391.300 Definitions.
903 words·~4 min read·
/ky/chapter-391/391-300A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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
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 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;
(11)"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;
(12)"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;
(13)"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;
(14)"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;
(15)"Withdrawal" includes payment to a third person pursuant to check or other
directive of a party;
(16)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.