S.B. No. 714

	AN ACT
	relating to certain account disclosures provided by a financial
	institution to a customer.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 113.052, Estates Code, is amended to
	read as follows:
	Sec. 113.052.  FORM.  A financial institution may use the
	following form to establish the type of account selected by a party:
	UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION
	FORM NOTICE:  The type of account you select may determine how
	property passes on your death.  Your will may not control the
	disposition of funds held in some of the following accounts.  You
	may choose to designate one or more convenience signers on an
	account, even if the account is not a convenience account.  A
	designated convenience signer may make transactions on your behalf
	during your lifetime, but does not own the account during your
	lifetime.  The designated convenience signer owns the account on
	your death only if the convenience signer is also designated as a
	P.O.D. payee or trust account beneficiary.
	Select one of the following accounts by placing your initials
	next to the account selected:
	___ (1)  SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON
	DEATH) DESIGNATION.  The party to the account owns the account.  On
	the death of the party, ownership of the account passes as a part of
	the party's estate under the party's will or by intestacy.
	Enter the name of the party:
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	___ (2)  SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON
	DEATH) DESIGNATION.  The party to the account owns the account.  On
	the death of the party, ownership of the account passes to the
	P.O.D. beneficiaries of the account.  The account is not a part of
	the party's estate.
	Enter the name of the party:
	________________________________________________________________
	Enter the name or names of the P.O.D. beneficiaries:
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	___ (3)  MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF
	SURVIVORSHIP.  The parties to the account own the account in
	proportion to the parties' net contributions to the account.  The
	financial institution may pay any sum in the account to a party at
	any time.  On the death of a party, the party's ownership of the
	account passes as a part of the party's estate under the party's
	will or by intestacy.
	Enter the names of the parties:
	________________________________________________________________
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	___ (4)  MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP.
	The parties to the account own the account in proportion to the
	parties' net contributions to the account.  The financial
	institution may pay any sum in the account to a party at any time.
	On the death of a party, the party's ownership of the account passes
	to the surviving parties.
	Enter the names of the parties:
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	___ (5)  MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP
	AND P.O.D. (PAYABLE ON DEATH) DESIGNATION.  The parties to the
	account own the account in proportion to the parties' net
	contributions to the account.  The financial institution may pay
	any sum in the account to a party at any time.  On the death of the
	last surviving party, the ownership of the account passes to the
	P.O.D. beneficiaries.
	Enter the names of the parties:
	________________________________________________________________
	________________________________________________________________
	Enter the name or names of the P.O.D. beneficiaries:
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	___ (6)  CONVENIENCE ACCOUNT.  The parties to the account own
	the account.  One or more convenience signers to the account may
	make account transactions for a party.  A convenience signer does
	not own the account.  On the death of the last surviving party,
	ownership of the account passes as a part of the last surviving
	party's estate under the last surviving party's will or by
	intestacy.  The financial institution may pay funds in the account
	to a convenience signer before the financial institution receives
	notice of the death of the last surviving party.  The payment to a
	convenience signer does not affect the parties' ownership of the
	account.
	Enter the names of the parties:
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s):
	________________________________________________________________
	________________________________________________________________
	___ (7)  TRUST ACCOUNT.  The parties named as trustees to the
	account own the account in proportion to the parties' net
	contributions to the account.  A trustee may withdraw funds from the
	account.  A beneficiary may not withdraw funds from the account
	before all trustees are deceased.  On the death of the last
	surviving trustee, the ownership of the account passes to the
	beneficiary.  The trust account is not a part of a trustee's estate
	and does not pass under the trustee's will or by intestacy, unless
	the trustee survives all of the beneficiaries and all other
	trustees.
	Enter the name or names of the trustees:
	________________________________________________________________
	________________________________________________________________
	Enter the name or names of the beneficiaries:
	________________________________________________________________
	________________________________________________________________
	Enter the name(s) of the convenience signer(s), if you want
	one or more convenience signers on this account:
	________________________________________________________________
	________________________________________________________________
	ACKNOWLEDGMENT:  I acknowledge that I have read each
	paragraph of this form and have received disclosure of the
	ownership rights to the accounts listed above.  I have placed my
	initials next to the type of account I want.
	_______________________
	Signature
	SECTION 2.  Section 113.053, Estates Code, is amended to
	read as follows:
	Sec. 113.053.  REQUIRED DISCLOSURE; USE OF FORM.
	(a)  Except as provided by Subsection (d), a [A] financial
	institution shall disclose the information provided in this
	subchapter to a customer before [at the time] the customer selects
	or modifies an account.
	(a-1)  A financial institution is considered to have
	disclosed the information provided in this subchapter if:
	(1)  the financial institution uses the form provided
	by Section 113.052; and
	(2)  the customer signs the acknowledgment provided at
	the end [places the customer's initials to the right of each
	paragraph] of the form.
	(b)  If a financial institution varies the format of the form
	provided by Section 113.052, the financial institution shall
	disclose [may make disclosures in the account agreement or in any
	other form that discloses] the information provided by this
	subchapter[.  Disclosures under this subsection must:
	[(1)  be given] separately from other account
	information except that the financial institution may disclose that
	information as part of other account documentation if the
	disclosures are the first items of the documentation[;
	[(2)     be provided before account selection or
	modification;
	[(3)  be printed in 14-point boldfaced type; and
	[(4)     if the discussions that precede the account
	opening or modification are conducted primarily in a language other
	than English, be in that language].
	(c)  The financial institution shall notify the customer of
	the type of account the customer selected.  This requirement is
	satisfied by providing the customer with a copy of the account
	opening or modification documentation, as appropriate, in paper or
	electronic format.
	(d)  If a type of multiple-party account is not available
	from a financial institution, the financial institution is not
	required to make a disclosure about that type of account.
	(e)  This section does not apply to:
	(1)  a credit union; or
	(2)  an account that is opened or modified by a customer
	who:
	(A)  is a legal entity, including a governmental
	entity; or
	(B)  is acting as a legal representative for
	another person.
	SECTION 3.  This Act applies only to a financial institution
	account opened or modified on or after the effective date of this
	Act. A financial institution account opened or modified before the
	effective date of this Act is governed by the law in effect on the
	date the account was opened or modified, and the former law is
	continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2017.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 714 passed the Senate on
	April 26, 2017, by the following vote:  Yeas 30, Nays 0, one
	present not voting.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 714 passed the House on
	May 19, 2017, by the following vote:  Yeas 144, Nays 0, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor