HB 29

Creates the Uniform Special Deposits Act. Provides that the Act applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the special deposit itself, has a reasonable relation to the State. Provides that a special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit. Provides that, unless the account agreement provides otherwise, a bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit. Provides that a court may enjoin a bank from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate a material fraud with respect to a special deposit.