Texas Finance Code - Section 34.305. Deposit Account Of Minor
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Texas Lawyer > Finance Code > Texas Finance Code - Section 34.305. Deposit Account Of Minor
§ 34.305. DEPOSIT ACCOUNT OF MINOR. (a) Except as
otherwise provided by this section, a bank lawfully doing business
in this state may enter into a deposit account with a minor as the
sole and absolute owner of the account and may pay checks and
withdrawals and otherwise act with respect to the account on the
order of the minor. A payment or delivery of rights to a minor who
holds a deposit account evidenced by an acquittance signed by the
minor discharges the bank to the extent of the payment made or
rights delivered.
(b) The disabilities of minority of a minor who is the sole
and absolute owner of the deposit account are removed for the
limited purpose of enabling:
(1) the minor to enter into a depository contract with
the bank; and
(2) the bank to enforce the contract against the
minor, including collection of an overdraft or account fee and
submission of account history to an account reporting agency or
credit reporting bureau.
(c) A parent or legal guardian of a minor may deny the
minor's authority to control, transfer, draft on, or make a
withdrawal from the minor's deposit account by notifying the bank
in writing. On receipt of the notice by the bank, the minor may not
control, transfer, draft on, or make a withdrawal from the account
during minority except with the joinder of a parent or legal
guardian of the minor.
(d) If a minor with a deposit account dies, the acquittance
of the minor's parent or legal guardian discharges the liability of
the bank to the extent of the acquittance, except that the aggregate
discharges under this subsection may not exceed $3,000.
(e) Subsection (a) does not authorize a loan to the minor by
the bank, whether on pledge of the minor's savings account or
otherwise, or bind the minor to repay a loan made except as provided
by Subsection (b) or other law or unless the depository institution
has obtained the express consent and joinder of a parent or legal
guardian of the minor. This subsection does not apply to an
inadvertent extension of credit because of an overdraft from
insufficient funds, a returned check or deposit, or another
shortage in a depository account resulting from normal banking
operations.
Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.
Section: 34.202 34.203 34.204 34.301 34.302 34.303 34.304 34.305 34.306 34.307 35.001 35.002 35.003 35.004 35.005
Last modified: August 10, 2007
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