SLS 13RS-161 ENGROSSED Page 1 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2013 SENATE BILL NO. 190 BY SENATOR GALLOT Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. BANKS/BANKING. Provides relative to banks and mutual associations. (gov sig) AN ACT1 To amend and reenact R.S. 6:325, 767, and 768, relative to banks and mutual associations;2 to provide for the access and transfer of the contents of a safety deposit box by a3 bank or association to a succession representative, heir, or legatee; to provide for4 access and transfer of the contents of certain accounts of a bank or association to a5 succession representative, heir, or legatee; to provide for procedure, terms, and6 conditions; to provide for an effective date; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 6:325, 767, and 768 are hereby amended and reenacted to read as9 follows:10 §325. Death of a customer and access and transfer Transfer of contents of safety11 deposit boxes, money and other property by bank to succession12 representatives, legatees, or heirs or their representatives, executors,13 or administrators; authority14 A. For all purposes, a A bank may deal with a safety deposit boxes or box15 or money, on deposit or otherwise, and any other property in it's a bank's possession16 titled standing in the name of a deceased customer person or in which the latter had17 SB NO. 190 SLS 13RS-161 ENGROSSED Page 2 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. an interest in accordance with its contract with its deceased customer until the bank1 receives notice in writing specifically addressed to it of the death of the its customer.2 After receipt of such notice in writing and upon proper authority and upon obtaining3 a receipt therefor, any bank may transfer the contents of a safety deposit box or any4 money and other property in its possession standing in the name of a deceased person5 or in which the latter had an interest to the succession representative, the surviving6 spouse, heirs, or legatees of the deceased.7 B.(1) The letters of the succession representative or the judgment recognizing8 and putting the heirs in possession issued by a court of competent jurisdiction and9 accompanied by letters of tutorship or curatorship of the heirs who are not sui juris10 shall constitute proper authority for making the transfer which, when so made and11 receipted for, shall be full protection to the bank as to any heir, legatee, creditor, or12 other person having rights or claims to funds or property of the decedent.13 Regardless of whether a bank receives written notice of the death of its14 customer and regardless of any prior action by a bank to freeze or restrict15 access and transactions related to its deceased customer's accounts or safety16 deposit box, upon receipt of letters testamentary, letters of administration, or17 letters of independent administration establishing the appointment of an18 authorized succession representative, a bank may grant access to or allow the19 transfer of contents of a safety deposit box or money or other property titled in20 the name of the bank's deceased customer to the succession representative.21 (2) The letters of the succession representative shall constitute full and22 proper authority for allowing the succession representative to access, withdraw,23 or transfer money or property of the bank's deceased customer, and the bank24 shall have no liability related to such activity or transaction involving the25 deceased customer's safety deposit box or money or other property in the26 bank's possession.27 (3) The bank may continue to follow the direction of the authorized28 succession representative related to the safety deposit box or money or other29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 3 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. property of its deceased customer, unless and until the bank receives a1 subsequent order specifically naming and directing the bank to cease following2 the written direction of the succession representative, or the bank receives a3 subsequent order limiting or terminating the authority of or replacing the4 succession representative.5 C. The judgment of possession recognizing and putting the legatees or6 heirs in possession of the bank's deceased customer's estate shall constitute full7 and proper authority for the bank holding a safety deposit box or money or8 other property titled in the name of its deceased customer to transfer those9 assets to the legatees or heirs entitled to such property under the judgment of10 possession. When a bank makes such a transfer, the bank shall have full11 protection from any heir, legatee, creditor, or other person having any right or12 claim to money or other property of its deceased customer. The bank shall have13 no liability related to any such transfer or transaction involving its deceased14 customer's safety deposit box or money or other property in the bank's15 possession.16 C. D. Conclusive proof to the bank of the letters testamentary, letters of17 administration, letters of independent administration of the succession18 representative, or judgment of possession and of the jurisdiction of the court19 rendering them shall result from copies thereof, duly certified when rendered by a20 court of this state, or certified according to the Acts of Congress when rendered by21 a court of any other state, or certified according to the law of the place when22 rendered by a court of any possession or dependency of the United States, or23 certified according to the law of the