The proposed bill, known as the "Uniform Special Deposits Act," introduces a new chapter (384-H) to existing law that specifically governs deposits held at banks and credit unions for designated contingent purposes on behalf of a beneficiary. It establishes key definitions such as "account agreement," "beneficiary," "contingency," and "special deposit," while outlining the rights and obligations of banks and depositors. The bill emphasizes the significance of the account agreement in defining the relationship between parties and clarifies that its provisions apply regardless of the geographical location of the parties or the deposit. It also ensures that certain legal protections cannot be altered by agreement, thereby maintaining essential safeguards.

Additionally, the bill details the conditions under which amendments to account agreements can be made, particularly concerning beneficiaries, and specifies the requirements for a deposit to qualify as a special deposit. It clarifies the payment obligations of banks to beneficiaries and states that neither depositors nor beneficiaries hold a property interest in the special deposit itself. The bill also addresses creditor processes related to special deposits and outlines the duties and liabilities of banks, emphasizing that they do not have fiduciary duties. Transitional provisions are included for special deposits made under prior agreements, and the act is set to take effect 60 days after passage. The bill incorporates principles from the Uniform Commercial Code and consumer protection laws, ensuring uniformity across jurisdictions that adopt this act.