Wednesday, August 27, 2014

Can a bank remove money from a custodial bank account to satisfy the custodians debt owed at the bank?

Question

Can a bank remove money from a custodial bank account to satisfy the custodians debt owed at the bank?



Answer

Maybe - bank accounts are subject to regulatory and contractual rights, rules and obligations. You would have to look at the bank's account details. As one small example, custodial fees that are part of the account "arrangement" are typically withdrawn automatically on the due date. If this is some "other" kind of debt, it depends on how the custodial account was set up.



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