Utah Code 75-6-113. Financial institution protection — Setoff — Attachment, garnishment, and other legal process

(1)

Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, if a party to a multiple-party account is indebted to a financial institution, the financial institution has a right to setoff against the balance in any account in which the party has or had immediately before his death a present right of withdrawal.

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Terms Used In Utah Code 75-6-113

Account: means a contract of deposit of funds between a depositor and a financial institution and includes:

(a)	a checking account;

(b)	a savings account;

(c)	a certificate of deposit;

(d)	a share account; and

(e)

other like arrangement. See Utah Code 75-6-101

Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.

Financial institution: means any organization authorized to do business under state or federal laws relating to financial institutions, including, without limitation:

(a)

banks;

(b)	trust companies;

(c)	industrial banks;

(d)	savings banks;

(e)	building and loan associations;

(f)	savings and loan companies or associations; and

(g)

credit unions. See Utah Code 75-6-101

Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor

Lien: A claim against real or personal property in satisfaction of a debt.

Multiple-party account: means any of the following types of account:

(i)	a joint account;

(ii)

a P. See Utah Code 75-6-101

Party: includes a person identified as a trustee of an account for another whether or not a beneficiary is named. See Utah Code 75-6-101

Person: means :Utah Code 68-3-12.5

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

Withdrawal: includes payment to a third person pursuant to check or other directive of a party. See Utah Code 75-6-101

(2)

Without regard to the ownership of funds in any multiple-party account and without incurring liability for wrongful dishonor, conversion, or other liability or damage to any person, a financial institution may refuse to permit any withdrawals from the account after service on the financial institution of an attachment, garnishment, execution, or other legal process against the account. The financial institution shall not be required to pay out any part of the credit balance in the account pursuant to an attachment, garnishment, judgment, or other legal process issued in any proceeding against any one or more but less than all of the persons to whom the account is payable until the institution has been furnished with a certified copy of an order of the court determining which of the persons owned the credit balance at the time the process was served on the institution. Payment pursuant to the process in the amount specified in the court order shall be valid and release the financial institution as to any persons claiming an interest in the account.

Enacted by Chapter 150, 1975 General Session

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