This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 356.— An account is opened in the name of three executors. One dies leaving no will, and his heirs make an arrangement between themselves regarding his estate. Should the bank allow the remaining two executors to draw the money ? No provision was made in the will for the appointment of a substitute in the event of the death of any of the executors.
Answer.—This question is in effect answered in the reply to Question 361 given later. Under the ordinary rule two survivors of three depositors would be entitled to draw the money. In addition to this it will be seen from sub-sec. 2 of sec. 84 of the Bank Act that where trust money stands in the name of three persons the receipt of two is a sufficient discharge therefor. Even if the three executors were alive the bank would be authorized to pay the money to two of them, although as a practice this is open to objection.
If out of the three executors one should die, the estate is vested in the remaining two. If a second dies it becomes vested in the survivor, and although he has power, and it may be his duty to appoint another trustee, still until this is actually done he has full control of the trust estate. Should he die the control passes to his executors, then to the surviving executors, or executor, then to the executors of the last surviving executor, and so on.