Opinion ID: 1675397
Heading Depth: 1
Heading Rank: 6

Heading: The Stock Issue

Text: It is not disputed that the decedent and his son, Hoyt, owned shares of stock in Fort Payne Bank. This stock was held in their names as joint tenants with right of survivorship. In time, the bank joined a holding company, and the bank stock was exchanged for shares in Alabama Bancorporation. The decedent and his son, Hoyt, received shares of the holding company stock. The certificates of stock in the holding company were issued to B. S. Durham and Hoyt Durham, JT TEN. The reverse side of the certificate defines JT TEN as joint tenants with right of survivorship and not as tenants in common. The appellant argues that the legend on the reverse side of the certificate is not a part thereof and that § 35-4-7, Code of Ala. 1975, provides that there is no survivorship between joint tenants unless it is stated in the instrument creating such tenancy that such tenancy is with right of survivorship.... Although we agree with the appellant that § 35-4-7 requires that the instrument itself state the incidence of survivorship, we hold that it did here by virtue of § 10-2A-40(f), Code of Ala. 1975, which provides: (f) Abbreviations may be used in the inscribing of certificates representing shares of stock. Without limiting the use of other abbreviations, however, the following or substantially similar abbreviations may be used in the inscribing of such certificates only if explained on the face or back of the certificates, and shall be construed as though they were written out in full and shall be accorded the meaning ascribed herein: Abbreviation: Meaning: TEN COM As tenants in common JT TEN As joint tenants with right of survivorship and not as tenants in common.