New Jersey Administrative Code
Title 3 - BANKING
Chapter 1 - GENERAL PROVISIONS
Subchapter 12 - MULTIPLE PARTY DEPOSIT ACCOUNTS
Section 3:1-12.4 - Specific content of deposit contract
Universal Citation: NJ Admin Code 3:1-12.4
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The following information must be included in all multiple party account contracts:
1. A statement that the account is subject to
the provisions of the Multiple Party Deposit Account Act,
17:16I-1 et seq.
2. Express provisions that:
i. Identify the type of account; that is,
whether it is a joint account, a P.O.D. account, or a trust account;
and
ii. Specify the present
interests of all parties with an explanation that parties will share equally in
the absence of proof of net contribution unless the parties expressly agree
otherwise; and
iii. Specify that
unless otherwise provided there is a right of survivorship among parties, but
the account must expressly provide for a right of survivorship between or among
two or more P.O.D. payees or trust beneficiaries.
3. A statement of no liability to the
financial institutions for payments made pursuant to the Act. Any multiple
party account may be paid, on request, to any one or more of the parties. The
financial institution may also make payment from a multiple-party account,
including payment of the entire account balance: pursuant to any statutory or
common law right of set off, levy, attachment or other valid legal process or
court order, relating to the interest of any one or more of the parties; and on
request to a trustee in bankruptcy, receiver in any state or Federal insolvency
proceeding, or other duly authorized insolvency representative of any one or
more of the parties. The financial institutions shall not be required to
determine net contributions. If the information in this subsection was not
provided in the account contract, it may be provided to the parties by
subsequent notice.
4. The necessary
form of notice required to effectively change the terms of the deposit
contract. Where there is more than one party, that is, joint accounts or two or
more original payees in P.O.D. accounts or two or more trustees in trust
accounts, the financial institution may require that the party giving the
notice pursuant to
17:16I-6 or
17:16I-12 provide the current
address of every other party affected by the notice if such address is
known.
5. An acknowledgement of
having read the contract which must be signed by all parties.
(b) Model forms may be found in Appendix A to this chapter, incorporated herein by reference.
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