N.J. Admin. Code § 3:1-12.4

Current through Register Vol. 56, No. 8, April 15, 2024

Section 3:1-12.4 - Specific content of deposit contract

(a) The following information must be included in all multiple party account contracts:

1. A statement that the account is subject to the provisions of the Multiple Party Deposit Account Act, 17:16I-1 et seq.

2. Express provisions that:

i. Identify the type of account; that is, whether it is a joint account, a P.O.D. account, or a trust account; and

ii. Specify the present interests of all parties with an explanation that parties will share equally in the absence of proof of net contribution unless the parties expressly agree otherwise; and

iii. Specify that unless otherwise provided there is a right of survivorship among parties, but the account must expressly provide for a right of survivorship between or among two or more P.O.D. payees or trust beneficiaries.

3. A statement of no liability to the financial institutions for payments made pursuant to the Act. Any multiple party account may be paid, on request, to any one or more of the parties. The financial institution may also make payment from a multiple-party account, including payment of the entire account balance: pursuant to any statutory or common law right of set off, levy, attachment or other valid legal process or court order, relating to the interest of any one or more of the parties; and on request to a trustee in bankruptcy, receiver in any state or Federal insolvency proceeding, or other duly authorized insolvency representative of any one or more of the parties. The financial institutions shall not be required to determine net contributions. If the information in this subsection was not provided in the account contract, it may be provided to the parties by subsequent notice.

4. The necessary form of notice required to effectively change the terms of the deposit contract. Where there is more than one party, that is, joint accounts or two or more original payees in P.O.D. accounts or two or more trustees in trust accounts, the financial institution may require that the party giving the notice pursuant to 17:16I-6 or 17:16I-12 provide the current address of every other party affected by the notice if such address is known.

5. An acknowledgement of having read the contract which must be signed by all parties.

(b) Model forms may be found in Appendix A to this chapter, incorporated herein by reference.

N.J. Admin. Code § 3:1-12.4

Amended by R.1991 d.48, effective 2/4/1991.
See: 22 New Jersey Register 3425(a), 23 New Jersey Register 294(b).
Added new (b) referencing Model Forms in Appendix A.
Administrative correction.
See: 25 New Jersey Register 2860(a).
Amended by R.1996 d.241, effective 5/20/1996.
See: 28 New Jersey Register 1440(a), 28 New Jersey Register 2543(a).
Rewrote (a)3.
Amended by R.2001 d.112, effective 4/2/2001.
See: 33 New Jersey Register 213(a), 33 New Jersey Register 1087(a).
In (a)1, deleted "(P.L. 1979, c.491)".