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#1409365 - 06/29/10 02:58 PM UGMA/NY
nemsi Offline
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Joined: Nov 2005
Posts: 383
While reviewing new accounts I noticed that a fairly large check deposited to a personal account had been issued to a UGMA-"Mickey Mouse Sr Custodian for Mickey Mouse Jr- UGMA/NY". The account we opened is a joint account belonging to Mickey Mouse Sr and Minnie Mouse. We are not in NY, we're in SC where Mickey Sr and Minnie live. The check was endorsed by the custodian and deposited into an account in his name. What responsibility does the bank have to the minor/owner?

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#1409378 - 06/29/10 03:19 PM Re: UGMA/NY nemsi
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
The bank could be looking at a suit for the amount of the check, based on the South Carolina UCC's section 36-3-307 (Notice of Breach of Fiduciary Duty). If Mickey Sr. gives the funds from the check to Mickey Jr. or uses them for Junior's benefit, you should escape any liability. But if Senior denies the funds to Junior and uses them for other purposes (perhaps a down-payment on Mickey Senior's membership in one of the fine South Carolina private golf clubs), Junior could take his dad to court to collect what's due him, and drag your bank into the fray.
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John S. Burnett
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#1409416 - 06/29/10 03:59 PM Re: UGMA/NY John Burnett
nemsi Offline
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Joined: Nov 2005
Posts: 383
Thanks John!

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