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Section 93-20-416 – Bond; oath; waiver; financial institutions; alternative asset-protection arrangement

May 13, 2021 | Family Law, Mississippi

(1) Except as otherwise provided in subsection (3), the court shall require a conservator to furnish a bond with a surety the court specifies, or require an alternative asset-protection arrangement, conditioned on faithful discharge of all duties of the conservator. The court may waive or partially waive the requirement if:

(a) The respondent is a minor and the minor’s parent has waived the requirement in a valid holographic will or another instrument to take effect at the parent’s death that is signed by the parent and attested by two (2) or more credible witnesses, not including the person nominated as conservator; or
(b) Part of the assets of the ward’s estate are deposited in one or more banking corporations, building and loan associations or savings and loan associations (“financial institutions”) in this state if the deposits are fully insured by the Federal Deposit Insurance Corporation (FDIC) and will remain on deposit in that institution until further order of the court, a certified copy or MEC-filed copy of the order for deposit having been furnished to the depository or depositories and its receipt acknowledged in a form that substantially complies with subsection (7); or
(c) The court finds that a bond or other asset-protection arrangement is not necessary to protect the interests of the individual subject to conservatorship. Except as otherwise provided in subsection (3), the court may not waive the requirement of bond or other asset-protection arrangement if the conservator is in the business of serving as a conservator and is being paid for the conservator’s service.
(2) Unless the court directs otherwise, the bond required under this section must be in the amount of the aggregate capital value of the conservatorship estate, plus one (1) year’s estimated income, less the value of property deposited under an arrangement requiring a court order for its removal and real property the conservator lacks power to sell or convey without specific court authorization. The court, in place of surety on a bond, may accept collateral for the performance of the bond, including a pledge of securities or a mortgage of real property.
(3) A banking institution insured by the FDIC qualified to do trust business in this state is not required to give a bond under this section.
(4) Every bond must be filed in the records of the chancery court and may be put in suit for any breach of the condition, whether the appointment be legal or not; and the condition shall be as follows:

“The condition of the above obligation is that if the above bound, as conservator of _______________ in ____________ County shall faithfully discharge all the duties required of him by law, then the above obligation shall cease.”

The conservator must also take and subscribe on oath, at or before the conservator’s appointment, faithfully to discharge the duties of conservator of the ward according to law.

(5) A financial institution that substantially complies with the provisions of this article when acting as a depository of conservatorship funds is not liable to any person for so acting except for willful default, gross negligence or malfeasance.
(6) A financial institution that acts as a depository of the funds may charge a fee for servicing the account.
(7) ACKNOWLEDGMENT OF RECEIPT OF ORDER FOR DEPOSIT AND RECEIPT OF CASH FUNDS

The Chancery Court of ______________ County, Mississippi, having rendered its order in the above-entitled and numbered cause on the ____ day of ____________, _____________, designating a banking institution insured by the Federal Deposit Insurance Corporation as the depository of the funds of _________________________________________, by and through _______________________________________, as conservator, and the conservator, having elected to use ______________________________________________ (Name of Financial Institution) as the aforesaid depository, I, acting pursuant to my authority in and for said bank, do hereby acknowledge that I have received a copy of the order of the chancery court, duly certified as true and correct by the chancery clerk of _____________________ County, Mississippi, or a MEC-filed copy of the order of the chancery court. I further note that said order provides that all funds so deposited to the account shall remain on deposit until further order of the court.

Receipt is also hereby acknowledged of the funds in the amount of $__________________ in this matter.

________________________________ (Name of Financial Institution) hereby acknowledges that the funds, described above, shall not be disbursed without further order of this court.

This the day of ____________, _________________.

STATE OF MISSISSIPPI

COUNTY OF _________________________

Personally came and appeared before me, the undersigned authority in and for the jurisdiction aforesaid, the within named _____________________________ (Name of Bank Officer), who is _____________________________ (Job Title) of _____________________________ (Name of Financial Institution) and who acknowledged to me that he/she signed and delivered the above and foregoing Acknowledgment of Receipt of Order for Deposit and Receipt of Cash Funds as the act and deed of said bank, he/she being first duly authorized so to do.

Given under my hand and official seal, this the _______________ day of ____________, ____________________.

___________________________ ______________________

Notary Public My commission expires

Miss. Code § 93-20-416

Added by Laws, 2019, ch. 463, SB 2828,§ 1, eff. 1/1/2020.