The proposed bill establishes Chapter 6-08.6 of the North Dakota Century Code, introducing the Uniform Special Deposits Act. This chapter defines key terms related to special deposits, such as "account agreement," "beneficiary," "depositor," and "special deposit." It outlines the requirements for a deposit to be classified as a special deposit, which includes having at least two beneficiaries, being denominated in an authorized medium of exchange, and serving a permissible purpose as stated in the account agreement. The bill clarifies that depositors or beneficiaries do not have a property interest in the special deposit itself but rather a right to receive payment if the bank or credit union is obligated to pay. It also allows for amending account agreements under certain conditions, particularly concerning beneficiaries.

Additionally, the bill introduces provisions regarding the rights of banks and credit unions, allowing them to exercise a right of recoupment or setoff against obligations to pay a beneficiary, even if the payment is funded from the special deposit. It specifies that these institutions do not have a fiduciary duty concerning special deposits and outlines their duties and liabilities, including compliance with account agreements and limited liability for noncompliance. The bill states that a special deposit will terminate five years after it is first funded unless otherwise specified in the account agreement. If a beneficiary cannot be identified or located upon termination, any remaining balance must be paid to the depositor as a beneficiary. The provisions will apply to special deposits made under agreements executed after July 31, 2025, and to certain deposits made under agreements executed before that date if all parties agree to amend the agreement.