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2000 SESSION

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HB 573 Credit unions; fiduciary accounts.

Introduced by: L. Preston Bryant, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED: (all summaries)

Credit unions; fiduciary accounts. Provides credit unions with the same protections and authorizations regarding the issuance of shares and maintenance of share accounts in the name of persons or entities for membership in the credit union as fiduciaries as other financial institutions enjoy. The credit union is held harmless for the payment of funds from or the delivery of funds into such account as long as the fiduciary has signed for such payment or delivery. The credit union need not inquire into whether the fiduciary is breaching his obligation when the fiduciary purchases shares in his own name with funds from the fiduciary account or with funds from other accounts of his principal; however, the credit union must not pay the amount of such shares if it has actual knowledge that the fiduciary is breaching his fiduciary obligation or that issuing the shares or paying the withdrawal constitutes bad faith.


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