§ 54-109.58. Joint accounts.
§54‑109.58. Joint accounts.
(a) Shares may beissued to and deposits received from any two or more persons opening or holdingan account or accounts, but no joint tenant, unless a member in his own right,shall be permitted to vote, obtain loans, or hold office or be required to payan entrance or membership fee. The account and any balance thereof shall beheld by them as joint tenants, with or without right of survivorship, as thecontract shall provide; the account may also be held pursuant to G.S. 41‑2.1and have the incidents set forth in that section, provided, however, if theaccount is held pursuant to G.S. 41‑2.1 the contract shall set forth thatfact as well. Unless the persons establishing the account have agreed with thecredit union that withdrawals require more than one signature, payment by thecredit union to, or on the order of, any persons holding an account authorizedby this section shall be a total discharge of the credit union's obligations asto the amount so paid. Funds in a joint account established with right ofsurvivorship shall belong to the surviving joint tenant or tenants upon thedeath of a joint tenant, and the funds shall be subject only to the personalrepresentative's right of collection as set forth in G.S. 28A‑15‑10(a)(3),or as provided in G.S. 41‑2.1 if the account is established pursuant tothe provisions of that section. Payment by the credit union of funds in thejoint account to a surviving joint tenant or tenants shall terminate thepersonal representative's authority under G.S. 28A‑15‑10(a)(3) tocollect against the credit union for the funds so paid, but the personalrepresentative's authority to collect such funds from the surviving jointtenant or tenants is not terminated. A pledge of such account by any holder orholders shall, unless otherwise specifically agreed upon, be a valid pledge andtransfer of such account, or of the amount so pledged, and shall not operate tosever or terminate the joint ownership of all or any part of the account. Persons establishing an account under this section shall sign a statementshowing their election of the right of survivorship in the account, andcontaining language set forth in a conspicuous manner and substantially similarto the following:
"CREDIT UNION (or name of institution)
JOINT ACCOUNT WITH RIGHT OF SURVIVORSHIP
G.S. 54‑109.58
We understand that byestablishing a joint account under the provisions of North Carolina GeneralStatute 54‑109.58 that:
1. The credit union (orname of institution) may pay the money in the account to, or on the order of,any person named in the account unless we have agreed with the credit unionthat withdrawals require more than one signature; and
2. Upon the death ofone joint owner the money remaining in the account will belong to the survivingjoint owners and will not pass by inheritance to the heirs of the deceasedjoint owner or be controlled by the deceased joint owner's will.
We DO elect to create theright of survivorship in this account.
______________________________
______________________________ "
(a1) This section shallnot be deemed exclusive. Deposit accounts, not conforming to this sectionshall be governed by other applicable provisions of the General Statutes or thecommon law as appropriate.
(b) This section doesnot repeal or modify any provisions of laws relating to estate taxes. Thissection regulates and protects the credit union in its relationship with jointowners of accounts.
(c) No addition to suchaccount, nor any withdrawal or payment shall affect the nature of the accountas a joint account, or affect the right of any tenant to terminate theaccount. (1975, c. 538, s. 1; 1987 (Reg. Sess., 1988), c. 1078,s. 3; 1989, c. 164, s. 3; 1989 (Reg. Sess., 1990), c. 866, s. 7; 1998‑69,s. 15.)