Sec. 26. (a) Payment made under section 22, 23, or 25 of this chapter discharges the financial institution from all claims for amounts paid whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors.

     (b) The protection provided under this section does not extend to payments made after a financial institution has received written notice from any party able to request present payment to the effect that withdrawals in accordance with the terms of the account should not be permitted.

Terms Used In Indiana Code 32-17-11-26

  • account: means a contract of deposit of funds between a depositor and a financial institution. See Indiana Code 32-17-11-1
  • financial institution: means any organization authorized to do business in Indiana under IC 28 or federal law relating to financial institutions. See Indiana Code 32-17-11-3
  • party: means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple party account. See Indiana Code 32-17-11-7
  • request: means :

    Indiana Code 32-17-11-12

  • withdrawal: includes payment to a third person pursuant to a check or other directive of a party. See Indiana Code 32-17-11-15
     (c) Unless a notice described in subsection (b) is withdrawn by the person giving it, the successor of any deceased party must concur in any demand for withdrawal if the financial institution is to be protected under this section.

     (d) No other notice or any other information shown to have been available to a financial institution affects the institution’s right to the protection provided under this section.

     (e) The protection provided under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in or withdrawn from multiple party accounts.

[Pre-2002 Recodification Citation: 32-4-1.5-12.]

As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.39.

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