A business account opened by a partnership business is owned by the individuals who own and operate the unincorporated business. A partnership agreement is needed to open the account. If the partnership is using an assumed name, an Assumed Name Certificate must be filed with the county clerk’s office before the account is opened.
Convenience Account: A convenience account is an account that has signers on the account (for the convenience of the member) that are able to transact business on this account but do not own the funds. The funds in the account belong to the owner and funds that belong to the convenience signer cannot be deposited to this account. The authorization to transact business on the account stops at the date of death of the primary owner.
Corporate Account: A corporate account is owned by a corporation that is empowered to conduct business through its Articles of Incorporation filed with the Secretary of State. The Articles of Incorporation, tax identification number, and a corporate resolution designating the person(s) permitted to transact business on this account is needed to open the account. Documents needed to establish corporate accounts are subject to review by PECU’s attorney.
Individual/Single Party Account: An individual or single party account is an account owned by one member including any individual, corporation, partnership, trust or other organization qualified for credit union membership.
Joint With Right of Survivorship Account: An account that is joint tenancy with a right of survivorship is an account wherein a joint owner also owns the funds. All joint owners on the account have access to the funds whether the owner is alive or deceased. A joint owner on an account does not necessarily qualify as a member; a joint owner must have an account in his/her name to have voting right or use any of the services the credit union offers. The joint owner only has access to the account that they are on.
Minor Account: A minor account is an account that is established for person under the age of 18 years old. The minor must have a social security number and an adult must be on the account if the child does not have valid identification (that is acceptable to PECU) or if other services are requested such as an ATM card or checking account.
Payable on Death Account: A payable on death (“P.O.D.”) account is an account payable on request to one person during his/her lifetime and upon that person’s death to one or more P.O.D. payees or to one or more persons during their lifetimes and, on the death of all of them, to one or more P.O.D. payees. An individual or joint with right of survivorship account may also be a P.O.D. account.
Texas Uniform Transfers To Minors Act (TUTMA) Account: This is an account established under the Texas Uniform Transfers to Minors Act. A donor irrevocably transfers the money deposited in the account to a custodian for the benefit of the minor. The custodian of the account handles the funds for the minor until the minor is 21 years of age, which time the custodian is required to deliver the funds to the individual. Neither the donor of the money nor the custodian is entitled to use or to benefit from the money.
Trust Account: PECU offers revocable, irrevocable, estate, guardianship and other fiduciary accounts. These accounts may require certain documents that will need to be reviewed by the credit union’s attorney prior to opening the account.