place with the genuineness of the certification24 attested by a consular agent of the United States when rendered by a court of any25 foreign country.26 D. The receipt to be obtained by the bank may be in any form, but it shall be27 signed either by the succession representative accompanied by a certified copy of the28 letters or by the heirs or the legal representatives of the heirs who are not sui juris29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 4 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. accompanied by a certified copy of the judgment recognizing and putting the heirs1 in possession and by a certified copy of the letters of tutorship or curatorship of the2 legal representatives of the heirs who are not sui juris.3 * * *4 §767. Death of member or depositor and access and transfer of money and5 property by association to succession representatives, legatees, or6 heirs; authority7 A. Upon the death of a member or depositor, the rights of membership or of8 a depositor shall continue in the executor, administrator, succession representatives,9 legatees, or heirs, or surviving spouse of the deceased depositor, as the case may be.10 B. The association shall transfer these shares or savings accounts and all11 dividends or interest which have accrued on them as provided by law. For all12 purposes, an association may deal with money, on deposit or otherwise, held by13 an association in a savings account, demand account, deposit account, share14 account, and with any other property, titled in the name of its deceased member15 or depositor in accordance with its contract with its deceased member or16 depositor until the association receives notice in writing specifically addressed17 to it of the death of the member or depositor.18 C. Upon proper authority and surrender of any certificates and evidences of19 ownership of a decedent in shares or savings accounts of an association, by any duly20 qualified administrator or executor of the succession of such decedent, every21 association may pay the withdrawal value of shares, or savings accounts and any22 dividends or interest that may have accrued thereon in its possession belonging to a23 deceased person, to the administrator or executor of the deceased's succession. The24 letters of the succession representative issued by a court shall constitute a proper25 authority for making payment to such administrator or executor, shall constitute full26 protection to the association making any such payment, and the association shall27 have no liability for any inheritance tax due thereon. Regardless of whether the28 association has received written notice of the death of its member or depositor29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 5 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and regardless of any prior action by an association to freeze or restrict access1 and transactions related to its deceased member's or depositor's shares or2 accounts, upon receipt of the letters testamentary, letters of administration, or3 letters of independent administration establishing the appointment of an4 authorized succession representative, an association may grant access to or5 allow the transfer of money or other property titled in the name of its deceased6 member or depositor to the succession representative. The letters of the7 succession representative shall constitute full and proper authority for the8 association to grant access to or allow the transfer of the withdrawal value of9 share accounts, demand accounts, deposit accounts, or savings accounts and any10 dividends or interest that may have accrued thereon or any money or property11 held in the name of the deceased member or depositor to such succession12 representative, and the association shall have no liability related to such activity13 or transactions involving its deceased member's or depositor's money or14 property in its possession, and the association shall have no liability for any15 inheritance tax due thereon. The association may continue to follow the16 direction of the authorized succession representative related to the money or17 other property titled in its deceased member's or depositor's name, unless and18 until the association receives a subsequent order specifically naming the19 association and directing the association to cease following the written direction20 of the succession representative, or the association receives a subsequent order21 limiting or terminating the authority of or replacing the succession22 representative.23 D. The judgment of possession recognizing and putting the legatees or24 heirs in possession of the deceased customer's estate shall constitute full and25 proper authority for the association holding a safety deposit box or money or26 other property titled in the name of its deceased member or customer to27 transfer those assets to the legatees or heirs entitled to such property under the28 judgment of possession, and when an association makes such a transfer, there29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 6 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. shall be full protection to the association against any heir, legatee, creditor, or1 other person having any right or claim to money or property of its deceased2 customer. The association shall have no liability related to such transfers or3 transactions involving its deceased customer's money or other property in the4 association's possession.5 E. Conclusive proof to the association of the letters testamentary, letters6 of administration, or letters