O.C.G.A.

O.C.G.A. § 7-1-790 (2019)

Deposits of fiduciaries

✓ 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 savings and loan association may receive deposits in the name of an administrator, executor, guardian, trustee, or other fiduciary in trust for a named or an unnamed beneficiary or beneficiaries. Such a deposit and dividends or interest thereon or other rights relating thereto may be paid or delivered, in whole or in part, to such fiduciary or may be exercised by such fiduciary without regard to any notice to the contrary so long as such fiduciary is living and until the association has received notice of the death of such fiduciary. The payment or delivery to any such fiduciary or a receipt or acquittance signed by any such fiduciary, to whom any such payment or any such delivery of rights is made, shall be a valid and sufficient release and discharge of such association for the payment or delivery so made.

History

Ga. L. 1937-38, Ex. Sess., p. 307, § 16; Code 1933, § 41A-3522, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 2016, p. 390, § 7-4/HB 811.

Annotations

Code Commission notes. Pursuant to Code Section 28-9-5, in 2016, “a” was deleted preceding “savings and loan association” in the first sentence.

JUDICIAL DECISIONS Legislative intent. - See Bank S. v. Grand Lodge of Free & Accepted Masons, 174 Ga. App. 777, 331 S.E.2d 629, 1985 Ga. App. LEXIS 1953 (1985). Applicability to banks. - In an action by children against a bank for accepting custodial certificates of deposit as collateral for their custodian’s personal loan, the provision of O.C.G.A. § 7-1-790 creating a presumption that a fiduciary was acting in a lawful manner consistent

with the fiduciary’s duties applied to shield the bank from liability. Grogan v. Lanier Bank & Trust Co., 219 Ga. App. 313, 464 S.E.2d 892, 1995 Ga. App. LEXIS 1037 (1995), cert. denied, No. S96C0553, 1996 Ga. LEXIS 415 (Ga. Mar. 8, 1996). Bank challenge of trustee’s withdrawals. - Bank is under no duty to challenge a trustee’s withdrawal of trust funds merely because the amount withdrawn is large or for cash. Bank S. v.

Grand Lodge of Free & Accepted Masons, 174 Ga. App. 777, 331 S.E.2d 629, 1985 Ga. App. LEXIS 1953 (1985). Summary judgment in suit for mishandling trust. - Although there was a genuine issue of fact whether a savings and loan association had knowledge of the court order requiring court permission before encroaching upon the corpus of a trust, it was not a material fact because, even if the association had such knowledge, it was permitted by

O.C.G.A. § 7-1-790 to pay out the funds on the order of the trustee under the presumption that the trustee was acting in compliance with duties as a fiduciary; therefore, summary judgment was properly granted in favor of the association in the beneficiaries’ suit for mishandling of the trust. Chelena v. Georgia Fed. Sav. & Loan Ass’n, 256 Ga. 336, 349 S.E.2d 180, 1986 Ga. LEXIS 868 (1986).

RESEARCH REFERENCES ALR. Liability of bank where funds deposited in account of trustee, agent, or other

fiduciary, as such, are transferred to his personal account and misappropriated, 145 A.L.R. 445.

Notes of Decisions

Cited in 4 cases, 1985–1995 · leading case: Nat. Bank of Georgia v. Weiner, 348 S.E.2d 492 (Ga. Ct. App. 1986).

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Nat. Bank of Georgia v. Weiner, 348 S.E.2d 492 (Ga. Ct. App. 1986). · cites it 4× “" See also Bank South, supra, with respect to the fairly correlative OCGA § 7-1-790. Thirdly, the bank as a collecting bank was authorized to charge back, or obtain refund from its customer, for the amount of any credit given for an item which is dishonored.”

Bank South v. Grand Lodge of Free & Accepted Masons, 331 S.E.2d 629 (Ga. Ct. App. 1985). · cites it 2× “” OCGA § 7-1-790. The official comment to former Code Ann.”

Chelena v. Georgia Fed. Sav. & Loan Ass'n, 349 S.E.2d 180 (Ga. 1986). · cites it 2× “This case is controlled by OCGA § 7-1-790 governing deposits by fiduciaries in building and loan associations and savings and loan associations.”

Grogan v. Lanier Bank & Trust Co., 464 S.E.2d 892 (Ga. Ct. App. 1995). · cites it 8× “Likewise, the children argue the court erred in ruling that the Bank was immune from liability under Chelena, supra, because OCGA § 7-1-790, upon which the Chelena case is predicated, applies to savings and loan associations, not banks.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.