Adverse Claim to Bank Deposits

Adverse Claim to Bank Deposit. Notice to any bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause the bank to recognize the adverse claimant unless the adverse claimant shall also either procure a restraining order, injunction, or other appropriate process against the bank from a court of competent jurisdiction in a cause therein instituted by him wherein the person to whose credit the deposit stands is made a party and served with summons or shall execute to the bank in form and with sureties acceptable to it, a bond, indemnifying the bank from any and all liability, loss, damage, costs and expenses, for and on account of the payment of such adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of the bank; provided, that this section shall not apply in any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant, and the facts constituting the relationship are also the facts showing reasonable cause for relief on the part of the claimant that the fiduciary is about to misappropriate the deposit, are made to appear by the affidavit of such claimant. Source: PL 3-104, § 608.