Sec. 438A. CONVENIENCE ACCOUNT

(a) If an account is established at a financial institution by one or more parties in the names of the parties and one or more convenience signers and the terms of the account provide that the sums on deposit are paid or delivered to the parties or to the convenience signers "for the convenience" of the parties, the account is a convenience account.

(b) The making of a deposit in a convenience account does not affect the title to the deposit.

(c) A party to a convenience account is not considered to have made a gift of the deposit or of any additions or accruals to the deposit to a convenience signer.

(d) On the death of the last surviving party, a convenience signer shall have no right of survivorship in the account and ownership of the account remains in the estate of the last surviving party.

(e) If an addition is made to the account by anyone other than a party, the addition and accruals to the addition are considered to have been made by a party.

(f) All deposits to a convenience account and additions and accruals to the deposits may be paid to a party or to a convenience signer. The financial institution is completely released from liability for a payment made from the account before the financial institution receives notice in writing signed by a party not to make the payment in accordance with the terms of the account. After receipt of the notice from a party, the financial institution may require a party to approve any further payments from the account.

(g) If the financial institution makes a payment of the sums on deposit in a convenience account to a convenience signer after the death of the last surviving party and before the financial institution has received written notice of the last surviving party's death, the financial institution is completely released from liability for the payment. If a financial institution makes payment to the personal representative of the deceased last surviving party's estate after the death of the last surviving party and before service on the financial institution of a court order prohibiting payment, the financial institution is released to the extent of the payment from liability to any person claiming a right to the funds. The receipt by the representative to whom payment is made is a complete release and discharge of the financial institution.

Added by Acts 1993, 73rd Leg., ch. 795, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 846, Sec. 27, eff. Sept. 1, 1993. Subsecs. (a) and (c) to (g) amended by Acts 2003, 78th Leg., ch. 658, Sec. 1, eff. Sept. 1, 2003.