Texas 2017 - 85th Regular

Texas Senate Bill SB714 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Seliger S.B. No. 714
2		-	(Geren)
	1	+	S.B. No. 714
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to certain account disclosures provided by a financial
8	6		institution to a customer.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 113.052, Estates Code, is amended to
11	9		read as follows:
12	10		Sec. 113.052. FORM. A financial institution may use the
13	11		following form to establish the type of account selected by a party:
14	12		UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION
15	13		FORM NOTICE: The type of account you select may determine how
16	14		property passes on your death. Your will may not control the
17	15		disposition of funds held in some of the following accounts. You
18	16		may choose to designate one or more convenience signers on an
19	17		account, even if the account is not a convenience account. A
20	18		designated convenience signer may make transactions on your behalf
21	19		during your lifetime, but does not own the account during your
22	20		lifetime. The designated convenience signer owns the account on
23	21		your death only if the convenience signer is also designated as a
24	22		P.O.D. payee or trust account beneficiary.
25	23		Select one of the following accounts by placing your initials
26	24		next to the account selected:
27	25		___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON
28	26		DEATH) DESIGNATION. The party to the account owns the account. On
29	27		the death of the party, ownership of the account passes as a part of
30	28		the party's estate under the party's will or by intestacy.
31	29		Enter the name of the party:
32	30		________________________________________________________________
33	31		Enter the name(s) of the convenience signer(s), if you want
34	32		one or more convenience signers on this account:
35	33		________________________________________________________________
36	34		________________________________________________________________
37	35		___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON
38	36		DEATH) DESIGNATION. The party to the account owns the account. On
39	37		the death of the party, ownership of the account passes to the
40	38		P.O.D. beneficiaries of the account. The account is not a part of
41	39		the party's estate.
42	40		Enter the name of the party:
43	41		________________________________________________________________
44	42		Enter the name or names of the P.O.D. beneficiaries:
45	43		________________________________________________________________
46	44		________________________________________________________________
47	45		Enter the name(s) of the convenience signer(s), if you want
48	46		one or more convenience signers on this account:
49	47		________________________________________________________________
50	48		________________________________________________________________
51	49		___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF
52	50		SURVIVORSHIP. The parties to the account own the account in
53	51		proportion to the parties' net contributions to the account. The
54	52		financial institution may pay any sum in the account to a party at
55	53		any time. On the death of a party, the party's ownership of the
56	54		account passes as a part of the party's estate under the party's
57	55		will or by intestacy.
58	56		Enter the names of the parties:
59	57		________________________________________________________________
60	58		________________________________________________________________
61	59		________________________________________________________________
62	60		Enter the name(s) of the convenience signer(s), if you want
63	61		one or more convenience signers on this account:
64	62		________________________________________________________________
65	63		________________________________________________________________
66	64		___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP.
67	65		The parties to the account own the account in proportion to the
68	66		parties' net contributions to the account. The financial
69	67		institution may pay any sum in the account to a party at any time.
70	68		On the death of a party, the party's ownership of the account passes
71	69		to the surviving parties.
72	70		Enter the names of the parties:
73	71		________________________________________________________________
74	72		________________________________________________________________
75	73		Enter the name(s) of the convenience signer(s), if you want
76	74		one or more convenience signers on this account:
77	75		________________________________________________________________
78	76		________________________________________________________________
79	77		___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP
80	78		AND P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the
81	79		account own the account in proportion to the parties' net
82	80		contributions to the account. The financial institution may pay
83	81		any sum in the account to a party at any time. On the death of the
84	82		last surviving party, the ownership of the account passes to the
85	83		P.O.D. beneficiaries.
86	84		Enter the names of the parties:
87	85		________________________________________________________________
88	86		________________________________________________________________
89	87		Enter the name or names of the P.O.D. beneficiaries:
90	88		________________________________________________________________
91	89		________________________________________________________________
92	90		Enter the name(s) of the convenience signer(s), if you want
93	91		one or more convenience signers on this account:
94	92		________________________________________________________________
95	93		________________________________________________________________
96	94		___ (6) CONVENIENCE ACCOUNT. The parties to the account own
97	95		the account. One or more convenience signers to the account may
98	96		make account transactions for a party. A convenience signer does
99	97		not own the account. On the death of the last surviving party,
100	98		ownership of the account passes as a part of the last surviving
101	99		party's estate under the last surviving party's will or by
102	100		intestacy. The financial institution may pay funds in the account
103	101		to a convenience signer before the financial institution receives
104	102		notice of the death of the last surviving party. The payment to a
105	103		convenience signer does not affect the parties' ownership of the
106	104		account.
