Oklahoma § 6-2025 - Share or deposit account payable on death – Application

§ 6-2025. Share or deposit account payable on death – Application

A. Share and deposit account proceeds that are payable to a

beneficiary upon the death of the account owner shall be offered

pursuant to the following provisions:

1. When shares are owned or a deposit has been made or shall

hereafter be made in any credit union using the terms "Payable on

Death" or "P.O.D.", such deposits shall be payable on the death of

the account owner to one or more designated P.O.D. beneficiaries, or

to an individual or individuals named beneficiary if living and if

not living, to the estate of the deceased account holder,

notwithstanding any provision to the contrary contained in Sections

41 through 57 of Title 84 of the Oklahoma Statutes. Each designated

P.O.D. beneficiary shall be a trust, an individual, or a nonprofit

organization exempt from taxation pursuant to the provisions of the

Internal Revenue Code, 26 U.S.C., Section 501(c)(3);

2. A share or deposit account with a P.O.D. designation shall

constitute a contract between the account owner, (or owners, if more

than one) and the credit union that upon the death of the last

surviving owner of the account, and after payment of account

proceeds to any secured party with a valid security interest in the

account, the credit union will hold the funds for or pay them to the

named primary beneficiary or beneficiaries, if living. If a primary

beneficiary predeceases the account owner, the share of that primary

beneficiary shall be distributed pursuant to either paragraph 4, 5,

or 8 of this subsection, whichever is applicable;

3. Each P.O.D. beneficiary designated on a share or deposit

account shall be a primary beneficiary unless specifically

designated as a contingent beneficiary;

4. If there is only one primary P.O.D. beneficiary on a share

or deposit account and that beneficiary is an individual, the

account owner may designate one or more contingent beneficiaries for

whom the funds shall be held or to whom the funds shall be paid if

the primary beneficiary is not living when the last surviving owner

of the account dies. If there is more than one primary P.O.D.

beneficiary on a share or deposit account, contingent beneficiaries

shall not be allowed on that account;

5. If the sole primary P.O.D. beneficiary is not living and one

or more contingent beneficiaries have been designated as allowed by

paragraph 4 of this subsection, the funds shall be held for or paid

to the contingent beneficiaries who are alive at the time of the

account owner's death in equal shares, and shall not belong to the

estate of the deceased primary beneficiary or the estate of the

deceased account holder. If neither the primary beneficiary nor any

Oklahoma Statutes - Title 6. Banks and Trust Companies

contingent beneficiary is living at the time of the account owner's

death, the funds shall be paid to the account owner's estate;

6. In order to designate multiple primary P.O.D. beneficiaries

for a share or deposit account, the account should be styled as

follows: "(Name of Account Owner), payable on death (or P.O.D.) to

(Name of Beneficiary), (Name of Beneficiary), and (Name of

Beneficiary, in equal shares).";

7. If only one primary P.O.D. beneficiary has been designated

on a share or deposit account, the account owner may add the

following, or words of similar meaning, in the style of the account

or in the account agreement: "If the designated P.O.D. beneficiary

is deceased, then payable on the death of the account owner to (Name

of Beneficiary), (Name of Beneficiary), and (Name of Beneficiary),

as contingent beneficiaries, in equal shares.";

8. Adjustments may be made in the styling, depending upon the

number of owners of the account, to allow for survivorship rights,

and the number of beneficiaries. It is to be understood that each

beneficiary is entitled to a proportionate share of the account

proceeds only after the death of the last surviving account owner,

and after payment of account proceeds to any secured party with a

valid security interest in the account. All designated primary

P.O.D. beneficiaries shall have equal shares. All designated

contingent P.O.D. beneficiaries shall have equal shares as if the

sole primary beneficiary is deceased. In the event of the death of

a beneficiary prior to the death of the account owner, the share of

that beneficiary shall be divided among any surviving beneficiaries

or distributed to contingent beneficiaries pursuant to paragraphs 4

and 5 of this subsection, if applicable. If no beneficiaries are

alive at the time of the account owner's death, the funds shall be

held for, or paid to, the estate of the deceased account owner;

9. A credit union may require the owner of an account to

provide an address for any primary or contingent P.O.D. beneficiary.

If the P.O.D. account is an interest-bearing account and the funds

are not claimed by the P.O.D. beneficiary or beneficiaries within

sixty (60) days after the death of the last surviving account

holder, or after the credit union has notice of the death of the

last surviving account holder, whichever is later, the credit union

has the right to convert the account to a non-interest-bearing

account;

10. No change in the designation of a named beneficiary shall

be valid unless executed by the owner of the fund and in the form

and manner prescribed by the credit union; however, this section

shall be subject to the provisions of Section 178 of Title 15 of the

Oklahoma Statutes. Until the death of the member or owner, the

member or owner shall possess and may exercise all rights,

respecting the shares or deposits, including the power to vote,

pledge, withdraw, in whole or in part, make additions to, and to in

Oklahoma Statutes - Title 6. Banks and Trust Companies

any way deal with the shares or deposit. The receipt or acquittance

of the member or owner shall be a valid and sufficient release and

discharge of the credit union as to any payment to the member or

owner; and

11. The receipt or acquittance of the named beneficiary so

paid, or of the legal representative of the account owner's estate,

in the event the beneficiary predeceased the account owner, shall be

valid and sufficient release and discharge to the credit union for

any payment so made;

Subsequent to the effective date of this act, a credit union

shall provide a member creating a P.O.D. account with a written

notice that the distribution of the proceeds in the P.O.D. account

shall be consistent with the provisions of this section.

B. The provisions of this section shall apply to all forms of

deposit accounts including, but not limited to, share accounts,

transaction accounts, savings accounts, certificates of deposits,

negotiable order of withdrawal (N.O.W.) accounts, and M.M.D.A.

accounts.

Added by Laws 1981, c. 156, § 5, emerg. eff. May 8, 1981. Amended

by Laws 1994, c. 313, § 2, eff. Sept. 1, 1994; Laws 2007, c. 80, §

8, eff. Jan. 1, 2008; Laws 2025, c. 185, § 1, eff. Nov. 1, 2025.