General Laws

Section 3. A bank may receive demand, time and other types of deposits without limitation and upon such terms and conditions as may be agreed upon between the depositor and the bank. Such deposits may include, but shall not be limited to, the types of deposits described in subsections (a) to (c), inclusive.

(a) Any bank or federally-chartered bank may receive deposits in the name of 2 or more persons as joint tenants, payable to 2 or more persons or the survivor or survivors of them, and any part or all of the deposits and interest represented by joint accounts may be withdrawn, assigned or transferred in whole or in part by any of the individual parties. Payments to any of the parties to a joint account while all of them are living shall discharge the liability of the bank or federally chartered bank to all persons and, in the event of the death of any of them, the bank or federally chartered bank shall be liable only to the survivor or survivors and the payment to any of the survivors shall discharge the liability of the bank or federally chartered bank to all persons.

The surviving owner or owners of a joint account may maintain the balance of the account in the amount appearing at the time of the decease of a joint owner and such bank or federally chartered bank may allow interest additions and accumulations thereon.

Such deposits or any part thereof, or any interest thereon, may be paid to any of such persons or to any assignee or pledgee of any of such persons, whether the other such persons be living or not; provided, however, that they are not then attached at law or in equity in a suit against any such person, and the bank or federally chartered bank then has no notice in writing of any assignment or pledge of the account by any of such persons to any person other than the person to whom payment is being made hereunder. All such payments shall be valid and discharge the liability of the bank to all persons.

(b) Any bank or federally-chartered bank may receive deposits made by 1 or 2 persons in trust for other natural persons, trusts or a charity or nonprofit organization recognized by the Internal Revenue Service. The name and address and other pertinent identifying information of the persons or entities for which such deposit is being made shall be disclosed and the deposit shall be credited to the depositors as trustees for such persons or entities. Payments may be made to the trustee, or if there are 2 trustees, to both or to either or the survivor. If no other notice of the existence and terms of a trust has been received in writing by the bank or federally-chartered bank upon the death of the trustee or, if there are 2 trustees, upon the death of both of them, the amount then on deposit together with the interest thereon shall be paid to the persons or entities that survive the death of the last surviving trustee in an equal portion of the funds for which such deposit was made or to their legal representatives. Each person or entity claiming to be a beneficiary under this subsection or their representative shall provide such identification and other information as requested by the bank or federally-chartered bank. Withdrawals and payments made in accordance with this subsection shall fully discharge the liability of the bank or federally-chartered bank as to all persons or entities.

(c) Any bank or federally-chartered bank having funds on deposit in the name of a minor may, unless in violation of a written agreement to which such bank or federally-chartered bank is a party, pay the same in whole or in part directly to such minor, to the minor's legal representative, to either parent of such minor or to others on the minor's written order; and any such payments shall discharge the liability of such bank or federally-chartered bank to all persons to the extent of such payment.