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 in financial institutions. It defines key terms such as "account agreement," "bank," "beneficiary," and "special deposit," and sets forth requirements for a deposit to qualify as a special deposit, including the necessity for it to benefit at least two beneficiaries. The bill outlines the obligations of banks regarding payments to beneficiaries, the enforceability of creditor processes against banks holding special deposits, and the rights and liabilities of depositors and beneficiaries. Notably, it clarifies that neither depositors nor beneficiaries have a property interest in the special deposit itself, but rather in the right to receive payment.

Furthermore, the bill stipulates that unless otherwise specified in the account agreement, a special deposit will terminate five years after it is first funded. 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. The legislation emphasizes uniformity in application across jurisdictions and includes a severability clause to ensure the enforceability of remaining provisions if any are deemed invalid. The act will apply to special deposits made under agreements executed on or after its effective date, as well as certain deposits made under prior agreements with consent for amendments. The act is set to take effect upon passage.