This bill enacts the Uniform Special Deposits Act.
This bill:
- defines terms;
- establishes the scope of the Uniform Special Deposits Act;
- allows parties to an agreement under the Uniform Special Deposits Act to choose a forum in Utah for settling a dispute, regardless of whether the dispute occurred in Utah;
- provides that sections of the Uniform Special Deposits Act may vary by agreement or amendment;
- establishes requirements for a special deposit;
- requires that a special deposit serve a permissible purpose;
- provides the conditions under which a bank shall pay a beneficiary funds in the balance of a special deposit;
- establishes the interest of a depositor or beneficiary in a special deposit;
- allows a court to grant relief to prevent a bank from paying a depositor or beneficiary of a special deposit if a payment would result in fraud;
- provides that except in certain circumstances, a bank may not exercise a right of recoupment or set off against a special deposit;
- establishes the duties and liabilities of a bank in regards to a special deposit;
- provides that a special deposit terminates five years after the date on which the special deposit was first funded;
- describes the application of governing law over special deposits;
- provides that the provisions of this act only apply to an agreement executed after the effective date of this bill, unless the parties to a special deposit amend the agreement; and
- provides that the provisions of this act are severable if a provision of the act is found invalid.