The proposed bill seeks to incorporate the Uniform Special Deposits Act into Minnesota law by adding new sections to chapter 47 of the Minnesota Statutes. It establishes a detailed framework for special deposits, defining essential terms such as "account agreement," "beneficiary," "special deposit," and "permissible purpose." The bill stipulates that a deposit must benefit at least two beneficiaries and serve a permissible purpose as outlined in the account agreement to qualify as a special deposit. It also delineates the responsibilities of banks regarding payments to beneficiaries, the rights of depositors and beneficiaries, and the conditions under which creditor processes can be enforced against banks holding these deposits.

Additionally, the bill clarifies that banks do not hold a fiduciary duty but maintain a debtor-creditor relationship with beneficiaries, and it specifies that a special deposit will terminate five years after funding unless otherwise stated in the account agreement. The legislation emphasizes compliance with the account agreement and limits banks' liability to damages directly caused by noncompliance. It also includes provisions to promote uniformity in the application of the act across jurisdictions and outlines transitional provisions for special deposits made under agreements executed on or after August 1, 2025, allowing earlier agreements to be governed by the new sections if all parties consent to amendments.