My question involves a banking matter in the State of: Alabama
My mother died in October of 2005. She was receiving a
> monthly check of $1,845.00 as a loan repayment she made to a software
> company. I notified the company of her death and for some reason the
> president of the company kept sending the checks to her address. The
> checks were made yo my mother. I found out this past Feburary that my
> sister, who moved into my mother's house with her family, opened a new
> account at the local bank and has been depositing the checks with 'for
> deposit only' on the back of the check. 26 checks in all. She and my
> brother-in-law are joint owners on the account and both have written
> at least one check apiece from the account. On for $888.00 and one for
> $800.00. The software company still has some $11,00.00 of the loan
> balance. When I found out about this and started asking questions,
> the bank and the company froze the accounts and had me and my sister
> sign a release from prosecution agreement just to get the funds. There
> is a will but i t has not been probated. How was my sister allowed to
> do this and why would I need to sign a release form just to have
> access to my mother's money? Any banking laws broken here? This
> happened in Alabama.