The bill amends the Code of West Virginia by introducing the Uniform Special Deposits Act, which establishes a framework for special deposits held by banks. It includes definitions of key terms such as "account agreement," "bank," "beneficiary," and "special deposit," and outlines the requirements for creating a special deposit, including the necessity for a permissible purpose and the involvement of at least two beneficiaries. The act also specifies the obligations of banks regarding payments to beneficiaries, the conditions under which creditor processes can be enforced against special deposits, and the limitations on recoupment or setoff against such deposits.

Additionally, the bill clarifies the rights and liabilities of banks and beneficiaries, stating that neither has a property interest in the special deposit itself, but rather in the right to receive payment under certain conditions. It establishes a five-year termination period for special deposits unless otherwise agreed, and provides for the payment of any remaining balance to the depositor if beneficiaries cannot be identified. The act aims to promote uniformity in the application of the law across jurisdictions and includes transitional provisions for existing agreements to be governed by the new article if all parties consent.

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
Enrolled 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