New Jersey Administrative Code › Title 3 - BANKING › Chapter 1 - GENERAL PROVISIONS › Subchapter 12 - MULTIPLE PARTY DEPOSIT ACCOUNTS › Section 3:1-12.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Act" means
				  17:16I-1 et seq., which may also
				  be cited as "Multiple Party Deposit Account Act."
"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.
"Beneficiary" means a person named in a trust account as one
				  for whom a party to the account is named as trustee.
"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, and savings and loan associations.
"Joint account" means an account payable on request to one or
				  more of two or more parties whether or not mention is made of any right of
				  survivorship, and regardless whether the names of the parties are stated in the
				  conjunctive or in the disjunctive.
"Multiple party account" means any of the following types of
				  account: a joint account; a P.O.D. account; or 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 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.
"Net contribution" means the contribution of a party to a
				  joint account as of any given time which 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 contributions is in question.
"Party" means a person who, by the terms of the account, has
				  a present right, subject to request, 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.
"Payment" means a withdrawal, payment on check or other
				  directive of a party, and any pledge of sums on deposit by a party of any
				  setoff, or reduction or other disposition of all or part of an account pursuant
				  to a pledge. Payment to a third person pursuant to check or otherwise is a
				  withdrawal.
"P.O.D. account" means an account payable on request to one
				  person during lifetime and on his death to one or more P.O.D. payees, or to one
				  or more persons during their lifetimes and on the death of all of them to one
				  or more P.O.D. payees.
"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 or more
				  persons.
"Request" means a proper request for withdrawal, or a check
				  or order for payment, including special requirements concerning necessary
				  signatures and regulations of financial institutions. A notice of intent to
				  withdraw is treated as a request for withdrawal.
"Trust account" means an account in the name of one or more
				  parties as trustee for one 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 of a trust agreement which has
				  significance apart from the account or a fiduciary account arising from a
				  fiduciary relation such as attorney-client.
"Written notice or order" means the notice or order necessary
				  to access or affect an account which notice is effecting for a particular
				  transaction from the time it is brought to the attention of the individual
				  conducting that transaction.