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, the enforceability of creditor processes against special deposits, and the rights of depositors and beneficiaries. Notably, it clarifies that depositors and beneficiaries do not hold a property interest in the special deposit itself but have a right to receive payment under certain conditions.

Additionally, the bill specifies that banks and credit unions may exercise a right of recoupment or setoff against obligations to pay a beneficiary, even if the payment is sourced from the special deposit. It establishes 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 mandates that a special deposit will terminate five years after it is first funded unless otherwise stated in the account agreement. If a beneficiary cannot be identified or located upon termination, any remaining balance must be paid to the depositor. The provisions of this Act will apply to special deposits made under agreements executed after July 31, 2025, and to certain deposits made under earlier agreements if all parties consent to amendments.