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 these deposits.

Additionally, the bill clarifies the rights and liabilities of banks in relation to special deposits, stating that banks do not have a fiduciary duty to depositors or beneficiaries and that their liability is limited to damages directly caused by noncompliance with the account agreement or the act. The act mandates that special deposits terminate five years after funding unless otherwise agreed, and it promotes uniformity in application across jurisdictions. The provisions of existing laws related to deposits and principles of law and equity will supplement the act, ensuring comprehensive governance of special deposits in West Virginia.

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