5401. (a) Financial institutions may enter into multiple-party
accounts to the same extent that they may enter into single-party
accounts. Any multiple-party account may be paid, on request and
according to its terms, to any one or more of the parties or agents.
(b) The terms of the account or deposit agreement may require the
signatures of more than one of the parties to a multiple-party
account during their lifetimes or of more than one of the survivors
after the death of any one of them on any check, check endorsement,
receipt, notice of withdrawal, request for withdrawal, or withdrawal
order. In such case, the financial institution shall pay the sums on
deposit only in accordance with such terms, but those terms do not
limit the right of the sole survivor or of all of the survivors to
receive the sums on deposit.
(c) A financial institution is not required to do any of the
following pursuant to Section 5301, 5303, or any other provision of
(1) Inquire as to the source of funds received for deposit to a
multiple-party account, or inquire as to the proposed application of
any sum withdrawn from an account, for purposes of establishing net
(2) Determine any party's net contribution.
(3) Limit withdrawals or any other use of an account based on the
net contribution of any party, whether or not the financial
institution has actual knowledge of each party's contribution.
(d) All funds in an account, unless otherwise agreed in writing by
the financial institution and the parties to the account, remain
subject to liens, security interests, rights of setoff, and charges,
notwithstanding the determination or allocation of net contributions
with respect to the parties.
5402. Any sums in a joint account may be paid, on request and
according to its terms, to any party without regard to whether any
other party is incapacitated or deceased at the time the payment is
demanded; but payment may not be made to the personal representative
or heirs of a deceased party unless proof of death is presented to
the financial institution showing that the decedent was the last
surviving party or unless there is no right of survivorship under
5403. Any P.O.D. account may be paid, on request and according to
its terms, to any original party to the account. Payment may be made,
on request, to the P. O.D. payee or to the personal representative
or heirs of a deceased P.O.D. payee upon presentation to the
financial institution of proof of death showing that the P.O.D. payee
survived all persons named as original payees. Payment may be made
to the personal representative or heirs of a deceased original payee
if proof of death is presented to the financial institution showing
that the deceased original payee was the survivor of all other
persons named on the account either as an original payee or as P.O.D.
5404. Any Totten trust account may be paid, on request and
according to its terms, to any trustee. Unless the financial
institution has received written notice that the beneficiary has a
vested interest not dependent upon surviving the trustee, payment may
be made to the personal representative or heirs of a deceased
trustee if proof of death is presented to the financial institution
showing that the deceased trustee was the survivor of all other
persons named on the account either as trustee or beneficiary. A
Totten trust account may be paid to a beneficiary or beneficiaries or
the personal representative or heirs of a beneficiary or
beneficiaries if proof of death is presented to the financial
institution showing that the beneficiary or beneficiaries survived
all persons named as trustees.
5405. (a) Payment made pursuant to Section 5401, 5402, 5403, or
5404 discharges the financial institution from all claims for amounts
so paid whether or not the payment is consistent with the beneficial
ownership of the account as between parties, P.O.D. payees, or
beneficiaries, or their successors.
(b) The protection provided by subdivision (a) does not extend to
payments made after the financial institution has been served with a
court order restraining payment. No other notice or any other
information shown to have been available to a financial institution
shall affect its right to the protection provided by subdivision (a).
(c) Unless the notice is withdrawn by a subsequent writing, after
receipt of a written notice from any party that withdrawals in
accordance with the terms of the account, other than a checking
account, share draft account, or other similar third-party payment
instrument, should not be permitted, except with the signatures of
more than one of the parties during their lifetimes or of more than
one of the survivors after the death of any one of the parties, the
financial institution may only pay the sums on deposit in accordance
with the written instructions pending determination of the rights of
the parties or their successors. No liability shall attach to the
financial institution for complying with the terms of any written
notice provided pursuant to this subdivision.
(d) The protection provided by this section has no bearing on the
rights of parties in disputes between themselves or their successors
concerning the beneficial ownership of funds in, or withdrawn from,
multiple-party accounts and is in addition to, and not exclusive of,
any protection provided the financial institution by any other
provision of law.
5406. The provisions of this chapter that apply to the payment of a
Totten trust account apply to an account in the name of one or more
parties as trustee for one or more other persons if the financial
institution has no other or further notice in writing that the
account is not a Totten trust account as defined in Section 80.
5407. If a financial institution is required or permitted to make
payment pursuant to this chapter to a person who is a minor:
(a) If the minor is a party to a multiple-party account, payment
may be made to the minor or to the minor's order, and payment so made
is a valid release and discharge of the financial institution, but
this subdivision does not apply if the account is to be paid to the
minor because the minor was designated as a P.O. D. payee or as a
beneficiary of a Totten trust account.
(b) In cases where subdivision (a) does not apply, payment shall
be made pursuant to the California Uniform Transfers to Minors Act
(Part 9 (commencing with Section 3900) of Division 4), or as provided
in Chapter 2 (commencing with Section 3400) of Part 8 of Division 4.