of independent administration of the succession7 representative, or of the judgment of possession, and of the jurisdiction of the8 court rendering them, shall be as provided in R.S. 6:325(D).9 D. F. Any association may pay to the surviving spouse the value of any10 savings or demand account or shares standing in the name of the decedent in such11 association without authorization by any court proceeding, order, or judgment,12 whether the savings account or shares belong to the separate estate of the decedent13 or to the community property regime which existed between the decedent and the14 surviving spouse, subject to the provisions of R.S. 9:1513.15 §768. Transfer of contents of safety deposit boxes by an association to succession16 representatives, legatees, heirs, minors or interdicts, their legal17 representatives, executors or administrators; authority18 A. For all purposes, an An association may deal with safety deposit boxes19 and the contents therein standing titled in the name of a deceased customer person,20 or in which the latter had an interest, in accordance with its contract with its21 customer until the association receives notice in writing specifically addressed to it22 of the death of said its customer. After receipt of such notice in writing and upon23 proper authority and upon obtaining a receipt therefor, any association may transfer24 the contents of a safety deposit box standing in the name of a deceased person or in25 which the latter had an interest, to the succession representative, the surviving26 spouse, heirs, or legatees of the deceased.27 B. Regardless whether an association has received written notice of the28 death of its customer and regardless of any prior action by an association to29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 7 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. freeze or restrict access and transactions related to its deceased customer's1 safety deposit box, upon receipt of letters testamentary, letters of2 administration, or letters of independent administration establishing the3 appointment of an authorized succession representative, an association may4 grant access to or allow the transfer the contents of a safety deposit box titled5 in the name of its deceased customer, to the succession representative. The6 letters of the succession representative shall constitute full and proper authority7 for allowing the succession representative to access, remove, or transfer the8 contents of a safety deposit box titled in the name of the deceased customer, and9 the association shall have no liability related to such activity or transaction10 involving its deceased customer's safety deposit box. The association may11 continue to follow the direction of the authorized succession representative12 related to safety deposit boxes of its deceased customer, unless and until the13 association receives a subsequent order specifically naming and directing the14 association to cease following the written direction of the succession15 representative or receives a subsequent order limiting or terminating the16 authority of or replacing the succession representative. or the judgment17 recognizing and putting the heirs in possession issued by a court of competent18 jurisdiction, and accompanied by letters of tutorship or curatorship of the heirs who19 are not sui juris, shall constitute proper authority for making the transfer, which,20 when so made and receipted for, shall be full protection to the association as to any21 heir, legatee, creditor, or other person having rights or claims to funds or property22 of the decedent, and the association shall have no liability for any inheritance tax due23 thereon.24 C. The receipt of a judgment of possession recognizing and putting the25 legatees or heirs in possession of the deceased customer's estate shall constitute26 full and proper authority for the association holding a safety deposit box or27 other property titled in the name of the deceased customer's name to transfer28 those assets to the legatees or heirs entitled to such property under the29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 8 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. judgment of possession, and when an association makes such a transfer, there1 shall be full protection to the association against any heir, legatee, creditor, or2 other person having any right or claim to funds or property of its deceased3 customer, and the association shall have no liability related to such transfer or4 transaction involving its deceased customer's safety deposit box or money or5 other property in the association's possession, and the association shall have no6 liability for any inheritance tax due thereon.7 C. D. Upon proper authority and upon obtaining a receipt therefor, an8 association may transfer the contents of a safety deposit box belonging to an interdict9 or a minor to the legal representative of such interdict or minor. The letters issued10 to the legal representative by a court of competent jurisdiction shall constitute proper11 authority for making the transfer, which when so made and receipted for, shall be full12 protection to the association.13 D. The receipt to be obtained by the association may be in any form, but it14 shall be signed either by the succession representative accompanied by a certified15 copy of the letters or by the heirs or the legal representatives of the heirs who are not16 sui juris, accompanied by a certified copy of the judgment recognizing and putting17 the heirs in possession and by a