O.C.G.A. § 7-1-820 — Financial institution protection - Discharge upon proper payment; notice not to permit withdrawals

Payment made pursuant to Code Section 7-1-816, 7-1-817, 7-1-818, or 7-1-819 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. The protection here given does not extend to payments made after a financial institution has received written notice from any party able to request present payment to the effect that withdrawals in accordance with the terms of the account should not be permitted.

JUDICIAL DECISIONS

Payment on proper request established.

- In an action filed by a bank customer's son after the bank paid the proceeds of a certificate of deposit (CD) which the customer purchased in the customer's name and the son's name to the customer, alleging violations of the son's rights in the CD, the appellate court held that the bank was protected from liability by O.C.G.A. §§ 7-1-816 and7-1-820 because the customer's telephone request for redemption was made in accordance with the conditions of the customer's account and the bank's regulations, and the appellate court affirmed the trial court's judgment granting summary judgment for the bank. South v. Bank of Am., 260 Ga. App. 91, 579 S.E.2d 80 (2003).

Cited in Callahan v. C. & S. Bank, 150 Ga. App. 62, 256 S.E.2d 666 (1979); Williams v. Citizens Bank, 182 Ga. App. 461, 356 S.E.2d 80 (1987); Echols v. Trust Co. Bank, 198 Ga. App. 340, 401 S.E.2d 565 (1991); South v. Bank of Am., 250 Ga. App. 747, 551 S.E.2d 55 (2001).

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TITLE 7 BANKING AND FINANCE

Section 1. Financial Institutions, 7-1-1 through 7-1-1021.

ARTICLE 8 MULTIPLE-PARTY ACCOUNTS

7-1-820. Financial institution protection - Discharge upon proper payment; notice not to permit withdrawals.

JUDICIAL DECISIONS

Payment on proper request established.