Bill > H7265

This bill establishes the Rhode Island Special Deposits Act, which will govern special deposits made through an "account agreement" – a formal record between a bank and one or more depositors, potentially including beneficiaries. A "special deposit" is defined as a deposit of funds in a bank for at least two beneficiaries, for a stated "permissible purpose" (such as holding funds in escrow, as a security deposit, or for distribution), and subject to a "contingency" (an uncertain event that must occur before the bank pays a beneficiary). The act clarifies that neither depositors nor beneficiaries have a property interest in the special deposit itself, but rather in the right to receive payment under specific conditions. It also outlines when creditor processes can be enforced against a special deposit, limits a bank's liability for noncompliance with the account agreement, and specifies rules for the term and termination of these deposits. The act aims to promote uniformity with similar laws in other states and will take effect upon passage.

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