The proposed Uniform Special Deposits Act of 2025 establishes a legal framework for special deposits in the District of Columbia, defining them as bank deposits made for specific purposes with beneficiary entitlements determined by specified contingencies. The Act aims to clarify the treatment of these deposits, particularly in bankruptcy or creditor claims situations, and provides banks and depositors with greater certainty regarding their rights and obligations. Key provisions include the establishment of criteria for special deposits, clarification of banks' obligations to pay beneficiaries, and limitations on creditor processes against these deposits. Notably, the Act specifies that neither depositors nor beneficiaries have a property interest in the special deposit itself, but rather in the right to receive payment when conditions are met, and it restricts banks' ability to exercise setoff rights against special deposits.

Additionally, the Act emphasizes an "opt-in" mechanism, requiring both banks and depositors to agree to designate a deposit as special, ensuring statutory coverage. It outlines the relationship between banks and beneficiaries as a debtor-creditor relationship rather than a fiduciary one, allowing beneficiaries to enforce the terms of the special deposit agreement. The Act also includes provisions for the termination of special deposits, defaulting to a five-year term unless specified otherwise, and addresses the handling of remaining balances when beneficiaries cannot be identified. Overall, the Uniform Special Deposits Act seeks to enhance the security and functionality of special deposits while promoting uniformity in application across jurisdictions.