Bill > HF2233

This bill adopts the Uniform Special Deposits Act, which creates a new legal framework for a specific type of bank deposit called a "special deposit". A special deposit is a deposit of funds in a bank for the benefit of at least two beneficiaries, denominated in a government-authorized currency, serving a permissible purpose (such as escrow, security deposits, compensation payments, or financial market infrastructure support), and subject to a specific contingency. The act establishes detailed rules for how these special deposits can be managed, including defining the rights and responsibilities of banks, depositors, and beneficiaries. Key provisions include restrictions on creditor claims against special deposits, limitations on the bank's liability, and rules about how and when beneficiaries can be paid. The bank is not considered to have a fiduciary duty for these deposits and can only be liable for direct damages resulting from non-compliance with the agreement. The special deposit typically terminates after five years unless otherwise specified in the account agreement, and if a beneficiary cannot be located, the remaining balance is returned to the depositor. The act is designed to provide a standardized approach to managing these specialized financial arrangements and will apply to new agreements made on or after August 1, 2025.

Business and Industry, Justice

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2233&ssn=0&y=2025