1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1819 By: Hall
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6 AS INTRODUCED
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7 An Act relating to banking; creating the Uniform
7 Special Deposits Act; providing short title; defining
8 terms; providing scope of act; allowing for
8 agreements to be amended under certain circumstances;
9 specifying what makes a special deposit; permitting
9 termination of accounts under certain circumstances;
10 providing conditions under which a bank may
10 distribute funds to a beneficiary; specifying deposit
11 interests; requiring certain conditions for creditor
11 process; allowing relief; providing conditions for
12 recoupment by a bank; specifying fiduciary duties of
12 bank under this act; setting timeframe and provisions
13 for termination of accounts; permitting uniformity of
13 implementation of act by law; providing for
14 codification; and providing an effective date.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. NEW LAW A new section of law to be codified
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19 in the Oklahoma Statutes as Section 910 of Title 6, unless there is
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20 created a duplication in numbering, reads as follows:
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21 This act shall be known and may be cited as the “Uniform Special
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22 Deposits Act”.
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 1 SECTION 2. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 910.1 of Title 6, unless there
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3 is created a duplication in numbering, reads as follows:
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4 As used in this act:
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5 1. “Account agreement” means an agreement that:
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6 a. is in a record between a bank and one or more
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7 depositors,
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8 b. may have one or more beneficiaries as additional
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9 parties, and
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10 c. states the intention of the parties to establish a
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11 special deposit pursuant to this act;
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12 2. “Bank” means a person engaged in the business of banking
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13 including, but not limited to, a savings bank, savings and loan
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14 association, credit union, trust company, or bank as defined in
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15 Section 102 of Title 6 of the Oklahoma Statutes. Each branch or
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16 separate office of a bank is a separate bank for the purpose of this
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17 act;
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18 3. “Beneficiary” means a person that:
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19 a. is identified as a beneficiary in an account
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20 agreement, or
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21 b. if not identified as a beneficiary in an account
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22 agreement, may be entitled to payment from a special
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23 deposit:
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24 (1) under the account agreement, or
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 1 (2) on termination of the special deposit;
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2 4. “Contingency” means an event or circumstance stated in an
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3 account agreement that is not certain to occur but shall occur
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4 before the bank is obligated to pay a beneficiary;
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5 5. “Creditor process” means attachment, garnishment, levy,
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6 notice of lien, sequestration, or a similar process issued by or on
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7 behalf of a creditor or other claimant;
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8 6. “Depositor” means a person that establishes or funds a
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9 special deposit;
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10 7. “Good faith” means honesty in fact and observance of
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11 reasonable commercial standards of fair dealing;
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12 8. “Knowledge of a fact” means:
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13 a. with respect to a beneficiary, actual knowledge of the
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14 fact, or
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15 b. with respect to a bank holding a special deposit:
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16 (1) if the bank:
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17 (a) has established a reasonable routine for
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18 communicating material information to an
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19 individual to whom the bank has assigned
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20 responsibility for the special deposit, and
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21 (b) maintains reasonable compliance with the
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22 routine, actual knowledge of the fact by
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23 that individual, or
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 1 (2) if the bank has not established and maintained
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2 reasonable compliance with a routine described in
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3 division (1) of this subparagraph or otherwise
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4 exercised due diligence, implied knowledge of the
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5 fact that would have come to the attention of an
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6 individual to whom the bank has assigned
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7 responsibility for the special deposit;
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8 9. “Obligated to pay a beneficiary” means a beneficiary is
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9 entitled under the account agreement to receive from the bank a
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10 payment when:
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11 a. a contingency has occurred, and
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12 b. the bank has knowledge the contingency has occurred.
