§ 54C-165. Joint accounts.
§54C‑165. Joint accounts.
(a) Any two or morepersons may open or hold a withdrawable account or accounts. The withdrawableaccount and any balance of the account is held by them as joint tenants, withor without right of survivorship, as the contract shall provide. The accountmay also be held under G.S. 41‑2.1 and have incidents set forth in thatsection, but if the account is held under G.S. 41‑2.1, the contract shallset forth that fact as well. Unless the persons establishing the account haveagreed with the savings bank that withdrawals require more than one signature,payment by the savings bank to, or on the order of, any persons holding anaccount authorized by this section is a total discharge of the savings bank'sobligation as to the amount so paid. Funds in a joint account established withthe right of survivorship shall belong to the surviving joint tenant or tenantsupon the death of a joint tenant, and the funds are subject only to thepersonal representative'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 under thatsection. Payment by the savings bank of funds in the joint account to asurviving joint tenant or tenants shall terminate the personal representative'sauthority under G.S. 28A‑15‑10(a)(3) to collect against the savingsbank for the funds so paid, but the personal representative's authority tocollect the funds from the surviving joint tenant or tenants is notterminated. A pledge of the account by a holder shall, unless otherwisespecifically agreed upon, be a valid pledge and transfer of the account, or ofthe amount so pledged, and shall not operate to sever or terminate the jointownership of all or any part of the account. Persons establishing an accountunder this section shall sign a statement showing their election of the rightof survivorship in the account, and containing language set forth in aconspicuous manner and substantially similar to the following:
"SAVINGS BANK (or name of institution) JOINTACCOUNT
WITH RIGHT OF SURVIVORSHIP
G.S. 54C‑165
We understand that byestablishing a joint account under G.S. 54C‑165 that:
1. The savings bank (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 savings bankthat 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.
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(a1) This section is notdeemed exclusive. Deposit accounts not conforming to this section are governedby other applicable law as appropriate.
(b) This section doesnot repeal or modify any law relating to estate taxes. This section regulatesand protects the savings bank in its relationships with the joint owners ofdeposit accounts.
(c) No addition to theaccount nor any withdrawal or payment shall affect the nature of the account asa joint account or affect the right of any tenant to terminate the account. (1991,c. 680, s. 1; 1998‑69, s. 18.)