Uniform Special Deposits Act

The Uniform Special Deposits Act governs special deposits — funds a bank holds under an agreement that they be applied to a stated purpose and paid to a designated beneficiary, rather than held as an ordinary deposit account. It sets the requirements a deposit must satisfy to qualify, limits the purposes for which one may be established, and specifies when the bank must pay the beneficiary, along with the bank's duties, its liability, and how the arrangement may terminate. It also allocates the property interests of the depositor and the beneficiary and addresses how those interests interact with creditor process, injunctive relief, and a bank's rights of recoupment or setoff, while allowing parties to vary many of its terms by agreement.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.