Bill Text | History of Actions | Background | Title |
Description: Financial institutions; not allowed to use deceased customer's funds to repay its loan to customer.
Bill Text: [Introduced]
| 1 | 01/16 (H) Referred To Banks and Banking | |
| 2 | 02/05 (H) Died In Committee |
| Effective date | July 1, 2002 | |
| Disposition | Dead | |
| Deadline | General Bill/Constitutional Amendment | |
| Revenue | No | |
| Vote type required | Majority |
House Committee:
Principal Author: Guice
Title: AN ACT TO PROVIDE THAT WHEN A CUSTOMER OF A FINANCIAL INSTITUTION HAS A LOAN FROM THE FINANCIAL INSTITUTION THAT IS NOT FULLY REPAID AT THE TIME OF THE CUSTOMER'S DEATH, THE FINANCIAL INSTITUTION MAY NOT USE ANY FUNDS FROM THE CUSTOMER'S CHECKING OR SAVINGS ACCOUNTS WITH THE FINANCIAL INSTITUTION TO REPAY ANY PART OF THE LOAN AFTER THE PERSON'S DEATH, UNLESS THE CUSTOMER HAD SPECIFICALLY AUTHORIZED THE FINANCIAL INSTITUTION IN WRITING TO USE THE FUNDS IN THOSE ACCOUNTS FOR THAT PURPOSE; TO PROVIDE THAT THE FINANCIAL INSTITUTION SHALL NOT BE ALLOWED TO ACCESS THE FUNDS IN THE CUSTOMER'S ACCOUNTS UNTIL THE FINANCIAL INSTITUTION'S CLAIM AGAINST THE ESTATE OF THE DECEASED HAS BEEN PROBATED, REGISTERED AND ALLOWED; TO PROVIDE THAT THE FINANCIAL INSTITUTION SHALL HAVE NO HIGHER PRIORITY TO THE FUNDS IN THE CUSTOMER'S ACCOUNTS THAN OTHER CREDITORS OF THE CUSTOMER BECAUSE THOSE FUNDS ARE IN ACCOUNTS OF THE FINANCIAL INSTITUTION; AND FOR RELATED PURPOSES.
End Of Document
2002/html/History/HB/HB0825.htm