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 interests of depositors and beneficiaries, stating that neither has a property interest in the special deposit itself, but rather in the right to receive payment if the bank is obligated to do so. It establishes a five-year termination period for special deposits unless otherwise agreed, and it allows for the supplementation of the article by existing West Virginia laws. The act aims to promote uniformity in the application of the law across jurisdictions and includes transitional provisions for deposits made under agreements executed before the enactment of this article.

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