Case of the Week丨Can a bank refuse a withdrawal request from a depositor's guardian in order to protect the interests of the person under guardianship?

Wang Zhiming, Lawyer, a member of the Communist Party of China, Director of the Civil and Commercial Arbitration Department, Deputy Director of the Real Estate Department, Mediator of Hangzhou Tianxin Mediation Room, member of the Criminal Procedure Law Professional Committee of the Municipal Lawyers Association, and lawyer of the Hangzhou Wenzhou Chamber of Commerce Lawyers Advisory Group. He once worked in the legal affairs department of a large-scale general contracting enterprise in the province, mainly focusing on construction and real estate, corporate business, as well as litigation and arbitration of civil and commercial disputes such as contract disputes, personal injury compensation, and debt disputes, and criminal defense. He has handled a large number of litigation and arbitration cases and has rich practical experience in risk prevention and crisis management in corporate legal affairs. He has served as a long-term legal counsel or a member of the service lawyer team for various enterprises, providing advice and suggestions for preventing and avoiding legal risks and promoting the healthy development of enterprises.

Contact Information: Mobile: 13957113897 Email: wangzhiming@htxls.com
 

Can a bank refuse a guardian's withdrawal request on the grounds of protecting the interests of the ward?

Case Summary

  Zhang Mou 1 and Zhang Mou 2 are siblings. Their father has passed away, and their mother, Hu Mou, has been hospitalized for long-term recuperation. On June 14, 2016, Zhang Mou 2, Hu Mou's daughter, applied to the people's court to declare Hu Mou incapable of civil conduct due to "organic mental disorder." The court legally recognized and declared Hu Mou incapable of civil conduct. On June 30, 2016, Zhang Mou 1 and Zhang Mou 2 had a dispute over Hu Mou's guardianship. After understanding the family situation of Hu Mou, Zhang Mou 1, and Zhang Mou 2, the community committee designated Hu Mou's son, Zhang Mou 1, as the guardian. On July 8, 2016, Zhang Mou 2 filed a lawsuit to change the guardianship to herself. On September 29, 2016, the court issued a civil judgment rejecting Zhang Mou 2's application. On September 30, 2016, and November 9-11, 2016, without Zhang Mou 1's knowledge, Zhang Mou 2 took Hu Mou from the nursing home to the bank and withdrew 830,000 yuan from Hu Mou's bank account. In January 2017, after discovering the reduction in Hu Mou's bank deposits, Zhang Mou 1, to protect Hu Mou's property safety, provided the court's judgment declaring Hu Mou incapable of civil conduct and the community's notice designating Zhang Mou 1 as Hu Mou's guardian to the bank, requesting the bank to suspend transactions on Hu Mou's account. At the same time, Zhang Mou 1, as the guardian, sued Zhang Mou 2 in court for the return of the deposit in a guardianship dispute. After the court's trial, it legally ruled that Zhang Mou 2 should return 830,000 yuan of Hu Mou's bank deposits to Zhang Mou 1, but Zhang Mou 2 has been delaying the return.

Because of the need for Hu Mou's medical treatment and recuperation expenses, Zhang Mou 1, the guardian, went to a certain bank in June 2017 with relevant materials, requesting to withdraw all of Hu Mou's deposits of more than 600,000 yuan. After the bank reported it to higher levels, the reply was that the account deposit involved a guardianship dispute and, to protect the interests of the ward, Zhang Mou 1's withdrawal request was refused. The specific reasons are: 1. Hu Mou is a person with no capacity for civil conduct, and Zhang Mou 1 fulfills the guardianship obligations, but Zhang Mou 1's request to withdraw Hu Mou's bank deposits is a disposal of the ward's property, which is not only the custody of the ward's property but also does not comply with the relevant provisions on the protection of the ward's rights and obligations. According to Article 18 of the General Principles of Civil Law, the guardian shall not dispose of the ward's property except for the benefit of the ward, so Zhang Mou 1 cannot withdraw Hu Mou's deposit in the bank. 2. Hu Mou's deposit amount is more than 600,000 yuan, a huge sum. Zhang Mou 1 has not provided corresponding materials to prove that the withdrawal of this deposit is to protect the interests of the ward, and there is a suspicion that Zhang Mou 1's withdrawal of Hu Mou's deposit may harm the interests of the ward. 3. Hu Mou's children, Zhang Mou 1 and Zhang Mou 2, have a dispute over guardianship, and the withdrawal of funds may affect Zhang Mou 2's rights and interests. To avoid disputes, the withdrawal of funds must be determined by legal documents. Zhang Mou 1's repeated communication with the bank was fruitless.

Agency Strategy

  Hu Mou's guardian, Zhang Mou 1, entrusted Lawyer Wang Zhiming to act as an agent in this case. The agent believes:

This case is a savings deposit contract dispute. A savings deposit contract refers to a contract in which a depositor deposits RMB or foreign currency into a savings institution, and the savings institution pays the principal and interest according to the depositor's request. After establishing a contractual relationship with the savings institution, the depositor has the right to request the savings institution to pay the deposit, and the savings institution must fulfill the obligation to guarantee payment and cannot refuse or restrict the depositor's withdrawal request for any reason. In this case, Hu Mou deposited savings in a certain bank and established a savings deposit contract relationship with the bank according to law. The bank should fulfill the obligation to guarantee payment according to the depositor's request and cannot refuse or restrict the depositor's withdrawal request for any reason. Hu Mou has been declared by the people's court to be incapable of civil conduct, and Zhang Mou 1 has been designated by the community and confirmed by the court as the guardian. According to Article 18 of the General Principles of the Civil Law of the People's Republic of China and Article 10 of the Supreme People's Court's Opinions on Several Issues Concerning the Implementation of the General Principles of the Civil Law of the People's Republic of China (Trial Implementation), Zhang Mou 1, as the guardian, has the right to manage the ward's property, including withdrawing deposits under the ward's name. The bank, as the counterparty to the savings contract, should ensure the safety of the depositor's principal and interest but has no right to refuse to pay the guardian on the grounds that the guardian's withdrawal of the deposit is a disposal of the ward's property or for the protection of the ward's interests. Therefore, Zhang Mou 1's claim has factual and legal basis, and the bank should pay Hu Mou's deposit of more than 600,000 yuan to Zhang Mou 1.

Handling Result

  Finally, after the agent fully expressed written and oral legal opinions, the opinions were fully adopted by the bank and its superior authorities. The two parties reached a settlement through mediation, and the bank handled the withdrawal procedures for Hu Mou's deposit of more than 600,000 yuan for Zhang Mou 1.

Analysis

In real life, financial institutions such as banks, in order to protect the safety of depositors' funds, often refuse to withdraw funds from wards or heirs that may cause disputes. So, can banks refuse a guardian's withdrawal request on the grounds of protecting the ward's interests? The answer is no. The Commercial Bank Law stipulates that commercial banks should follow the principles of voluntary deposits, free withdrawals, interest on deposits, and confidentiality for depositors when handling personal savings deposit business. Depositors and banks establish a savings deposit contract, and depositors, as depositors, have the right to choose to deposit in banks and also have the right to withdraw freely. At the same time, when a depositor is legally determined to be incapable of civil conduct, according to the law, the guardian has the right to manage and protect the ward's property, which naturally includes withdrawing bank deposits under the ward's name. The bank should fulfill the obligation to guarantee payment.

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