The proposed bill seeks to establish a new chapter, 6-08.6, in the North Dakota Century Code to govern the Uniform Special Deposits Act. It introduces definitions for key terms such as "account agreement," "beneficiary," "depositor," and "special deposit," and sets forth the criteria for a deposit to qualify as a special deposit, which includes benefiting at least two beneficiaries and serving a permissible purpose as outlined in the account agreement. The bill also clarifies that banks or credit unions are only obligated to make payments to beneficiaries if sufficient funds are available in the special deposit. Additionally, it addresses the enforceability of creditor processes against these financial institutions, stating that such processes are generally not enforceable unless specific conditions are met.

Moreover, the bill outlines the rights and responsibilities of banks and credit unions regarding special deposits, including their ability to recoup or set off obligations to pay a beneficiary. It specifies that these institutions do not hold a fiduciary duty concerning special deposits, establishing a debtor-creditor relationship instead. The bill also mandates that a special deposit will terminate five years after it is first funded unless otherwise stated in the account agreement, and if a beneficiary cannot be located upon termination, the remaining balance will be paid to the depositor. The legislation emphasizes the need for uniformity in the application of these laws across states and applies to special deposits made under agreements executed after July 31, 2025, as well as certain deposits made under prior agreements if amended.