certified copy of the letters of tutorship or18 curatorship of the legal representatives of the heirs who are not sui juris. In the case19 of minors or interdicts, the receipt shall be signed by the legal representative of the20 minor or interdict and accompanied by a certified copy of the letters issued to such21 legal representative.22 E. Conclusive proof to the association of the letters testamentary, letters23 of administration, or letters of independent administration of the succession24 representative, or of the judgment of possession, and of the jurisdiction of the25 court rendering them, shall be as provided in R.S. 6:325(D).26 Section 2. This Act shall become effective upon signature by the governor or, if not27 signed by the governor, upon expiration of the time for bills to become law without signature28 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 SB NO. 190 SLS 13RS-161 ENGROSSED Page 9 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. vetoed by the governor and subsequently approved by the legislature, this Act shall become1 effective on the day following such approval.2 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Michelle Ducharme. DIGEST Gallot (SB 190) Present law provides for the disposition of contents of a safety deposit box and money and any other property of a deceased customer of a bank. Proposed law provides that for all purposes, a bank may deal with a safety deposit box or money and any other property in its possession titled in the name of a deceased customer in accordance with its contract with its deceased customer until the bank receives notice in writing specifically addressed to it of the death of its customer. Present law provides that after a bank receives written notice of the death of its customer and upon proper authority and upon obtaining a receipt therefor, any bank may transfer the contents of a safety deposit box or any money and other property in its possession standing in the name of a deceased person or in which the latter had an interest to the succession representative, the surviving spouse, heirs, or legatees of the deceased. Present law provides that the letters of the succession representative or the judgment recognizing and putting the heirs in possession issued by a court of competent jurisdiction and accompanied by letters of tutorship or curatorship of the heirs who are not sui juris shall constitute proper authority for making the transfer which, when so made and receipted for, shall be full protection to the bank as to any heir, legatee, creditor, or other person having rights or claims to funds or property of the decedent. Proposed law provides that regardless whether a bank receives written notice of the death of its customer and regardless of any prior action by a bank to freeze or restrict access and transactions related to its deceased customer's accounts or safety deposit box, upon receipt of letters testamentary, letters of administration, or letters of independent administration establishing the appointment of an authorized succession representative, a bank may grant access to or allow the transfer of contents of a safety deposit box or money or other property titled in the name of the bank's deceased customer to the succession representative. Proposed law provides that the letters of the succession representative shall constitute full and proper authority for allowing the succession representative to access, withdraw, or transfer money or property of the bank's deceased customer, and the bank shall have no liability related to such activity or transaction involving the deceased customer's safety deposit box or money or other property in the bank's possession. Proposed law provides that the bank may continue to follow the direction of the authorized succession representative related to the safety deposit box or money or other property of its deceased customer, unless and until the bank receives a subsequent order specifically naming and directing the bank to cease following the written direction of the succession representative, or the bank receives a subsequent order limiting or terminating the authority of or replacing the succession representative. Proposed law provides that the judgment of possession recognizing and putting the legatees or heirs in possession of the bank's deceased customer's estate shall constitute full and proper authority for the bank holding a safety deposit box or money or other property titled in the name of its deceased customer to transfer those assets to the legatees or heirs entitled to such property under the judgment of possession. SB NO. 190 SLS 13RS-161 ENGROSSED Page 10 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that when a bank makes such a transfer, the bank shall have full protection from any heir, legatee, creditor, or other person having any right or claim to money or other property of its deceased customer. Proposed law provides that the bank shall have no liability related to any such transfer or transaction involving its deceased customer's safety deposit box or money or other property in the bank's possession. Present law provides that conclusive proof to the bank of the letters or judgment and of the jurisdiction of the court rendering them shall result from copies thereof, duly certified when rendered by a court of this state, or certified according to the Acts of Congress when rendered by a court of any other state, or certified according to the law of the place when rendered by any other state or certified according to the law of the place with the