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391.300 Definitions.
As used in KRS 391.305 to 391.360, unless the context otherwise requires:
(1) "Account" means a contract of deposit of funds between a depositor and a
financial institution, and includes a checking account, savings account,
certificate of deposit, share account and other like arrangement;
(2) "Beneficiary" means a person named in a trust account as one for whom a
party to the account is named as trustee;
(3) "Financial institution" means any organization authorized to do business under
state or federal laws relating to financial institutions, including, without
limitation, banks and trust companies, savings banks, building and loan
associations, savings and loan companies or associations, and credit unions;
(4) "Joint account" means an account payable on request to one (1) or more of
two (2) or more parties whether or not mention is made of any right of
survivorship;
(5) A "multiple-party account" is any of the following types of account: (i) a joint
account, (ii) a P.O.D. account, or (iii) a trust account. It does not include
accounts established for deposit of funds of a partnership, joint venture, or
other association for business purposes, or accounts controlled by one (1) or
more persons as the duly authorized agent or trustee for a corporation,
unincorporated association, charitable or civic organization or a regular
fiduciary or trust account where the relationship is established other than by
deposit agreement;
(6) "Net contribution" of a party to a joint account as of any given time is the sum
of all deposits thereto made by or for him, less all withdrawals made by or for
him which have not been paid to or applied to the use of any other party, plus a
pro rata share of any interest or dividends included in the current balance. The
term includes, in addition, any proceeds of deposit life insurance added to the
account by reason of the death of the party whose net contribution is in
question;
(7) "Party" means a person who, by the terms of the account, has subject to
request, a present right, exercisable alone or jointly with one (1) or more other
parties, to payment from a multiple-party account. A P.O.D. payee or
beneficiary of a trust account is a party only after the account becomes payable
to him by reason of his surviving the original payee or trustee. Unless the
context otherwise requires, it includes a guardian, conservator, personal
representative, or assignee, including an attaching creditor, of a party. It also
includes a person identified as a trustee of an account for another whether or
not a beneficiary is named, but it does not include any named beneficiary
unless he has a present right of withdrawal;
(8) "Payment" of sums on deposit includes withdrawal, payment on check or other
directive of a party, and any pledge of sums on deposit by a party and any
set-off, or reduction or other 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
facie proof of death;
(10) "P.O.D. account" means an account payable on request to one (1) person
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during lifetime and on his death to one (1) or more P.O.D. payees, or to one (1)
or more persons during their lifetimes and on the death of all of them to one (1)
or more P.O.D. payees;
"P.O.D. payee" means a person designated on a P.O.D. account as one to
whom the account is payable on request after the death of one (1) or more
persons;
"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 concerning the necessary signature or number of signatures of
the parties to the account which may be required for a proper request and
regulations of the financial institution; but if the financial institution conditions
withdrawal or payment on advance notice, for purposes of KRS 391.305 to
391.360, the request for withdrawal or payment is treated as immediately
effective and a notice of intent to withdraw is treated as a request for
withdrawal;
"Sums on deposit" means the balance payable on a multiple-party account
including interest, dividends, and in addition any deposit life insurance
proceeds added to the account by reason of the death of a party;
"Trust account" means an account in the name of one (1) or more parties as
trustee for one (1) or more beneficiaries where the relationship is established
by the form of the account and the deposit agreement with the financial
institution and there is no subject of the trust other than the sums on deposit in
the account; it is not essential that payment to the beneficiary be mentioned in
the deposit agreement. A trust account does not include a regular trust account
under a testamentary trust or a trust agreement which has significance apart
from the account, or a fiduciary account arising from a fiduciary relation such as
attorney-client;
"Withdrawal" includes payment to a third person pursuant to check or other
directive of a party;
A financial institution "receives" an order or notice under KRS 391.305 to
391.360 when it is duly delivered at the place of business at which the
multiple-party account was originally established or at any other place held out
by the financial institution as the place for receipt of such communication.
History: Created 1976 Ky. Acts ch. 218, sec. 26.
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