The proposed bill establishes the Uniform Special Deposits Act within the Code of West Virginia, creating a structured framework for special deposits in banking. It defines key terms such as "account agreement," "bank," "beneficiary," and "special deposit," and sets forth requirements for creating a special deposit that benefits at least two beneficiaries. The bill outlines the obligations of banks to pay beneficiaries, the rights of depositors and beneficiaries, and the enforceability of creditor processes against special deposits. It also clarifies that banks do not have a fiduciary duty in this context and allows for variations in agreements while providing protections against recoupment or set-off by banks, with certain exceptions.

Significant changes include a stipulation that special deposits will terminate five years after funding unless otherwise specified in the account agreement. If a bank cannot locate a beneficiary upon termination, it must pay the remaining balance to the depositor(s) as beneficiaries, relieving the bank of further obligations. The bill emphasizes the application of principles of law and equity to supplement its provisions and promotes uniformity in the law's application across jurisdictions. It also includes transitional provisions, stating that the article applies to special deposits made under agreements executed on or after the effective date, as well as certain deposits under prior agreements if all parties consent to amend them to comply with the new regulations.

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