Withdrawing money from bearer account without passbook

A reader holds a bearer account with a local bank. This account is reaching its maturity, however the reader is not sure when, because recently, he had difficulties in finding the bearer account passbook. Since he believes it may be lost, he would like to know, what procedures should be taken to withdraw the money from the bearer account without producing the relative passbook .

The bank with whom the bearer account is held will, in all probability, only release the money to the reader upon a court order to do so. In the absence of the bearer account passbook, the bank is entitled to refuse to release the money unless the reader obtains a court judgment that, to some extent, serves to substitute the lost passbook.

Indeed, recent caselaw has established that if, on production of sufficient and convincing proof, the reader proves that he is the owner of the bearer account, he is entitled to obtain a court declaration to that effect. Consequently, the bank could be obliged to release the money to him. In such circumstances, the bank is entitled to assume that the actual holder of the lost passbook is in bad faith unless the court, in subsequent proceedings, finds otherwise.

Therefore, to withdraw the money held in the bearer account, the reader would have to file a lawsuit against the bank with whom the account is held. He would have to request the court to order that:

(a) he is the owner of the money held in the bearer account;

(b) the bank issues a bearer account passbook to the reader equivalent to the sum of money deposited in the account;

(c) the bank does not release the money and any interest thereon to third parties who may present the bank with the relative bearer account passbook;

(d) the bank releases the money and accumulated interest to the reader subject to any guarantee that the court may order the reader to give to the bank.

If the reader's proof is satisfactory and convincing to the court, it would, in all probability, order the bank to release the capital and accumulated interest held in the bearer account to the reader, provided that:

(a) he will only be able to withdraw the money after the lapse of a specified time that will start to run from the date of the court order;

(b) he must publish, in all newspapers, a notice stating that the passbook for the relative bearer account held with the relative bank has been lost and any person in possession of this passbook should immediately notify the bank and the reader;

(c) he shall give a sufficient guarantee to the bank for damages it may suffer against any future claim which it may receive by the actual holder of the bearer account passbook on which a court judgment may condemn the bank to pay the holder of the passbook. The guarantee may also contain a condition that the reader is to be called in any proceedings that the holder of the bearer account passbook might institute against the bank.

This guarantee usually terminates if the bearer account passbook is found and/or retrieved by the reader or if the third party in possession of the passbook would lose the lawsuit filed against the bank for the release of the money held in the bearer account.

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