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13 An “obligation to pay a beneficiary” shall mean the same;
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14 10. “Permissible purpose” means a governmental, regulatory,
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15 commercial, charitable, or testamentary objective of the parties
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16 stated in an account agreement. The term includes an objective to:
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17 a. hold funds:
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18 (1) in escrow, including for a purchase and sale,
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19 lease, buyback, or other transaction,
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20 (2) as a security deposit of a tenant,
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21 (3) that may be distributed to a person as
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22 remuneration, retirement, or other benefit, or
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23 compensation under a judgment, consent decree,
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24 court order, or other decision of a tribunal, or
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 1 (4) for distribution to a defined class of persons
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2 after identification of the class members and
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3 their interest in the funds,
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4 b. provide assurance with respect to an obligation
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5 created by contract, such as earnest money to ensure a
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6 transaction closes,
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7 c. settle an obligation that arises in the operation of a
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8 payment system, securities settlement system, or other
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9 financial market infrastructure,
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10 d. provide assurance with respect to an obligation that
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11 arises in the operation of a payment system,
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12 securities settlement system, or other financial
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13 market infrastructure, or
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14 e. hold margin, other cash collateral, or funds that
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15 support the orderly functioning of financial market
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16 infrastructure or the performance of an obligation
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17 with respect to the infrastructure;
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18 11. “Person” means an individual, estate, business, or
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19 nonprofit entity, government or governmental subdivision, agency, or
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20 instrumentality, or other legal entity. The term may include a
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21 protected series, however denominated, of an entity if the protected
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22 series is established under law that limits, or limits if conditions
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23 specified under law are satisfied, the ability of a creditor of the
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 1 entity or of any other protected series of the entity to satisfy a
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2 claim from assets of the protected series;
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3 12. “Record” means information:
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4 a. inscribed on a tangible medium, or
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5 b. stored in an electronic or other medium and
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6 retrievable in perceivable form;
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7 13. “Special deposit” means a deposit as specified in Section 5
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8 of this act; and
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9 14. “State” means a state of the United States, the District of
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10 Columbia, Puerto Rico, the U.S. Virgin Islands, or any other
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11 territory or possession subject to the jurisdiction of the United
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12 States, including an agency or instrumentality of the state.
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13 SECTION 3. NEW LAW A new section of law to be codified
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14 in the Oklahoma Statutes as Section 910.2 of Title 6, unless there
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15 is created a duplication in numbering, reads as follows:
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16 A. This act shall apply to a special deposit under an account
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17 agreement that states the intention of the parties to establish a
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18 special deposit governed by this act, regardless of whether a party
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19 to the account agreement or a transaction related to the special
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20 deposit, or the special deposit itself, has a reasonable relation to
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21 this state.
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22 B. The parties to an account agreement may choose a forum in
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23 this state for settling a dispute arising out of the special
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24 deposit, regardless of whether a party to the account agreement or a
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 1 transaction related to the special deposit, or the special deposit
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2 itself, has a reasonable relation to this state.
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3 C. This shall not affect:
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4 1. A right or obligation relating to a deposit other than a
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5 special deposit under this act; or
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6 2. The voidability of a deposit or transfer that is fraudulent
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7 or voidable under other law.
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8 SECTION 4. NEW LAW A new section of law to be codified
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9 in the Oklahoma Statutes as Section 910.3 of Title 6, unless there
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10 is created a duplication in numbering, reads as follows:
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11 A. The effect of Sections 2 through 6, 8 through 11, and
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12 Section 13 of this act may not be varied by agreement, except as
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13 provided in those sections. Subject to subsection B of this
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14 section, the effects of Sections 7, 12, and 13 of this act may be
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15 varied by agreement.
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16 B. A provision in an account agreement or other record that
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17 substantially excuses liability or substantially limits remedies for
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18 failure to perform an obligation under this act is not sufficient to
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19 vary the effect of a provision of this act.
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20 C. If a beneficiary is a party to an account agreement, the
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21 bank and the depositor may amend the agreement without the consent
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22 of the beneficiary only if the agreement expressly permits the
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23 amendment.
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 1 D. If a beneficiary is not a party to an agreement and the bank
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2 and the depositor know the beneficiary has knowledge of the
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3 agreement’s terms, the bank and the depositor may amend the
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4 agreement without the consent of the beneficiary only if the
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5 amendment does not adversely and materially affect a payment right
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6 of the beneficiary.
