2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 7 - DEPOSITS IN BANKS (§§ 45-2-701 — 45-2-712) › Section 45-2-703 - Deposits in two or more names - Multiple-party deposit accounts

(a)
When a deposit has been made or is hereafter made, in any bank, in the names of two (2) or more persons, payable to either, or survivor, the deposit, or any part of the deposit, or any interest or dividend on the deposit, may be paid to either person, whether the others are living or not; and the receipt or acquittance of the person so paid shall be a valid and sufficient release and discharge to the bank for any payment so made. Any balance so created, including, but not limited to, any balance held by spouses, shall be subject to assignment by, or the claim of any creditor of, either depositor, as if the depositor were the sole owner of the funds; provided, that if the creditor realizes its claim by any means other than enforcement of an assignment, pledge, or the grant of a security interest made by any one (1) of the depositors, any other depositor not indebted to the creditor may, by commencing a separate action against the creditor, establish the rights that the depositor may have in the funds.
(b)
A bank paying a survivor in accordance with subsection (a) is not liable for any estate, inheritance or succession tax due this state.
(c)
As used in subsections (c)-(f), "multiple-party deposit account" means a deposit account, including a certificate of deposit, established in the names of, payable to, or in form subject to withdrawal by two (2) or more natural persons, or any of them, including, but not limited to, an account of the type described in subsection (a).
(d)
(1)
When opening a multiple-party deposit account, or amending an existing deposit account so as to create a multiple-party deposit account, each bank shall utilize account documents that enable the depositor to designate ownership interest therein in terms substantially similar to the following:
(A)
Joint tenants with right of survivorship;
(B)
Additional authorized signatory; and
(C)
Other deposit designations that may be acceptable to the bank.
(2)
Account documents that enable the depositor to indicate the depositor's intent of the ownership interest in any multiple-party deposit account may include any of the following:
(A)
The signature card;
(B)
The deposit agreement;
(C)
A certificate of deposit;
(D)
A document confirming purchase of a certificate of deposit; or
(E)
Other documents provided by the bank or deposit institution that indicate the intent of the depositor.
(e)
Accounts described in subsection (c) shall establish the following interests:
(1)
A designation of joint tenants with right of survivorship, or substantially similar language, shall be conclusive evidence in any action or proceeding of the intentions of all named that title vests in the survivor;
(2)
The designation of a person as an additional authorized signatory, or substantially similar language, shall be conclusive evidence in any action or proceeding that the person so designated has power of attorney with respect to the account and is not an owner of the account;
(3)
Other designations acceptable to the bank shall establish interests in accordance with their respective provisions;
(4)
In the absence of any specific designation in accordance with subsection (d), property held under the title, tenancy by the entireties, carries a right of survivorship; property held under the title, joint tenancy, carries no right of survivorship unless a contrary intention is expressly stated. Any other person to whose order the accounts or certificate of deposit is subject shall be presumed to have power of attorney with respect to the account or certificate of deposit and not to be an owner of the account or certificate of deposit. The presumptions may be rebutted by clear and convincing evidence presented in the course of legal or equitable proceedings. Final judicial determinations contrary to the presumptions shall not affect a bank's earlier payment in accordance therewith, or the limitations on liability conferred by §
45-2-707(a) and (b)
; and
(5)
Absent a specific designation in the account documents referenced in subsection (d) that an account holds funds of a tenancy by the entirety, funds deposited into an account held by spouses in accordance with this section are not held by a tenancy by the entirety.
(f)
Without incurring any liability, any bank may, but shall not be required to, provide to depositors disclosures in form similar to the following:
(1)
Joint tenants with right of survivorship.
This designation means that the deposit account or certificate of deposit shall become the property of each owner as joint tenants, and that the survivor is entitled to all moneys in the account or represented by the certificate even if the first person to die had a will specifically directing disposition to someone else. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the survivor upon the death of any joint tenant; and
(2)
Additional authorized signatory.
This designation means that the person named as additional authorized signatory shall have authority during the lifetime of one (1) or more owners to withdraw moneys from the deposit account or represented by the certificate of deposit. Moneys remaining in the account or represented by the instrument upon the owner's death shall become part of the deceased owner's estate, subject to the deceased person's will or applicable law if the deceased person left no will. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the authorized signatory until notified of revocation of the authority.
(g)
Without incurring any liability, any bank may, but is not required to, remove a joint owner on a multiple-party deposit where two (2) or more persons are joint tenants with right of survivorship upon the written request of another person designated as a joint owner of the account.
(h)
Subsections (c)-(g) do not apply to any accounts in existence prior to January 1, 1989.
Amended by 2020 Tenn. Acts, ch. 605, Secs.s7, s8 eff. 3/20/2020.
Amended by 2014 Tenn. Acts, ch. 597, s 1, eff. 3/28/2014.
Acts 1969, ch. 36, § 1 (3.204); T.C.A., § 45-407; Acts 1983, ch. 110, § 1; 1988, ch. 926, §§ 1, 2.