Impact Of Adverse Claim Statutes Affecting Bank Deposit Accounts
LexisNexis (July 5, 2018, 2:16 PM EDT) -- Adverse claim statutes, designed to protect banks from the perilous common-law position of vulnerability to suit by either the depositor or the adverse claimant, have been enacted in at least 36 states as well as the District of Columbia. Some bank attorneys are not aware of these important statutes. Here's a primer.
How the statutes work. As a general rule, adverse claim statutes protect a bank from liability when the bank continues to pay out funds at the depositor's direction, notwithstanding the bank's knowledge of an...