If an association or federal association has received no written notice and is not on actual notice that the savings account holder has been adjudicated incompetent, it may pay or deliver funds to the account holder in accordance with the provisions of the savings account contract, and the receipt or acquittance of the holder shall be a sufficient release of that association or federal association for the payment or delivery.
Savings OperationsAccounts of Incompetents
Section § 6900
This law says that if a bank or federal bank has not been notified in writing and does not know that a savings account holder has been declared legally incompetent, the bank can continue to give money to the account holder according to the account terms. The bank won't get in trouble for doing so as long as they didn't know about the legal incompetence.
savings account account holder adjudicated incompetent
