When a depositor dies a claim would be received by the banker either from the

When a depositor dies a claim would be received by

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when he receives a claim. When a depositor dies, a claim would be received by the bankereither from the nominee or legal heirs of the depositor.Banks obtain nominations from the depositors in a prescribed manner and should register thenomination in their records. A proper acknowledgment is to be given to the depositor. Oncethe banker gets a claim from the nominee of the depositor, the banker should verify andsatisfy himself(i) whether the claim is received from the person whose name is recorded as nominee inbank’s records, and(ii) the deposit amount may be paid to the nominee after proper verification of the necessarydocuments like claim form, the death certificate of the depositor, proper identity of thenominee(iii) the banker should get an acknowledgement from the nominee . The nominee shouldacknowledge the receipt of the amount of the deposit, including interest if any, duly signed bythe nominee on a revenue stamp. The acknowledgement should clearly state that the nomineehas received the deposit amount, as nominee of the depositor. Obtaining theacknowledgement and stamped receipt (as mentioned above) serves as a valid discharge ofthe bank.As regards safe deposit lockers and custody accounts, the claims can be settled by the bankafter proper verification of bank’s records and other relevant documents like claim forms,death certificate of the bank’s customer and identity of the nominee.In case no nomination is available, then banks should follow their legal department’s adviceand bank’s policy and procedures, to settle the claims. Important documents to be obtainedare: claim forms, death certificate of the depositor, succession certificate if applicable, properidentification of legal heirs, proper acknowledgment of repayment of deposit/s from the legalheirs.Topic 4: GARNISHEE ORDERSThe obligation of a banker to honour his customer’s request for any transaction isextinguished on receipt of an order of the Court, known as the Garnishee order, issued underOrder 21, Rule 46 of the code of Civil Procedure, 1908. If a debtor fails to pay the debt owedby to his creditor, the latter may apply to the Court for the issue of a Garnishee Order on thebanker of his debtor. Such order attaches the debts not secured by a negotiable instrument, byprohibiting the creditor the creditor from recovering the debt and the debtor from the makingpayment thereof. The account of the customer with the banker, thus, becomes suspended and
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the banker is under an obligation not to make any payment from the account concerned afterthe receipt of the Garnishee Order. The creditor at whose request the order is issued is calledthe judgement- creditor, the debtor whose money is frozen is called judgement- debtor andthe banker who is the debtor of the judgement debtor is called the Garnishee.
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