk of thesuperior court having jurisdiction of probate proceedings relating todecedents' estates located in the county of the decedent's residence. The clerkshall hold the funds or item of property and, upon the clerk's determinationunder this Article, shall order disbursement in accordance with thedetermination. Payments, transfers, or deposits made to or with the clerkdischarge the payor or other third party from all claims for the value ofamounts paid to or items of property transferred to or deposited with theclerk.
(b) A person whopurchases property for value and without notice, or who received a payment orother item of property in partial or full satisfaction of a legally enforceableobligation, is neither obligated under this Article to return the payment, itemof property, or benefit, nor liable under this Article for the amount of thepayment or the value of the item of property or benefit. But a person who, notfor value, receives a payment, item of property, or any other benefit to whichthe person is not entitled under this Article is obligated to return thepayment, item of property, or benefit, or is personally liable for the amountof the payment or the value of the item of property or benefit, to the personwho is entitled to it under this Article. (2007‑132, s. 1.)