This bill proposes the adoption of the Uniform Special Deposits Act in Minnesota, which will introduce new legal provisions to be codified in Minnesota Statutes, chapter 47. The Act establishes a framework for special deposits, defining essential terms such as "account agreement," "bank," "beneficiary," and "special deposit." It outlines the criteria for a deposit to be classified as a special deposit, requiring it to benefit at least two beneficiaries and serve a permissible purpose. The bill details the obligations of banks regarding payments to beneficiaries, the rights of depositors and beneficiaries, and the enforceability of creditor processes against banks holding special deposits. Importantly, it clarifies that depositors and beneficiaries do not have a property interest in the special deposit itself but rather in the right to receive payment from the bank.

Furthermore, the bill introduces new provisions to ensure uniformity in the application and interpretation of the law across jurisdictions that adopt it, particularly through the newly inserted section 47.98, which emphasizes the importance of consistent legal standards. It also includes a transitional provision under section 47.985, specifying that the new regulations will apply to special deposits made under account agreements executed on or after August 1, 2025, as well as to those made under agreements executed before that date, provided all parties agree to amend the agreement to classify the deposit as a special deposit and that it meets the requirements of section 47.92. Overall, the Uniform Special Deposits Act aims to enhance the legal structure for managing special deposits, ensuring better protection for all parties involved.