genuineness of the certification attested by a consular agent of the United States when rendered by a court of any foreign country. Proposed law provides that conclusive proof to the bank of the letters testamentary, letters of administration, or letters of independent administration of the succession representative shall be the same as the proof required in present law. Present law provides for the form of the receipt of the written notice by the bank of the death of its customer. Proposed law removes this provision of law. Present law provides that upon the death of a member or depositor, the rights of membership of a depositor shall continue in the executor, administrator, heirs, or surviving spouse of the deceased depositor, as the case may be. Proposed law provides that upon the death of a member or depositor, the rights of membership or of a depositor shall continue in the succession representatives, legatees, or heirs of the deceased depositor, as the case may be. Present law provides that the association shall transfer these shares or savings accounts and all dividends or interest which have accrued on them as provided by law. Proposed law provides that for all purposes, an association may deal with money, on deposit or otherwise, held by an association in a savings account, demand account, deposit account, share account, and with any other property, titled in the name of its deceased member or depositor in accordance with its contract with its deceased member or depositor until the association receives notice in writing specifically addressed to it of the death of the member or depositor. Present law provides that upon proper authority and surrender of any certificates and evidences of ownership of a decedent in shares or savings accounts of an association, by any duly qualified administrator or executor of the succession of such decedent, every association may pay the withdrawal value of shares, or savings accounts and any dividends or interest that may have accrued thereon in its possession belonging to a deceased person, to the administrator or executor of the deceased's succession. Present law provides that the letters of the succession representative issued by a court shall constitute a proper authority for making payment to such administrator or executor, shall constitute full protection to the association making any such payment, and the association shall have no liability for any inheritance tax due thereon. Proposed law removes these provisions of present law. Proposed law provides that regardless whether the association has received written notice SB NO. 190 SLS 13RS-161 ENGROSSED Page 11 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the death of its member or depositor and regardless of any prior action by an association to freeze or restrict access and transactions related to its deceased member's or depositor's shares or accounts, upon receipt of the letters testamentary, letters of administration, or letters of independent administration establishing the appointment of an authorized succession representative, an association may grant access to or allow the transfer of money or other property titled in the name of its deceased member or depositor to the succession representative. Proposed law provides that the letters of the succession representative shall constitute full and proper authority for the association to grant access to or allow the transfer of the withdrawal value of share accounts, demand accounts, deposit accounts, or savings accounts and any dividends or interest that may have accrued thereon or any money or property held in the name of the deceased member or depositor to such succession representative, and the association shall have no liability related to such activity or transactions involving its deceased member's or depositor's money or property in its possession, and the association shall have no liability for any inheritance tax due thereon. Proposed law provides that the association may continue to follow the direction of the authorized succession representative related to the money or other property titled in its deceased member's or depositor's name, unless and until the association receives a subsequent order specifically naming the association and directing the association to cease following the written direction of the succession representative, or the association receives a subsequent order limiting or terminating the authority of or replacing the succession representative. Proposed law provides that the judgment of possession recognizing and putting the legatees or heirs in possession of the deceased customer's estate shall constitute full and proper authority for the association holding a safety deposit box or money or other property titled in the name of its deceased member or customer to transfer those assets to the legatees or heirs entitled to such property under the judgment of possession, and when an association makes such a transfer, there shall be full protection to the association against any heir, legatee, creditor, or other person having any right or claim to money or property of its deceased customer. Proposed law further provides that the association shall have no liability related to such transfers or transactions involving its deceased customer's money or other property in the association's possession. Proposed law provides that conclusive proof to the association of the letters testamentary, letters of administration, or letters of independent administration of the succession representative, or of the judgment of