Bill Text: TX SB714 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to certain account disclosures provided by a financial institution to a customer.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-05-29 - Effective on 9/1/17 [SB714 Detail]

Download: Texas-2017-SB714-Introduced.html
  85R7797 MTB-D
 
  By: Seliger S.B. No. 714
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain account disclosures provided by a financial
  institution to a customer.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 113.052, Estates Code, is amended to
  read as follows:
         Sec. 113.052.  FORM.  A financial institution may use the
  following form to establish the type of account selected by a party:
         UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION
  FORM NOTICE:  The type of account you select may determine how
  property passes on your death.  Your will may not control the
  disposition of funds held in some of the following accounts.  You
  may choose to designate one or more convenience signers on an
  account, even if the account is not a convenience account.  A
  designated convenience signer may make transactions on your behalf
  during your lifetime, but does not own the account during your
  lifetime.  The designated convenience signer owns the account on
  your death only if the convenience signer is also designated as a
  P.O.D. payee or trust account beneficiary.
         Select one of the following accounts by placing your initials
  next to the account selected:
         ___ (1)  SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON
  DEATH) DESIGNATION.  The party to the account owns the account.  On
  the death of the party, ownership of the account passes as a part of
  the party's estate under the party's will or by intestacy.
         Enter the name of the party:
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ___ (2)  SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON
  DEATH) DESIGNATION.  The party to the account owns the account.  On
  the death of the party, ownership of the account passes to the
  P.O.D. beneficiaries of the account.  The account is not a part of
  the party's estate.
         Enter the name of the party:
  ________________________________________________________________
         Enter the name or names of the P.O.D. beneficiaries:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ___ (3)  MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF
  SURVIVORSHIP.  The parties to the account own the account in
  proportion to the parties' net contributions to the account.  The
  financial institution may pay any sum in the account to a party at
  any time.  On the death of a party, the party's ownership of the
  account passes as a part of the party's estate under the party's
  will or by intestacy.
         Enter the names of the parties:
  ________________________________________________________________
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ___ (4)  MULTIPLE-PARTY ACCOUNT WITH RIGHT OF
  SURVIVORSHIP.  The parties to the account own the account in
  proportion to the parties' net contributions to the account.  The
  financial institution may pay any sum in the account to a party at
  any time.  On the death of a party, the party's ownership of the
  account passes to the surviving parties.
         Enter the names of the parties:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ___ (5)  MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP
  AND P.O.D. (PAYABLE ON DEATH) DESIGNATION.  The parties to the
  account own the account in proportion to the parties' net
  contributions to the account.  The financial institution may pay
  any sum in the account to a party at any time.  On the death of the
  last surviving party, the ownership of the account passes to the
  P.O.D. beneficiaries.
         Enter the names of the parties:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name or names of the P.O.D. beneficiaries:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ___ (6)  CONVENIENCE ACCOUNT.  The parties to the account
  own the account.  One or more convenience signers to the account
  may make account transactions for a party.  A convenience signer
  does not own the account.  On the death of the last surviving party,
  ownership of the account passes as a part of the last surviving
  party's estate under the last surviving party's will or by
  intestacy.  The financial institution may pay funds in the account
  to a convenience signer before the financial institution receives
  notice of the death of the last surviving party.  The payment to a
  convenience signer does not affect the parties' ownership of the
  account.
         Enter the names of the parties:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s):
  ________________________________________________________________
  ________________________________________________________________
         ___ (7)  TRUST ACCOUNT.  The parties named as trustees to the
  account own the account in proportion to the parties' net
  contributions to the account.  A trustee may withdraw funds from
  the account.  A beneficiary may not withdraw funds from the account
  before all trustees are deceased.  On the death of the last
  surviving trustee, the ownership of the account passes to the
  beneficiary.  The trust account is not a part of a trustee's estate
  and does not pass under the trustee's will or by intestacy, unless
  the trustee survives all of the beneficiaries and all other
  trustees.
         Enter the name or names of the trustees:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name or names of the beneficiaries:
  ________________________________________________________________
  ________________________________________________________________
         Enter the name(s) of the convenience signer(s), if you want
  one or more convenience signers on this account:
  ________________________________________________________________
  ________________________________________________________________
         ACKNOWLEDGMENT: I acknowledge that I have read each paragraph
  of this form and have received disclosure of the ownership rights to
  the accounts listed above. I have placed my initials next to the
  type of account I want.
         _______________________
         Signature
         SECTION 2.  Section 113.053, Estates Code, is amended to
  read as follows:
         Sec. 113.053.  REQUIRED DISCLOSURE; USE OF FORM. (a) Except
  as provided by Subsection (d), a [A] financial institution shall
  disclose the information provided in this subchapter to a customer
  before [at the time] the customer selects or modifies an account.
         (a-1)  A financial institution is considered to have
  disclosed the information provided in this subchapter if:
               (1)  the financial institution uses the form provided
  by Section 113.052; and
               (2)  the customer signs the acknowledgment provided at
  the end [places the customer's initials to the right of each
  paragraph] of the form.
         (b)  If a financial institution varies the format of the form
  provided by Section 113.052, the financial institution shall
  disclose [may make disclosures in the account agreement or in any
  other form that discloses] the information provided by this
  subchapter[.  Disclosures under this subsection must:
               [(1)  be given] separately from other account
  information except that the financial institution may disclose that
  information as part of other account documentation if the
  disclosures are the first items of the documentation[;
               [(2)     be provided before account selection or
  modification;
               [(3)  be printed in 14-point boldfaced type; and
               [(4)     if the discussions that precede the account
  opening or modification are conducted primarily in a language other
  than English, be in that language].
         (c)  The financial institution shall notify the customer of
  the type of account the customer selected. This requirement is
  satisfied by providing the customer with a copy of the account
  opening or modification documentation, as appropriate, in paper or
  electronic format.
         (d)  If a type of multiple-party account is not available
  from a financial institution, the financial institution is not
  required to make a disclosure about that type of account [This
  section does not apply to a credit union].
         (e)  This section does not apply to an account that is opened
  or modified by a customer who:
               (1)  is a legal entity, including a governmental
  entity; or
               (2)  is acting as a legal representative for another
  person.
         SECTION 3.  Section 113.0531, Estates Code, is repealed.
         SECTION 4.  This Act applies only to a financial institution
  account opened or modified on or after the effective date of this
  Act. A financial institution account opened or modified before the
  effective date of this Act is governed by the law in effect on the
  date the account was opened or modified, and the former law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2017.
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