O.C.G.A.
O.C.G.A.

O.C.G.A. § 7-1-353 (2019)

Adverse claims to deposits and property held in safe deposit

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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(a) Except as provided in subsections (b) and (c) of this Code section, a bank or trust company shall not be required to deny control over or access to a deposit account or property held in safe deposit (whether by the bank or trust company or in a safe-deposit box or other receptacle leased to a customer) to:

(1) The customer in whose name the account or property is held by the bank or trust company (including one of two depositors or lessees entitled to such control or access by virtue of their contract with the bank or trust company); or

(2) A person or group of persons who is authorized to draw on or control the account or property pursuant to a certified corporate resolution or other written arrangement with the customer currently on file with the bank or trust company.

(b) A bank shall be entitled to act and rely upon:

(1) A court order, distraint, levy, garnishment, or other effective legal process;

(2) An agreement of the parties concerning an adverse claim; or

(3) A claim of the type described in subsection (a) of this Code section accompanied by a bond or other indemnity adequate to protect the bank or trust company from loss as a consequence of recognizing an adverse claim.

(c) Nothing in this Code section shall impair the effect of a discharge which a bank or trust company would be entitled to under Code Section

History

Code 1933, § 41A-1606, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1984, p. 22, § 7; Ga. L. 1997, p. 143, § 7; Ga. L. 2016, p. 390, § 7-8/HB 811.

Annotations

Cross references. Disposition of property held in safe deposit box or held for safekeeping by financial institution for which department acts as receiver, § 7-1-172.

JUDICIAL DECISIONS IRS levy. - Bank did not violate O.C.G.A. § 7-1-353 by denying a depositor control over the depositor’s bank account when the bank surrendered money in the

depositor’s account pursuant to an IRS levy. Dean v. Nationsbank, 226 Ga. App. 370, 486 S.E.2d 647, 1997 Ga. App. LEXIS 609 (1997).

RESEARCH REFERENCES Am. Jur. 2d. 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 1005 et seq., 1012. C.J.S. 93 C.J.S. (Rev), Warehousemen and Safe Depositaries, § 126. ALR. Levy upon or garnishment of contents of safety deposit box, 11 A.L.R. 225; 19 A.L.R. 863; 39 A.L.R. 1215. Crediting amount to depositor’s account as precluding recovery back of money paid to bank by mistake, 25 A.L.R. 129. Insurance of bank or trust company against loss by burglary or robbery as covering contents of safety deposit boxes rented to customers, 30 A.L.R. 623. Liability for loss of contents of safedeposit box, 42 A.L.R. 1304; 133 A.L.R. 279.

Duty of bank to sureties or endorsers as to application of general deposit by principal, 70 A.L.R. 339. Right of bank to charge depositor’s indebtedness against deposit account without first exhausting collateral, 96 A.L.R. 1240. Presumption as to ownership of property in safe deposit box, 101 A.L.R. 832. Garnishment of bank deposit as affected by bank’s right, or waiver of right, to set off depositor’s indebtedness to it against deposit or apply deposit to such indebtedness, 106 A.L.R. 62; 110 A.L.R. 1268. Conflict of laws as to disposition of and relative rights to bank deposits in the names of more than one person, 25 A.L.R.2d 1240.

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1986–2022 · leading case: Fedina v. Larichev, 744 S.E.2d 72 (Ga. Ct. App. 2013).
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Fedina v. Larichev, 744 S.E.2d 72 (Ga. Ct. App. 2013). · cites it 2× “Thereafter, Fedina filed an adverse claim bond pursuant to OCGA § 7-1-353 (b) (3), seeking access to a safe deposit box owned by Larichev.”
Bank South, N.A. v. Harrell, 351 S.E.2d 263 (Ga. Ct. App. 1986). · cites it 2× “See OCGA § 7-1-353 (a) (1). Since the evidence shows that the check cleared the account, although Mr.”
GSR Markets Ltd. v. Valkyrie Grp., LLC (N.D. Ga. 2022). · cites it 5× “” O.C.G.A. § 7-1-353(a) (emphasis added). A bank can deviate from this obligation and deny control over an account in reliance on a court order or other legal process; an agreement of the parties; or an adverse claim accompanied by a bond or other indemnity adequate to protect…”
Dean v. Nationsbank, 486 S.E.2d 647 (Ga. Ct. App. 1997). · cites it 2× “Dean also argues that the bank violated OCGA § 7-1-353 (a) by denying him, as sole depositor, control over his bank account.”
— 7-1-353(a) — 1 case
GSR Markets Ltd. v. Valkyrie Grp., LLC (N.D. Ga. 2022). “” O.C.G.A. § 7-1-353(a) (emphasis added). A bank can deviate from this obligation and deny control over an account in reliance on a court order or other legal process; an agreement of the parties; or an adverse claim accompanied by a bond or other indemnity adequate to protect…”
— 7-1-353(b) — 1 case
GSR Markets Ltd. v. Valkyrie Grp., LLC (N.D. Ga. 2022). “” O.C.G.A. § 7-1-353(a) (emphasis added). A bank can deviate from this obligation and deny control over an account in reliance on a court order or other legal process; an agreement of the parties; or an adverse claim accompanied by a bond or other indemnity adequate to protect…”
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