Opinion ID: 1170459
Heading Depth: 1
Heading Rank: 1

Heading: Local Federal Savings and Loan Association of Oklahoma City

Text: and for the issuance of evidence of membership in the approved form in the joint names of the undersigned as joint tenants with the right of survivor ship and not as tenants in common. Receipt is hereby acknowledged of a copy of the charter and by-laws of said association. Specimens of the signatures of the undersigned are shown below and the association is hereby authorized to act without further inquiry in accordance with writings bearing any such signature; it being understood and agreed that any one of the undersigned who shall first act shall have power to act in all matters related to the membership and any share account in said association held by the undersigned whether the other person or persons named in the certificate be living or not. The repurchase or redemption value of any such share account or other rights relating thereto may be paid or delivered in whole or in part to any one of the undersigned, who shall first act, and such payment or delivery or a receipt or acquittance signed by any one of the undersigned shall be a valid and sufficient release and discharge of said association. (1) Signature F.A. Cloonan George R. McComber... ... ... .... ... ... . Street Address Street Address ... ... ... .... ... ... . City and State City and State Dated 6-16-44 Introduced by This certificate issued pursuant to this application for membership of joint holders must be filled out by inserting in the first blank space the names of the joint holders; for example, `John Doe and Richard Roe,' immediately followed by the words: `as joint tenants with the right of survivorship and not as tenants in common.' Joint tenants with the right of survivorship constitute one member as a partnership constitutes one member. (b) Membership of joint holders (with right of survivorship) of a share account The defendant argues that joint tenancy with right of survivorship is not regarded with favor in Oklahoma. Citing Clinton v. Clinton, 187 Okla. 144, 101 P.2d 609, Kilgore v. Parrott, 197 Okla. 77, 168 P.2d 886. However, the  cited cases expressly state that the rule has no application where it is clearly shown upon the face of the instrument that a joint tenancy with the right of survivorship was intended. The defendant also contends that Title 60 O.S. 1951 § 74 (Laws 1945, p. 213), which expressly authorizes the execution of an instrument creating a joint tenancy, has no application, as the Act was enacted subsequent to the transaction here involved. The Act, however, provides: The provisions of this act shall apply to all estates in joint tenancy or tenancy by entirety in either real or personal property heretofore or hereafter created. We need not here decide whether the 1945 Act, supra, may be applied retroactively, for we have uniformly held that joint tenancies, with right of survivorship, are enforceable in Oklahoma; neither is the legal effect of a joint tenancy as defined in the statutory enactment, supra, modified by the absence of the term or the survivor of them. In the case of Draughon et ux. v. Wright, Adm'x, 200 Okla. 198, 191 P.2d 921, we held: We cannot agree that 60 O.S. 1945 Supp. § 74 creates a statutory joint tenancy without survivorship because survivorship is not mentioned in that statute. The term `joint tenancy' had a well defined meaning at common law, and, since the Legislature did not define the term or use language indicating a contrary intention, we must presume that it used the term in its technical common law sense. The foregoing decision was based upon the common law meaning of a joint tenancy with survivorship. The common law, as modified by constitutional and statutory law, judicial decisions and the condition and wants of the people, shall remain in force in aid of the general Statutes of Oklahoma. Title 12 O.S. 1951 § 2. Blackstone's Commentaries upon common law as applied to joint tenancies makes the following observations. The creation of an estate in joint tenancy depends upon the wording of the deed or devise, by which the tenants claim title, and can only arise by the act of the parties; for joint tenants have one and the same interest. He further says that the interest of the two joint tenants is not only equal or similar, but also is one and the same, and that each of the two joint tenants has a concurrent interest in the whole; and therefore, on the death of his companion, the sole interest in the whole estate remains to the survivior. When Mrs. Cloonan made the transfer of her accounts in the associations to herself and plaintiff in the form and manner shown by the record, the joint tenancy came into being. The joint tenants then applied for a membership and a savings share account in the associations. The applications requested that: Evidence of membership in the approved form in the joint names of the undersigned as joint tenants with the right of survivorship and not as tenants in common. A reading of the application card and agreement executed by F.A. Cloonan and George R. McComber, as joint tenants, supra, conforms to the pattern of Tit. 18, sec. 212b (Session Laws of 1937, p. 319, § 3). The legislative act in effect was designed to protect the associations by giving them a statutory acquittance upon the payment of the funds in the joint tenancy account, either to the joint tenant who first acts or in case of no action during the lifetime of a joint tenant that payment to the survivor shall give the association a full acquittance. Although the account stands in the joint names of two persons such a joint account creates a single membership in the association which is subject to disposal by either joint tenant during their lifetime as between the joint tenants and the association. The statute does not modify in any degree the right, title or interest in the  joint account, or the proceeds thereof, as between one joint tenant and the other joint tenant as the law of joint tenancy establishes their rights. The statute, supra, reads: Every building and loan association and every Federal Savings and Loan Association may issue shares or membership certificates in the joint names of two or more persons or their survivor, in which event any of such persons who shall first act, shall have power to act in all matters relating to the shares or the membership, whether the other person or persons named in such shares or membership certificates be living or not. Such a joint account shall create a single membership in an association. The repurchase or redemption value of an account issued in joint names and dividends thereon, or other rights relating thereto, may be paid or delivered, in whole or in part, to any of such persons who shall first act, whether the other person or persons be living or not. The payment or delivery to any such person or a receipt or acquittance signed by any such person to whom any such payment or any such delivery of rights is made, shall be a valid and sufficient release and discharge of an association for the payment or delivery so made. Under the quoted statute and the application for the transfer of the share account, Mrs. Cloonan had the right to withdraw or transfer the funds as she did so far as the associations were concerned. This transfer had it been to an innocent third person for value would have been effective so far as plaintiff is concerned. However, the defendant having full knowledge of the circumstances connected with the creation of the joint tenancy originally, and not being an innocent third party purchaser for value, took his interest in the second joint tenancy subject to plaintiff's vested right, which right may now be invoked and enforced as against the funds to the credit of the defendant, Watkins, in possession of both associations. Defendant further contends that the gift of funds by Mrs. Cloonan to the plaintiff was not effective for the reason that she had the right to the use of the funds during her lifetime. She had this independent right both under the application agreement and as a joint tenant, as defined by the Act, supra. The record, however, discloses that Mrs. Cloonan at no time withdrew any of the funds from the associations after their transfer to herself and the plaintiff. As between Mrs Cloonan and the plaintiff, as joint tenants, the attempted transfer of the funds in the associations to herself and the defendant, Watkins, as joint tenants, was ineffectual and subject to the vested rights of the plaintiff to recover such funds upon tracing them into the hands or under control of the defendant as herein outlined. We find no merit in defendant's contention that the assessment of cost against him was erroneously entered. Both parties to the present action have submitted elaborate briefs containing citation of authorities from sister states, and analysis and minute consideration of which will unduly lengthen the opinion. Moreover, we are of the view that the statute and decisions here referred to are decisive of the question presented. The judgment of the trial court is, therefore, affirmed. HALLEY, V.C.J., and WELCH, CORN, GIBSON, and DAVISON, JJ., concur.