Bill > SF2942

This bill adopts the Uniform Special Deposits Act, which establishes a comprehensive legal framework for special deposit accounts in Minnesota. The act defines a special deposit as a bank account created for the benefit of at least two beneficiaries, with a specific permissible purpose and subject to a contingency. Key provisions include establishing clear rules for how banks handle these special deposits, including payment obligations, property interests, and limitations on creditor claims. The bill specifies that neither depositors nor beneficiaries have a direct property interest in the special deposit itself, only in the right to receive payment under certain conditions. Banks are given specific guidelines about their duties, including that they do not have a fiduciary responsibility and are only liable for damages directly caused by non-compliance with the agreement. The act also provides rules for account amendments, termination (typically after five years), and how banks should handle situations where beneficiaries cannot be identified. The law is designed to provide clarity and uniformity in handling special deposit accounts, with provisions that balance the interests of depositors, beneficiaries, and banks, and will apply to new account agreements starting August 1, 2025.

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https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2942&ssn=0&y=2025