72-6-226. Discharge. (1) Payment made pursuant to this part in accordance with the terms of an account, or honoring a request for alteration of rights made in accordance with 72-6-213, discharges the financial institution from all claims for amounts so paid or alterations so made, whether or not the payment or alteration is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors. Payment or alteration may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment or alteration is requested, received, or made.
(2) Protection under this section does not extend to payments or alterations made after a financial institution has received written notice from a party, or from the personal representative, surviving spouse, or heir or devisee of a deceased party, to the effect that payments in accordance with the terms of the account or alteration of rights, including payments or alterations relating to an account having an agency designation, should not be permitted and after the financial institution has had a reasonable opportunity to act on the notice when the payment is made or the alteration is requested. Unless the notice is withdrawn by the person giving it, the successor of any deceased party shall concur in a request for payment or alteration if the financial institution is to be protected under this section. Unless a financial institution has been served with process in an action or proceeding, no other notice or other information shown to have been available to the financial institution affects its right to protection under this section.
(3) A financial institution that receives written notice pursuant to this section or otherwise has reason to believe that a dispute exists as to the rights of the parties may refuse, without liability, to make payments in accordance with the terms of the account or to honor a request for alterations.
(4) Protection of a financial institution under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of sums on deposit in accounts or payments made from accounts or regarding whether a request for an alteration of rights to an account was improper between the parties.