107	105		Enter the names of the parties:
108	106		________________________________________________________________
109	107		________________________________________________________________
110	108		Enter the name(s) of the convenience signer(s):
111	109		________________________________________________________________
112	110		________________________________________________________________
113	111		___ (7) TRUST ACCOUNT. The parties named as trustees to the
114	112		account own the account in proportion to the parties' net
115	113		contributions to the account. A trustee may withdraw funds from the
116	114		account. A beneficiary may not withdraw funds from the account
117	115		before all trustees are deceased. On the death of the last
118	116		surviving trustee, the ownership of the account passes to the
119	117		beneficiary. The trust account is not a part of a trustee's estate
120	118		and does not pass under the trustee's will or by intestacy, unless
121	119		the trustee survives all of the beneficiaries and all other
122	120		trustees.
123	121		Enter the name or names of the trustees:
124	122		________________________________________________________________
125	123		________________________________________________________________
126	124		Enter the name or names of the beneficiaries:
127	125		________________________________________________________________
128	126		________________________________________________________________
129	127		Enter the name(s) of the convenience signer(s), if you want
130	128		one or more convenience signers on this account:
131	129		________________________________________________________________
132	130		________________________________________________________________
133	131		ACKNOWLEDGMENT: I acknowledge that I have read each
134	132		paragraph of this form and have received disclosure of the
135	133		ownership rights to the accounts listed above. I have placed my
136	134		initials next to the type of account I want.
137	135		_______________________
138	136		Signature
139	137		SECTION 2. Section 113.053, Estates Code, is amended to
140	138		read as follows:
141	139		Sec. 113.053. REQUIRED DISCLOSURE; USE OF FORM.
142	140		(a) Except as provided by Subsection (d), a [A] financial
143	141		institution shall disclose the information provided in this
144	142		subchapter to a customer before [at the time] the customer selects
145	143		or modifies an account.
146	144		(a-1) A financial institution is considered to have
147	145		disclosed the information provided in this subchapter if:
148	146		(1) the financial institution uses the form provided
149	147		by Section 113.052; and
150	148		(2) the customer signs the acknowledgment provided at
151	149		the end [places the customer's initials to the right of each
152	150		paragraph] of the form.
153	151		(b) If a financial institution varies the format of the form
154	152		provided by Section 113.052, the financial institution shall
155	153		disclose [may make disclosures in the account agreement or in any
156	154		other form that discloses] the information provided by this
157	155		subchapter[. Disclosures under this subsection must:
158	156		[(1) be given] separately from other account
159	157		information except that the financial institution may disclose that
160	158		information as part of other account documentation if the
161	159		disclosures are the first items of the documentation[;
162	160		[(2) be provided before account selection or
163	161		modification;
164	162		[(3) be printed in 14-point boldfaced type; and
165	163		[(4) if the discussions that precede the account
166	164		opening or modification are conducted primarily in a language other
167	165		than English, be in that language].
168	166		(c) The financial institution shall notify the customer of
169	167		the type of account the customer selected. This requirement is
170	168		satisfied by providing the customer with a copy of the account
171	169		opening or modification documentation, as appropriate, in paper or
172	170		electronic format.
173	171		(d) If a type of multiple-party account is not available
174	172		from a financial institution, the financial institution is not
175	173		required to make a disclosure about that type of account.
176	174		(e) This section does not apply to:
177	175		(1) a credit union; or
178	176		(2) an account that is opened or modified by a customer
179	177		who:
180	178		(A) is a legal entity, including a governmental
181	179		entity; or
182	180		(B) is acting as a legal representative for
183	181		another person.
184	182		SECTION 3. This Act applies only to a financial institution
185	183		account opened or modified on or after the effective date of this
186	184		Act. A financial institution account opened or modified before the
187	185		effective date of this Act is governed by the law in effect on the
188	186		date the account was opened or modified, and the former law is
189	187		continued in effect for that purpose.
190	188		SECTION 4. This Act takes effect September 1, 2017.
	189	+	______________________________ ______________________________
	190	+	President of the Senate Speaker of the House
	191	+	I hereby certify that S.B. No. 714 passed the Senate on
	192	+	April 26, 2017, by the following vote: Yeas 30, Nays 0, one
	193	+	present not voting.
	194	+	______________________________
	195	+	Secretary of the Senate
	196	+	I hereby certify that S.B. No. 714 passed the House on
	197	+	May 19, 2017, by the following vote: Yeas 144, Nays 0, two
	198	+	present not voting.
	199	+	______________________________
	200	+	Chief Clerk of the House
	201	+	Approved:
	202	+	______________________________
	203	+	Date
	204	+	______________________________
	205	+	Governor