Pennsylvania Act 1967-341 — PROVIDE PROTECTION TO FEDERAL CREDIT UNIONS

Act text

PROVIDE PROTECTION TO FEDERAL CREDIT UNIONS
                 Act of Dec. 14, 1967, P.L. 732, No. 341              Cl. 15
                                  AN ACT

     To provide for protection of Federal credit unions paying
        dividends, earnings or withdrawal value of shares held in the
        name of a minor, or in trust or in the names of two or more
        persons as joint tenants with right of survivorship.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Joint Accounts.--Whenever shares of Federal
     credit union existing under the Act of Congress approved June
     26, 1934, c. 750, 48 Stat. 1216, its amendments and supplements,
     known as the Federal Credit Union Act, shall be issued in the
     names of two or more persons as joint tenants with right of
     survivorship and one or more of such persons is a minor, and
     such shares shall have been subscribed for under an arrangement
     with the Federal credit union whereby the dividends or earnings
     thereon, or the withdrawal value thereof, may be paid upon
     receipt, acquittance or other action, as the case may be, of
     either or any of such persons, the Federal credit union may pay
     such dividends or earnings or withdrawal value upon such
     receipt, acquittance, or other action, as the case may be, of
     either or any of such minors who shall be not less than sixteen
     years of age, pursuant to the arrangement provided for in this
     section, notwithstanding the fact that one or more of the other
     persons may be dead and the Federal credit union has notice
     thereof; and such receipt, acquittance or other action shall be
     binding upon such minor with like effect as if such minor were
     of full age and shall be a valid release to the Federal credit
     union.
        Section 2.  Shares Held in the Name of a Minor.--Any such
     Federal credit union, having issued shares standing on its books
     in the name of any minor not less than twelve years of age, may
     pay the dividends, or earnings thereon, as well as the
     withdrawal value of such shares, to such minor, without the
     assent of his parent or guardian. The receipt, acquittance, or
     other action required by the Federal credit union to be taken by
     the minor shall be binding upon such minor with like effect as
     if such minor were of full age and shall be a valid release to
     the Federal credit union. The parent or guardian of such minor
     shall not, in his capacity as parent or guardian, have the power
     to attach or in any manner transfer any shares issued to or
     standing in the name of such minor.
        Section 3.  Shares Held as Trustee.--Whenever shares of such
     a Federal credit union shall be issued to any person, describing
     himself, in subscribing for such shares, as trustee for any
     person or persons, and no other notice of the existence and
     terms of a valid trust than such description shall have been
     given to the Federal credit union, the dividends or earnings on
     such shares, as well as the withdrawal value of such shares,
     shall, in the event of the death of the person so described as
     trustee, be paid to the person or persons for whose benefit the
     shares were stated to have been subscribed if, at the time of
     payment, such beneficiary is not less than sixteen years of age.
     Payment may be made to any such beneficiary who is not less than
     sixteen years of age under the same conditions as if such shares
     had been originally subscribed for by him. If there are two or
     more beneficiaries named on any such shares, the Federal credit
     union shall, in the absence of written notice to the contrary,
     make payment to such of the beneficiaries as may survive the
     trustee, in equal portions. The receipt or acquittance of any
     such beneficiary or beneficiaries for payments, made in
     accordance with this section, shall be a full, complete and
     valid release of the Federal credit union from any further
     liability for the amounts so paid.