Section 32A: Limited access deposit accounts
Section 32A. (a) A credit union may receive deposits into a deposit account held in the name of a natural person and established for personal, family or household purposes. The deposits, interest and other credits represented by the account may be withdrawn, assigned or transferred in whole or in part by the account holder only, except as otherwise provided in this section.
(b) Notwithstanding subsection (a), a holder of the account may provide for limited access to the account by another person to act as a signatory thereto pursuant to a declaration of intent in the form of a written statement, signed and sworn to by the account holder, evidencing his intent to designate another person as signatory to the account for the purpose of exercising, on behalf of the account holder, such powers with respect to the account as shall be expressed in the declaration.
The declaration of intent shall include the following:?
(1) the name of the financial institution holding said account;
(2) the account number;
(3) the date of execution;
(4) the name and signature of the account holder; and
(5) the powers granted relative to the use of and withdrawals from the account by the signatory.
(c) The provisions of the declaration relative to the account shall become effective upon the filing of the declaration with the financial institution involved, if the following documents are executed contemporaneously with, or on the same document as the declaration:
(1) a statement, signed by the signatory, accepting the appointment;
(2) a statement disclosing that any acts by a signatory relative to the account not specifically authorized in the declaration of intent may subject the signatory to civil or criminal liability;
(3) a statement, signed and sworn to by the signatory, acknowledging receipt of an attested copy of the declaration of intent and the statement required by clause (2).
The declaration submitted to effect the establishment of the account, and any documents related thereto, shall be maintained by the financial institution with the records of the account.
(d) Unless otherwise provided in the declaration of intent, all assets of the account shall be the property solely of the principal, and nothing in this section shall be construed to vest any rights relative to the account in the signatory; and in the event of the death of the principal while the declaration of intent is in effect, no right of survivorship shall accrue to a signatory.
(e) An amendment to or revocation of a declaration of intent, unless otherwise provided in the declaration, may be effected only by the principal or by a court appointed fiduciary in accordance with the intent of this section, and shall be filed forthwith with the financial institution holding the account.
(f)(1) In the event of the incapacity or death of the principal, and receipt of written notice by the financial institution holding the account, no withdrawals shall be permitted except by a court appointed fiduciary, unless otherwise provided for in the declaration of intent. Notice of the death or incapacity of the principal of a limited access deposit account shall be given to the main office of the credit union holding the account.
(2) A credit union shall not be required to monitor the limited access deposit account in a manner different from its other checking or savings accounts. A bank shall not be liable for withdrawals and payments made by the signatory before it receives notice of amendments or revocation of the declaration of intent, or before it receives notice of the death or incapacity of the principal.
(g) A signatory to the account shall maintain accurate records of his activity as a signatory and shall make the same available whenever requested to do so by the holder, his legal representative, or by a court appointed fiduciary.
(h) A signatory to the account who violates the terms of a declaration of intent, with intent to defraud, and converts or secretes, with intent to convert, the assets of such account, shall be guilty of larceny and subject to penalties contained in section 30 of chapter 266.