By: Seliger S.B. No. 714
(In the Senate - Filed February 1, 2017; February 21, 2017,
read first time and referred to Committee on Business & Commerce;
April 10, 2017, reported favorably by the following vote: Yeas 9,
Nays 0; April 10, 2017, sent to printer.)
Click here to see the committee vote
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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