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Call Now: 904-383-7448A 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.
(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.)
The 2016 amendment, effective July 1, 2016, deleted "building and loan association or" preceding "a savings and loan association" in the first sentence of this Code section.
- Pursuant to Code Section 28-9-5, in 2016, "a" was deleted preceding "savings and loan association" in the first sentence.
- See Bank S. v. Grand Lodge of Free & Accepted Masons, 174 Ga. App. 777, 331 S.E.2d 629 (1985).
- 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).
- Bank is under no duty to challenge a trustee's withdrawal of trust funds merely because the amount withdrawn is large or for cash.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).
- 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).
- 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.
Total Results: 1
Court: Supreme Court of Georgia | Date Filed: 1986-10-22
Citation: 349 S.E.2d 180, 256 Ga. 336, 1986 Ga. LEXIS 868
Snippet: court approval. This case is controlled by OCGA § 7-1-790 governing deposits by fiduciaries in building and