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 key terms such as "account agreement," "bank," "beneficiary," and "special deposit," and outlines the requirements for a deposit to qualify as a special deposit, including the necessity for it to benefit at least two beneficiaries. The bill specifies that a deposit is a special deposit if it is made under an account agreement, for a permissible purpose, and subject to a contingency.

The act 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. It also clarifies that creditor processes are generally not enforceable against the bank holding a special deposit, except under certain conditions.

Importantly, the bill states that neither depositors nor beneficiaries have a property interest in the special deposit itself, but rather in the right to receive payment from the bank if the bank is obligated to pay a beneficiary. The act stipulates that a special deposit will terminate five years after it is first funded unless otherwise specified 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.

The legislation emphasizes uniformity in application across jurisdictions and includes a severability clause to maintain 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 amendment. The act is set to take effect upon passage.