Georgia House of Representatives - 1995/1996 Sessions

HB 529 - Deceased intestate depositors; release of funds

Page Numbers - 1/ 2/ 3

Code Sections - 7-1-239

1. Williams  83rd         2. Watson  139th           3. Ray  128th
4. Bargeron  120th        5. Benefield  96th         6. Lee  94th


House Comm: B&B        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
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              2/1/95   Read 1st Time                                                                
              2/2/95   Read 2nd Time                                                                
              2/21/95  Favorably Reported                                                           
              3/6/95   Recommitted                                                                  
              3/6/95   Read 3rd Time                                                                
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Code Sections amended: 7-1-239                                                                      


HB 529                                            LC 15 3995






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Part 12 of Article 1 of Chapter 1 of Title 7 of the
  1- 2  Official Code of Georgia Annotated, relating to deposits of
  1- 3  deceased depositors, so as to increase the amount of funds a
  1- 4  financial institution may release to certain persons when a
  1- 5  depositor dies intestate; to provide for an effective date
  1- 6  and for applicability; to repeal conflicting laws; and for
  1- 7  other purposes.

  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 9  Part 12 of Article 1 of Chapter 1 of Title 7 of the Official
  1-10  Code of Georgia Annotated, relating to deposits of deceased
  1-11  depositors, is amended by striking Code Section 7-1-239,
  1-12  relating to the payment of large deposits of deceased
  1-13  intestate depositors and deposits of sums held for deceased
  1-14  intestate residents, and inserting in lieu thereof a new
  1-15  Code Section 7-1-239 to read as follows:

  1-16    "7-1-239. (Index)

  1-17    (a) Except as provided in subsection (b) of this Code
  1-18    section and in Article 8 of this chapter, whenever any
  1-19    person dies intestate having a deposit of not more than
  1-20    $2,500.00 $10,000.00 in a financial institution, such
  1-21    financial institution shall be authorized to pay the
  1-22    proceeds of such deposit directly to the following
  1-23    persons:

  1-24      (1) To the surviving spouse;

  1-25      (2) If no surviving spouse, to the children pro rata;

  1-26      (3) If no children or surviving spouse, to the father
  1-27      and mother pro rata; or

  1-28      (4) If none of the above, then to the brothers and
  1-29      sisters of the decedent pro rata.

  1-30    (b) Except as provided in Article 8 of this chapter, if no
  1-31    application for the deposit is made by any person named in


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                                                  LC 15 3995

  2- 1    subsection (a) of this Code section within 90 days from
  2- 2    the death of the depositor, the financial institution
  2- 3    shall be authorized to apply not more than $2,500.00
  2- 4    $10,000.00 of the deposit of such deceased depositor in
  2- 5    payment of the funeral expenses and expenses of the last
  2- 6    illness of such deceased depositor upon the receipt of
  2- 7    itemized statements of such expenses and the affidavit of
  2- 8    the providers of such services that the itemized
  2- 9    statements are true and correct and have not been paid.
  2-10    The financial institution shall pay such expenses in the
  2-11    order received after the death of the depositor.

  2-12    (c) Payments pursuant to subsections (a) and (b) of this
  2-13    Code section shall operate as a complete acquittal and
  2-14    discharge to the financial institution of liability from
  2-15    any suit, claim, or demand of whatever nature by any heir,
  2-16    distributee, creditor of the decedent, or any other
  2-17    person.  Such payment is authorized to be made as provided
  2-18    in this Code section without the necessity of
  2-19    administration of the estate of the decedent or without
  2-20    the necessity of obtaining an order that no administration
  2-21    is necessary.

  2-22    (d) In any case in which a deceased depositor has more
  2-23    than $2,500.00 $10,000.00 on deposit in a financial
  2-24    institution, such financial institution shall be
  2-25    authorized to pay any amount up to $2,500.00 $10,000.00 to
  2-26    any of the persons authorized by this Code section to
  2-27    receive said deposit.  The payment shall only act as a
  2-28    full and final acquittance of liability up to the amount
  2-29    paid by the financial institution and shall not act as a
  2-30    full and final acquittance to the financial institution of
  2-31    all liability.

  2-32    (e) Notwithstanding any other provisions of law to the
  2-33    contrary, when any person dies intestate as a resident of
  2-34    this state and any person is left in possession of moneys
  2-35    belonging to the decedent, which moneys do not exceed
  2-36    $2,500.00 $10,000.00, such person shall deposit such
  2-37    moneys into a savings account in the name of the decedent
  2-38    in a financial institution located in the area of the
  2-39    decedent's residence.  Such account shall be managed in
  2-40    accordance with the signature contract in effect at the
  2-41    financial institution at the time the account is opened.
  2-42    Any financial institution receiving such deposits is
  2-43    authorized to pay the proceeds in accordance with
  2-44    subsections (a), (b), (c), and (d) of this Code section.



                                 -2- (Index)

                                                  LC 15 3995

  3- 1    (f) As used in this Code section, the term 'financial
  3- 2    institution' includes any federally chartered financial
  3- 3    institution."

                         SECTION 2.

  3- 4  This Act shall become effective upon its approval by the
  3- 5  Governor or upon its becoming law without such approval.
  3- 6  This Act shall apply with respect to deposits and funds of
  3- 7  persons dying on or after that effective date.

                         SECTION 3.

  3- 8  All laws and parts of laws in conflict with this Act are
  3- 9  repealed.



































                                 -3- (Index)