Bill > A05345

This bill enacts the Uniform Special Deposits Act in New York, creating a new legal framework for a specific type of bank deposit arrangement called a "special deposit". The act establishes comprehensive rules for how special deposits can be created and managed, defining them as deposits made under an account agreement that are for the benefit of at least two beneficiaries, denominated in a government-authorized currency, serving a permissible purpose (such as escrow, security deposits, or financial market infrastructure support), and subject to a specific contingency. The bill provides detailed provisions covering various aspects of special deposits, including how banks can interact with these deposits, the rights and limitations of depositors and beneficiaries, and the circumstances under which payments can be made. Key protections include limiting a bank's liability, preventing creditor process from interfering with special deposits except under specific conditions, and establishing that neither depositors nor beneficiaries have a direct property interest in the deposit itself. The act aims to create a uniform approach to special deposits across jurisdictions, offering clear guidelines for establishing, managing, and terminating these unique financial arrangements. The bill will take effect on the first day of January following its passage into law.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A5345