KRS § 391.300 — KY Code / Title XXXIV / Chapter 391 / Section 391.300
391.300 Definitions
Status: in_force

391.300 Definitions.

As used in KRS 391.305 to 391.360, unless the context otherwise requires:

(1) "Account" means a contract of deposit of funds between a depositor and a financial

institution, and includes a checking account, savings account, certificate of deposit,

share account and other like arrangement;

(2) "Beneficiary" means a person named in a trust account as one for whom a party to

the account is named as trustee;

(3) "Financial institution" means any organization authorized to do business under state

or federal laws relating to financial institutions, including, without limitation, banks

and trust companies, savings banks, building and loan associations, savings and

loan companies or associations, and credit unions;

(4) "Joint account" means an account payable on request to one (1) or more of two (2)

or more parties whether or not mention is made of any right of survivorship;

(5) A "multiple-party account" is any of the following types of account: (i) a joint

account, (ii) a P.O.D. account, or (iii) a trust account. It does not include accounts

established for deposit of funds of a partnership, joint venture, or other association

for business purposes, or accounts controlled by one (1) or more persons as the duly

authorized agent or trustee for a corporation, unincorporated association, charitable

or civic organization or a regular fiduciary or trust account where the relationship is

established other than by deposit agreement;

(6) "Net contribution" of a party to a joint account as of any given time is the sum of all

deposits thereto made by or for him, less all withdrawals made by or for him which

have not been paid to or applied to the use of any other party, plus a pro rata share

of any interest or dividends included in the current balance. The term includes, in

addition, any proceeds of deposit life insurance added to the account by reason of

the death of the party whose net contribution is in question;

(7) "Party" means a person who, by the terms of the account, has subject to request, a

present right, exercisable alone or jointly with one (1) or more other parties, to

payment from a multiple-party account. A P.O.D. payee or beneficiary of a trust

account is a party only after the account becomes payable to him by reason of his

surviving the original payee or trustee. Unless the context otherwise requires, it

includes a guardian, conservator, personal representative, or assignee, including an

attaching creditor, of a party. It also includes a person identified as a trustee of an

account for another whether or not a beneficiary is named, but it does not include

any named beneficiary unless he has a present right of withdrawal;

(8) "Payment" of sums on deposit includes withdrawal, payment on check or other

directive of a party, and any pledge of sums on deposit by a party and any set-off, or

reduction or other disposition of all or part of an account pursuant to a pledge;

(9) "Proof of death" includes a death certificate or record or report which is prima facie

proof of death;

(10) "P.O.D. account" means an account payable on request to one (1) person during

lifetime and on his death to one (1) or more P.O.D. payees, or to one (1) or more

persons during their lifetimes and on the death of all of them to one (1) or more

P.O.D. payees;

(11) "P.O.D. payee" means a person designated on a P.O.D. account as one to whom the

account is payable on request after the death of one (1) or more persons;

(12) "Request" means a proper request for withdrawal, or a check or order for payment,

which complies with all conditions of the account, including special requirements

concerning the necessary signature or number of signatures of the parties to the

account which may be required for a proper request and regulations of the financial

institution; but if the financial institution conditions withdrawal or payment on

advance notice, for purposes of KRS 391.305 to 391.360, the request for withdrawal

or payment is treated as immediately effective and a notice of intent to withdraw is

treated as a request for withdrawal;

(13) "Sums on deposit" means the balance payable on a multiple-party account including

interest, dividends, and in addition any deposit life insurance proceeds added to the

account by reason of the death of a party;

(14) "Trust account" means an account in the name of one (1) or more parties as trustee

for one (1) or more beneficiaries where the relationship is established by the form of

the account and the deposit agreement with the financial institution and there is no

subject of the trust other than the sums on deposit in the account; it is not essential

that payment to the beneficiary be mentioned in the deposit agreement. A trust

account does not include a regular trust account under a testamentary trust or a trust

agreement which has significance apart from the account, or a fiduciary account

arising from a fiduciary relation such as attorney-client;

(15) "Withdrawal" includes payment to a third person pursuant to check or other

directive of a party;

(16) A financial institution "receives" an order or notice under KRS 391.305 to 391.360

when it is duly delivered at the place of business at which the multiple-party

account was originally established or at any other place held out by the financial

institution as the place for receipt of such communication.