The bill introduces the Rhode Island Special Deposits Act, which is a new chapter to be added to Title 19 of the General Laws, establishing a legal framework for the creation, management, and regulation of special deposits in financial institutions within Rhode Island. It defines various terms related to special deposits, such as "account agreement," "bank," "beneficiary," and "special deposit," among others. The chapter applies to any special deposit that indicates an intention to be governed by this chapter and allows for the selection of a forum within the state for dispute resolution. The bill does not remove any existing legal language but adds new provisions, including the establishment of special deposits, the obligations of banks and depositors, and the conditions for beneficiary entitlements.

The bill clarifies that banks do not have a fiduciary duty regarding special deposits and establishes a debtor-creditor relationship when a bank is obligated to pay a beneficiary. It limits the bank's liability to direct damages caused by noncompliance with the account agreement and allows banks to rely on records presented in good faith. Special deposits terminate five years after funding unless otherwise stated in the account agreement, and any remaining balance is paid to the depositor(s) if beneficiaries cannot be identified or located. The act seeks uniformity among jurisdictions that enact it and applies to special deposits made under agreements executed on or after the effective date, as well as to earlier agreements if amended to comply. The act includes a severability clause and will take effect upon passage.