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7 E. If a beneficiary is not a party to an account agreement and
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8 the bank and the depositor do not know whether the beneficiary has
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9 knowledge of the agreement’s terms, the bank and the depositor may
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10 amend the agreement without the consent of the beneficiary only if
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11 the amendment is made in good faith.
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12 SECTION 5. NEW LAW A new section of law to be codified
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13 in the Oklahoma Statutes as Section 910.4 of Title 6, unless there
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14 is created a duplication in numbering, reads as follows:
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15 A deposit is a special deposit if it is:
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16 1. A deposit of funds in a bank under an account agreement;
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17 2. For the benefit of at least two (2) beneficiaries, one or
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18 more of whom may be a depositor;
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19 3. Denominated in a medium of exchange that is currently
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20 authorized or adopted by a domestic or foreign government;
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21 4. For a permissible purpose stated in the account agreement;
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22 and
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23 5. Subject to a contingency.
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 1 SECTION 6. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 910.5 of Title 6, unless there
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3 is created a duplication in numbering, reads as follows:
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4 A. A special deposit shall serve at least one permissible
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5 purpose stated in the account agreement from the time the special
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6 deposit is created in the account agreement until termination of the
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7 special deposit.
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8 B. If, before termination of a special deposit, the bank or a
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9 court determined the special deposit no longer satisfies subsection
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10 A of this section, Sections 8 through 11 of this act cease to apply
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11 to any funds deposited in the special deposit after the special
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12 deposit ceases to satisfy subsection A of this section.
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13 C. If, before termination of a special deposit, the bank
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14 determines the special deposit no longer satisfies subsection A of
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15 this section, the bank may take action it believes is necessary
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16 under the circumstances, including terminating the special deposit.
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17 SECTION 7. NEW LAW A new section of law to be codified
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18 in the Oklahoma Statutes as Section 910.6 of Title 6, unless there
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19 is created a duplication in numbering, reads as follows:
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20 A. Unless the account agreement provides otherwise, the bank is
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21 obligated to pay a beneficiary if there are sufficient actually and
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22 finally collected funds in the balance of the special deposit.
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 1 B. Except as provided in subsection C of this section, the
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2 obligation to pay the beneficiary is excused if the funds available
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3 in the special deposit are insufficient to cover such payment.
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4 C. Unless the account agreement provides otherwise, if the
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5 funds available in the special deposit are insufficient to cover an
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6 obligation to pay a beneficiary, a beneficiary may elect to be paid
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7 the funds that are available or, if there is more than one
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8 beneficiary, a pro rata share of the funds available. Payment to
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9 the beneficiary making the election under this subsection discharges
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10 the bank’s obligation to pay a beneficiary and does not constitute
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11 an accord and satisfaction with respect to another person obligated
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12 to the beneficiary.
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13 D. Unless the account agreement provides otherwise, the
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14 obligation of the bank obligated to pay a beneficiary is immediately
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15 due and payable.
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16 E. The bank may discharge its obligation under this section by:
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17 1. Crediting another transaction account of the beneficiary; or
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18 2. Taking other action that:
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19 a. is permitted under the account agreement for the bank
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20 to obtain a discharge, or
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21 b. otherwise would constitute a discharge under law.
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22 F. If the bank obligated to pay a beneficiary has incurred an
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23 obligation to discharge that obligation of another person, the
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24 obligation of the other person is discharged if action by the bank
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 1 under subsection E of this section would constitute a discharge of
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2 the obligation of the other person under law that determined whether
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3 an obligation is satisfied.
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4 SECTION 8. NEW LAW A new section of law to be codified
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5 in the Oklahoma Statutes as Section 910.7 of Title 6, unless there
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6 is created a duplication in numbering, reads as follows:
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7 A. Neither a depositor nor a beneficiary has a property
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8 interest in a special deposit.
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9 B. Any property interest with respect to a special deposit is
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10 only