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, requiring it to benefit at least two beneficiaries and serve a permissible purpose as outlined in the account agreement. The bill also delineates the responsibilities of banks and credit unions regarding payments to beneficiaries, the property interests of depositors and beneficiaries, and the enforceability of creditor processes against special deposits. Notably, creditor processes are generally not enforceable against these financial institutions unless specific conditions are met, and they are restricted from exercising rights of recoupment or set-off against special deposits under certain circumstances.

Furthermore, the bill clarifies that banks and credit unions do not have a fiduciary duty concerning special deposits and outlines their obligations to comply with account agreements, along with limited liability for noncompliance. It specifies that a special deposit will terminate five years after funding unless otherwise stated in the account agreement, with any unclaimed balance reverting to the depositor if a beneficiary cannot be located. The legislation emphasizes the need for uniformity in the application of the law across states and incorporates principles of law and equity to support the chapter, applicable to special deposits made under agreements executed after July 31, 2025, with provisions for amending pre-existing agreements with mutual consent.