The proposed bill introduces a new chapter, 6-08.6, in the North Dakota Century Code, establishing the Uniform Special Deposits Act. This chapter defines essential terms related to special deposits, such as "account agreement," "beneficiary," "depositor," and "special deposit." It sets forth the criteria for a deposit to qualify as a special deposit, which includes having at least two beneficiaries and being in an authorized medium of exchange. The bill outlines the responsibilities of banks and credit unions regarding payments to beneficiaries and the enforcement of creditor processes against them. Notably, it clarifies that depositors or beneficiaries do not hold a property interest in the special deposit itself but have a right to payment under certain conditions.

Furthermore, the bill stipulates that banks and credit unions may exercise a right of recoupment or setoff against obligations to pay a beneficiary, even if the payment originates from the special deposit. It specifies that these financial institutions do not have a fiduciary duty concerning special deposits and outlines their duties and liabilities, including compliance with account agreements. The bill also establishes that a special deposit will terminate five years after being funded unless otherwise stated in the account agreement, with any unidentifiable beneficiary balance reverting to the depositor. It emphasizes the need for uniform application of the law across states and applies to special deposits made under agreements executed after July 31, 2025, allowing for amendments to existing agreements to align with the new regulations.