75-6-101 - Definitions.
75-6-101. Definitions.
As used in this part:
(1) "Account" means a contract of deposit of funds between a depositor and a financialinstitution and includes:
(a) a checking account;
(b) a savings account;
(c) a certificate of deposit;
(d) a share account; and
(e) other like arrangement.
(2) "Beneficiary" means a person named in a trust account as one for whom a party to theaccount is named as trustee.
(3) "Financial institution" means any organization authorized to do business under stateor federal laws relating to financial institutions, including, without limitation:
(a) banks;
(b) trust companies;
(c) industrial banks;
(d) savings banks;
(e) building and loan associations;
(f) savings and loan companies or associations; and
(g) credit unions.
(4) "Joint account" means an account payable on request to one or more of two or moreparties whether or not mention is made of any right of survivorship.
(5) (a) "Multiple-party account" means any of the following types of account:
(i) a joint account;
(ii) a P.O.D. account; or
(iii) a trust account.
(b) "Multiple-party account" does not include:
(i) accounts established for deposit of funds of a partnership, joint venture, or otherassociation for business purposes; or
(ii) accounts controlled by one or more persons as the duly authorized agent or trustee fora corporation, unincorporated association, charitable or civic organization, or a regular fiduciaryor trust account where the relationship is established other than by deposit agreement.
(6) (a) "Net contribution" of a party to a joint account as of any given time is the sum ofall deposits to it made by or for the party, less all withdrawals made by or for the party whichhave not been paid to or applied to the use of any other party, plus a pro rata share of any interestor dividends included in the current balance.
(b) "Net contribution" includes, in addition, any proceeds of deposit life insurance addedto the account by reason of the death of the party whose net contribution is in question.
(7) (a) "Party" means a person, including a minor, who, by the terms of the account, has apresent right, subject to request, to payment from a multiple-party account.
(b) A P.O.D. payee or beneficiary of a trust account is a party only after the accountbecomes payable to him by reason of his surviving the original payee or trustee and includes aguardian, conservator, personal representative, or assignee, including an attaching creditor, of aparty.
(c) "Party" includes a person identified as a trustee of an account for another whether or
not a beneficiary is named.
(d) "Party" does not include any named beneficiary unless the named beneficiary has apresent right of withdrawal.
(8) "Payment" of sums on deposit includes withdrawal, payment on check or otherdirective of a party, and any pledge of sums on deposit by a party and any setoff, reduction, orother disposition of all or part of an account pursuant to a pledge.
(9) "Proof of death" includes a death certificate or record or report which is prima facieproof of death under Section 75-1-107.
(10) "P.O.D. account" means an account payable on request to one person during lifetimeand on that person's death to:
(a) one or more P.O.D. payees; or
(b) one or more persons during their lifetimes and on the death of all of them to one ormore P.O.D. payees.
(11) "P.O.D. payee" means a person designated on a P.O.D. account as one to whom theaccount is payable on request after the death of one or more persons.
(12) "Request" means a proper request for withdrawal, or a check or order for payment,which complies with all conditions of the account, including special requirements concerningnecessary signatures and regulations of the financial institution; but if the financial institutionconditions withdrawal or payment on advance notice, for purposes of this part the request forwithdrawal or payment is treated as immediately effective and a notice of intent to withdraw istreated as a request for withdrawal.
(13) "Sums on deposit" means the balance payable on a multiple-party account, includinginterest, dividends, and in addition any deposit life insurance proceeds added to the account byreason of the death of a party.
(14) (a) "Trust account" means an account in the name of one or more parties as trusteefor one or more beneficiaries where the relationship is established by the form of the account andthe deposit agreement with the financial institution and there is no subject of the trust other thanthe sums on deposit in the account; and it is not essential that payment to the beneficiary bementioned in the deposit agreement.
(b) A trust account does not include a regular trust account under a testamentary trust ora trust agreement which has significance apart from the account, or a fiduciary account arisingfrom a fiduciary relation such as attorney-client.
(15) "Withdrawal" includes payment to a third person pursuant to check or otherdirective of a party.
Amended by Chapter 92, 2004 General Session