The Uniform Special Deposits Act aims to provide a comprehensive framework for managing special deposits in the District of Columbia by amending Title 28 of the District of Columbia Official Code. The Act defines special deposits, outlines the conditions under which banks must pay beneficiaries, and clarifies that neither depositors nor beneficiaries have a property interest in the special deposit itself. Key provisions include the establishment of permissible purposes for special deposits, the obligations of banks regarding payments, and limitations on banks' rights to setoff against these deposits. The Act also specifies that banks do not have a fiduciary duty to depositors or beneficiaries and outlines the circumstances under which banks may be held liable for noncompliance.

Additionally, the bill introduces provisions that clarify a bank's obligations after paying the remaining balance of a special deposit and emphasizes the importance of principles of law and equity, which will supplement the chapter unless inconsistent. It includes transitional provisions that apply to special deposits made under agreements executed on or after the effective date, as well as those made under prior agreements if all parties consent to amend them. The bill also includes a fiscal impact statement and will take effect following approval by the Mayor and a 30-day congressional review period.