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A BILL TO BE ENTITLED
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AN ACT
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relating to certain account disclosures provided by a financial |
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institution to a customer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 113.052, Estates Code, is amended to |
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read as follows: |
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Sec. 113.052. FORM. A financial institution may use the |
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following form to establish the type of account selected by a party: |
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UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION |
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FORM NOTICE: The type of account you select may determine how |
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property passes on your death. Your will may not control the |
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disposition of funds held in some of the following accounts. You |
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may choose to designate one or more convenience signers on an |
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account, even if the account is not a convenience account. A |
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designated convenience signer may make transactions on your behalf |
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during your lifetime, but does not own the account during your |
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lifetime. The designated convenience signer owns the account on |
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your death only if the convenience signer is also designated as a |
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P.O.D. payee or trust account beneficiary. |
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Select one of the following accounts by placing your initials |
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next to the account selected: |
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___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON |
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DEATH) DESIGNATION. The party to the account owns the account. On |
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the death of the party, ownership of the account passes as a part of |
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the party's estate under the party's will or by intestacy. |
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Enter the name of the party: |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON |
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DEATH) DESIGNATION. The party to the account owns the account. On |
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the death of the party, ownership of the account passes to the |
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P.O.D. beneficiaries of the account. The account is not a part of |
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the party's estate. |
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Enter the name of the party: |
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________________________________________________________________ |
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Enter the name or names of the P.O.D. beneficiaries: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF |
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SURVIVORSHIP. The parties to the account own the account in |
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proportion to the parties' net contributions to the account. The |
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financial institution may pay any sum in the account to a party at |
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any time. On the death of a party, the party's ownership of the |
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account passes as a part of the party's estate under the party's |
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will or by intestacy. |
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Enter the names of the parties: |
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________________________________________________________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF |
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SURVIVORSHIP. The parties to the account own the account in |
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proportion to the parties' net contributions to the account. The |
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financial institution may pay any sum in the account to a party at |
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any time. On the death of a party, the party's ownership of the |
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account passes to the surviving parties. |
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Enter the names of the parties: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP |
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AND P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the |
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account own the account in proportion to the parties' net |
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contributions to the account. The financial institution may pay |
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any sum in the account to a party at any time. On the death of the |
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last surviving party, the ownership of the account passes to the |
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P.O.D. beneficiaries. |
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Enter the names of the parties: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name or names of the P.O.D. beneficiaries: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (6) CONVENIENCE ACCOUNT. The parties to the account |
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own the account. One or more convenience signers to the account |
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may make account transactions for a party. A convenience signer |
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does not own the account. On the death of the last surviving party, |
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ownership of the account passes as a part of the last surviving |
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party's estate under the last surviving party's will or by |
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intestacy. The financial institution may pay funds in the account |
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to a convenience signer before the financial institution receives |
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notice of the death of the last surviving party. The payment to a |
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convenience signer does not affect the parties' ownership of the |
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account. |
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Enter the names of the parties: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s): |
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________________________________________________________________ |
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________________________________________________________________ |
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___ (7) TRUST ACCOUNT. The parties named as trustees to the |
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account own the account in proportion to the parties' net |
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contributions to the account. A trustee may withdraw funds from |
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the account. A beneficiary may not withdraw funds from the account |
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before all trustees are deceased. On the death of the last |
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surviving trustee, the ownership of the account passes to the |
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beneficiary. The trust account is not a part of a trustee's estate |
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and does not pass under the trustee's will or by intestacy, unless |
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the trustee survives all of the beneficiaries and all other |
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trustees. |
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Enter the name or names of the trustees: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name or names of the beneficiaries: |
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________________________________________________________________ |
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________________________________________________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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________________________________________________________________ |
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________________________________________________________________ |
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ACKNOWLEDGMENT: I acknowledge that I have read each paragraph |
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of this form and have received disclosure of the ownership rights to |
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the accounts listed above. I have placed my initials next to the |
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type of account I want. |
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_______________________ |
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Signature |
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SECTION 2. Section 113.053, Estates Code, is amended to |
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read as follows: |
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Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM. (a) Except |
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as provided by Subsection (d), a [A] financial institution shall |
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disclose the information provided in this subchapter to a customer |
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before [at the time] the customer selects or modifies an account. |
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(a-1) A financial institution is considered to have |
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disclosed the information provided in this subchapter if: |
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(1) the financial institution uses the form provided |
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by Section 113.052; and |
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(2) the customer signs the acknowledgment provided at |
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the end [places the customer's initials to the right of each
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paragraph] of the form. |
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(b) If a financial institution varies the format of the form |
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provided by Section 113.052, the financial institution shall |
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disclose [may make disclosures in the account agreement or in any
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other form that discloses] the information provided by this |
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subchapter[. Disclosures under this subsection must:
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[(1) be given] separately from other account |
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information except that the financial institution may disclose that |
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information as part of other account documentation if the |
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disclosures are the first items of the documentation[;
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[(2)
be provided before account selection or
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modification;
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[(3) be printed in 14-point boldfaced type; and
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[(4)
if the discussions that precede the account
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opening or modification are conducted primarily in a language other
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than English, be in that language]. |
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(c) The financial institution shall notify the customer of |
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the type of account the customer selected. This requirement is |
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satisfied by providing the customer with a copy of the account |
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opening or modification documentation, as appropriate, in paper or |
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electronic format. |
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(d) If a type of multiple-party account is not available |
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from a financial institution, the financial institution is not |
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required to make a disclosure about that type of account [This
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section does not apply to a credit union]. |
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(e) This section does not apply to an account that is opened |
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or modified by a customer who: |
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(1) is a legal entity, including a governmental |
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entity; or |
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(2) is acting as a legal representative for another |
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person. |
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SECTION 3. Section 113.0531, Estates Code, is repealed. |
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SECTION 4. This Act applies only to a financial institution |
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account opened or modified on or after the effective date of this |
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Act. A financial institution account opened or modified before the |
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effective date of this Act is governed by the law in effect on the |
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date the account was opened or modified, and the former law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |