BANK DEPOSITS TRUST DEPOSITS ALTERNATE DEPOSITS JOINT DEPOSITS A full statement of the general principles of law governing text of the statutes regulating these de- BY JOHN EDSON BRADY Published by the BANKING LAW JOURNAL CO. 27 Thames Street, New York PREFACE. In recent years bank deposits in the trust, joint and alternate forms have become exceedingly popular, especially among depositors in banking institutions exercising savings bank functions. Many different motives actuate the depositors in opening these accounts. The frequency with which disputes over accounts in the forms mentioned are brought into the courts bears testimony to the fact that in many cases the deposit fails to carry out the intention of the depositor. And instances are not wanting wherein these accounts have proved a source of trouble, and even of pecuniary loss, to the banks which accepted them. These facts were called to the attention of the author by Mr. Alfred F. White, President of the Banking Law Journal Company, and, acting upon his suggestion that there was a demand for a book setting forth the law with respect to trust, joint and alternate deposits, this work was undertaken. The author wishes to acknowledge his obligation to Mr. Thomas B. Paton, General Counsel of the American Bankers' Association, who collected and caused to be published in the Banking Law Journal in the years 1900 and 1901 a number of decisions, which have been freely used herein. With these observations this book is submitted to the legal and banking professions in the belief that they will find it useful, and in the hope that they will treat such imperfections as it may contain with leniency. JOHN EDSON BRADY. 44 Pine Street, New York City, September 7, 1911. EXPLANATORY. To the members of the bar no explanation is necessary. But, as this book is intended for the guidance of the layman and will come to the hands of many outside of the legal profession, a word by way of elucidation is perhaps pardonable. Those portions of the book designated Part I and Part II are intended to be a general outline of the law governing the creation and disposition of trust accounts and accounts in two names. In the foot notes are cited the decisions which support the propositions of law set forth. A digest of each of these decisions is to be found in Appendix A, wherein it has been endeavored to collect all cases, which have been decided down to the present time, affecting the classes of bank deposits of which this book treats. The digests are grouped according to states and are arranged in alphabetical order. The index covers Part I, Part II and Appendix A. The table of cases, which follows Appendix B indicates on what pages each case is referred to throughout the book. In Appendix B are gathered the statutes relating to trust, joint and alternate deposits, which the legislatures of twenty seven states have enacted, including all statutes which have been enacted to date. J. E. B. TABLE OF CONTENTS. § 2. Mere deposit by one person in trust for another does not §3. Intent of depositor governs. § 4. Effect of death of depositor upon tentative trust.. § 5. Declarations of depositor showing an intent to create a § 6. Retention of pass-book.by depositor.. 7. Effect of failure to notify beneficiary of trust. § 8. Limit to amount of individual deposit as explanatory of § 9. Withdrawal of interest by depositor. $10. Withdrawal of principal. . . $11. Trust to become effective upon depositor's death. $12. Trust in favor of fictitious person. $13. Trust in favor of creditor. . . . . . §14. Effect of failure to refer to trust fund in will. $15. Effect of death of beneficiary before depositor. $16. Liability of bank in paying trust deposit... §17. Beneficiary cannot compel bank to pay during life of the |