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Can you summarize MORS 362.375?
Banks and Trust Companies > Adverse claim to deposit not effectual, when contract presented by third party, powers of bank or trust company.
Short Summary
This legal document pertains to banks and trust companies doing business in Missouri. It states that an adverse claim to a deposit standing on the books of a bank or trust company will not be recognized unless the adverse claimant either obtains a restraining order or injunction against the bank or trust company from a court of competent jurisdiction, or provides a bond indemnifying the bank or trust company from any liability, loss, damage, cost, and expenses related to the adverse claim or the dishonor of the check or other order. However, this requirement does not apply if the person to whose credit the deposit stands is a fiduciary for the adverse claimant and the claimant provides an affidavit demonstrating the facts of the fiduciary relationship and reasonable cause to believe that the fiduciary is about to misappropriate the deposit. Additionally, the document authorizes banks and trust companies to honor, dishonor, or place conditions on contracts, agency agreements, or other documents presented by third parties, unless there is a written agreement to honor such documents. This authorization does not apply to government documents, and it does not affect the requirements for insurance coverage that a creditor may impose on debtors.
Whom does it apply to?
Banks and trust companies doing business in Missouri
What does it govern?
Adverse claim to deposit, contract presented by third party
What are exemptions?
The law does not apply if the person to whose credit the deposit stands is a fiduciary for the adverse claimant and the claimant provides an affidavit showing the facts constituting the relationship and reasonable cause of belief that the fiduciary is about to misappropriate the deposit.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Missouri