The proposed bill introduces CHAPTER 35, titled "THE RHODE ISLAND SPECIAL DEPOSITS ACT," to Title 19 of the General Laws, establishing a legal framework for special deposits held by banks. It defines essential terms such as "account agreement," "bank," "beneficiary," and "special deposit." A deposit qualifies as a special deposit if it benefits at least two beneficiaries, serves a permissible purpose as outlined in the account agreement, and is subject to a contingency.

The bill clarifies that neither depositors nor beneficiaries hold a property interest in the special deposit itself, but rather in the right to receive payment from the bank. It details the obligations of banks regarding payments to beneficiaries, stating that unless the account agreement provides otherwise, the bank is obligated to pay a beneficiary if there are sufficient collected funds in the special deposit. The bill also addresses the enforceability of creditor processes against special deposits, indicating that such processes are generally not enforceable against the bank unless specific conditions are met.

Additionally, the legislation specifies that a special deposit will terminate five years after it is first funded unless otherwise provided in the account agreement. If a bank cannot identify or locate a beneficiary at the time of termination, it must pay the remaining balance to the depositor(s) as beneficiaries, after which the bank has no further obligations regarding the special deposit.

The act ensures that Rhode Island's general laws related to consumer protection, banking deposits, and other relevant areas will apply unless inconsistencies arise. It includes provisions for uniformity across jurisdictions, transitional measures for existing deposits, and a severability clause to maintain the act's integrity. The act is set to take effect upon passage.