The proposed bill seeks to establish the Uniform Special Deposits Act in West Virginia by introducing a new article to the Code of West Virginia, 1931. This article defines special deposits as those made under an account agreement for the benefit of at least two beneficiaries and outlines the obligations of banks regarding these deposits. Key provisions include the clarification that neither depositors nor beneficiaries hold a property interest in the special deposit itself, but rather in the right to receive payment if the bank is obligated to do so. The bill also prohibits banks from exercising recoupment or setoff against special deposits, with certain exceptions, and details the bank's duties and liabilities concerning these deposits.

Additionally, 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) and will have no further obligations regarding that special deposit. The legislation emphasizes the importance of uniformity in the application of the act across jurisdictions and applies to special deposits made under agreements executed on or after its effective date, as well as to prior agreements if all parties consent to amend them. This bill was recommended for passage by the Commission on Interstate Cooperation during the 2025 legislative session.

Statutes affected:
Introduced Version: 31A-9-1, 31A-9-2, 31A-9-3, 31A-9-4, 31A-9-5, 31A-9-6, 31A-9-7, 31A-9-8, 31A-9-9, 31A-9-10, 31A-9-11, 31A-9-12, 31A-9-13, 31A-9-14, 31A-9-15, 31A-9-16