21 HќќѠіђџȱ юћјђџ юџѐѕ 2014 yer,7 the terms contained on the ac- ȱȱȱĚȱ ȱ the apparent intent of the parties and created an unintended result. In that instance, the signature card stated that “any funds placed in or added to the account by any one of the parties is and shall be conclusively intended to be a gift … to the other signatory … to the extent of his or their pro rata interest.8 The court found the language on the signature card to unambiguously demonstrate a donative intent. In addition, funds held in a joint account would potentially be subject to the claims of the creditors of each party to the account. With respect to the second reason, ȱ¢ȱȱ ȱȱĴ- ¢ȱ ȱȱȱĴ¢ȱȱȱ to conduct banking transactions on behalf of the principal, while minimizing many of the risks associated with a joint account. A power of Ĵ¢ȱȱȃȱ ȱȱȱȱ ȱȱ¢ȱȱȱĴ¢ȱ in fact or agent to act in place of a principal, whether the term ‘power of Ĵ¢ȂȱȱǯȄ9 Assuming that the ȱȱĴ¢ȱȱ¢ȱȱ ȱęȱȱȱȱ for validity,10 the principal may grant ȱ¢ȱęȱ 11 to ȱĴ¢ȱȱȱ¢ȱȱȱȱ ęȱȱȱȱ ȱ ǰȱ or by reference to the descriptive language contained in the relevant sections.12 ȱ ȱęȱ ȱȱȱ banking transactions are very broad and cover substantially all of the actions that a principal could take with respect to their own accounts. Notwithstanding this broad statutory grant of authority, a principal may limit or modify the granted powers,13 or may terminate them at any time.14 Further, unlike a joint owner of an ǰȱȱĴ¢ȱȱȱȱ- quired by law to “use due care to act ȱȱęȱȱȱȱȱ ȱȱȱȱ ȱȱĴ¢15 and to “exercise all powers granted ȱȱ ȱȱĴ¢ȱȱȱ ę¢ȱ¢ǯȄ16 Accordingly, a ¢ȱȱ ȱȱĴ¢ȱ ȱȱĴ¢ȱȱȱȱ- This information is provided for general education purposes and is not intended to be legal advice. ȱȱȱȱȱęȱȱȱ to how this information applies to your institution’s circumstances or situation. 1 Ind. Code § 32-17-11-4. 2 § 32-17-11-17(a). 3 § 32-17-11-18(a). 4 § 32-17-11-20. 5 437 N.E.2d 92 (Ind. Ct.App. 1982) 6Id. at 96. 7 388 N.E.2d 611 (Ind. Ct.App. 1979). 8 Id. at 612. duct banking transactions on behalf of the principal and minimizes the ȱȱȱĴ¢ȱȱȱȱȱȱ joint owner of a deposit account. ABOUT COMPLIANCE CONNECTION In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance ȱěȱȱȱ Ȭęȱȱ ǯȱ ȱȱĴȱȱȱǰȱ ȱ Compliance Connection will refer the bank to a law ęǯȱ ȱȱȱȱȱ ȱȱ¢ȱLarry C. Tomlin, partner with Krieg DeVault LLP, Indianapolis, and IBA compliance consultant. Submit Compliance Connection questions to IBA’s ȱ ǯȱ ȱ ȱat avantil@indianabankers.org. Trusted. Partner. 9 Ind. Code § 30-5-2-7. 10 See § 30-5-4-1. 11 See §§ 30-5-5-2 through 19. 12 See § 30-5-5-1. 13 See § 30-5-5-1. 14 See § 30-5-10-1. 15 § 30-5-6-2. 16 § 30-5-6-3.
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