possession, and of the jurisdiction of the court rendering them, shall be as provided by law. Present law provides that an association may deal with safety deposit boxes and the contents therein in the name of a deceased person, or in which the latter had an interest, in accordance with its contract with its customer until the association receives notice in writing addressed to it of the death of its customer. Present law provides that after receipt of such notice in writing and upon proper authority and upon obtaining a receipt therefor, any association may transfer the contents of a safety deposit box standing in the name of a deceased person or in which the latter had an interest, to the succession representative, the surviving spouse, heirs, or legatees of the deceased. Proposed law removes the provisions of present law. Proposed law provides that regardless whether an association has received written notice of the death of its customer and regardless of any prior action by an association to freeze or restrict access and transactions related to its deceased customer's safety deposit box, upon SB NO. 190 SLS 13RS-161 ENGROSSED Page 12 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. receipt of letters testamentary, letters of administration, or letters of independent administration establishing the appointment of an authorized succession representative, an association may grant access to or allow the transfer of the contents of a safety deposit box titled in the name of its deceased customer, to the succession representative, and an association may otherwise follow whatever directions its receives from the succession representative. Proposed law provides that the succession representative shall constitute full and proper authority for allowing the succession representative to access, remove, or transfer the contents of a safety deposit box titled in the name of the deceased customer, and the association shall have no liability related to such activity or transaction involving its deceased customer's safety deposit box. Proposed law provides that the association may continue to follow the direction of the authorized succession representative related to safety deposit boxes of its deceased customer, unless and until the association receives a subsequent order specifically naming and directing the association to cease following the written direction of the succession representative or receives a subsequent order limiting or terminating the authority of or replacing the succession representative. Proposed law provides that the receipt of a judgment of possession recognizing and putting the legatees or heirs in possession of the deceased customer's estate shall constitute full and proper authority for the association holding a safety deposit box or other property titled in the name of the deceased customer's name to transfer those assets to the legatees or heirs entitled to such property under the judgment of possession, and when an association makes such a transfer, there shall be full protection to the association against any heir, legatee, creditor, or other person having any right or claim to funds or property of its deceased customer, and the association shall have no liability related to such transfer or transaction involving its deceased customer's safety deposit box or money or other property in the association's possession, and the association shall have no liability for any inheritance tax due thereon. Present law provides upon proper authority and upon obtaining a receipt therefor, an association may transfer the contents of a safety deposit box belonging to an interdict or a minor to the legal representative of such interdict or minor. The letters issued to the legal representative by a court of competent jurisdiction shall constitute proper authority for making the transfer, which when so made and receipted for, shall be full protection to the association. Proposed law retains present law but removes the requirement of obtaining a receipt. Present law provides that the receipt to be obtained by the association may be in any form, but it shall be signed either by the succession representative accompanied by a certified copy of the letters or by the heirs or the legal representatives of the heirs who are not sui juris, accompanied by a certified copy of the judgment recognizing and putting the heirs in possession and by a certified copy of the letters of tutorship or curatorship of the legal representatives of the heirs who are not sui juris. In the case of minors or interdicts, the receipt shall be signed by the legal representative of the minor or interdict and accompanied by a certified copy of the letters issued to such legal representative. Proposed law removes the provisions of present law. Proposed law provides that conclusive proof to the association of the letters testamentary, letters of administration, or letters of independent administration of the succession representative, or of the judgment of possession, and of the jurisdiction of the court rendering them, shall be as provided by law. Effective upon signature of the governor or lapse of time for gubernatorial action. SB NO. 190 SLS 13RS-161 ENGROSSED Page 13 of 13 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (Amends R.S. 6:325, 767, and 768) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Commerce, Consumer Protection, and International Affairs to the original bill 1. Changes the effective date from August 1, 2013 to effective upon signature of the governor or lapse of time for gubernatorial action.