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Liability for overdraft in a joint account

Answered by: 

Question: 
If one owner of a joint account issues a check that overdraws the account balance, can the bank recover the overdraft balance from the other joint owner?
Answer: 

In most states, the Uniform Commercial Code, the joint owner would not be liable for the overdraft, but most banks make the owners “jointly and severally” liable with a deposit contract provision.
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Avoiding Check Losses

First published on 04/14/2019

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