The proposed bill introduces the "Rhode Island Special Deposits Act," which amends Title 19 of the General Laws to establish a comprehensive legal framework for special deposits in financial institutions. It defines key terms related to special deposits, such as "account agreement," "beneficiary," and "special deposit," and outlines the scope of the chapter, including the choice of law and dispute resolution forums. The bill clarifies that it applies to any special deposit under an account agreement that indicates the intention to be governed by this chapter, regardless of the relationship to the state. Importantly, it does not contain any deletions from current law but emphasizes that the chapter does not affect rights related to other types of deposits or alter the voidability of fraudulent deposits.

Additionally, the bill specifies that banks do not have a fiduciary duty concerning special deposits and establishes a debtor-creditor relationship when a bank is obligated to pay a beneficiary. It limits banks' liability for noncompliance with account agreements to direct damages, excluding consequential or punitive damages unless stated otherwise by Rhode Island law. The bill also sets a five-year termination period for special deposits unless specified otherwise and includes transitional provisions for agreements executed before the act's effective date, provided all parties consent to amend them. A severability clause ensures that if any provision is invalidated, the remaining provisions will still be enforceable. The act is set to take effect upon passage.