HB 2745
Uniform Special Deposits Act
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill establishes the Uniform Special Deposits Act in West Virginia, aiming to standardize the creation and management of special deposits. It defines key terms like ‘special deposit,’ ‘beneficiary,’ and ‘permissible purpose,’ and outlines requirements for establishing and terminating these deposits. The act also addresses creditor rights, bank obligations, and how payments are made to beneficiaries, while prohibiting recoupment of funds from special deposits.
Key provisions
- Defines key terms related to special deposits, including ‘account agreement,’ ‘bank,’ and ‘beneficiary.’
- Specifies requirements for a ‘special deposit,’ such as being linked to an account agreement, having at least two beneficiaries, and having a ‘permissible purpose.’
- Sets a five-year term for special deposits unless otherwise agreed upon.
- Outlines when a bank is obligated to pay a beneficiary, based on a ‘contingency’ and knowledge of its occurrence.
- Prohibits a bank from recouping or setting off against a special deposit.
- Establishes procedures for creditor process enforcement related to special deposits.
- Allows for injunctive relief related to special deposits.
- Provides for the payment of remaining balances in a special deposit after termination.
Who is affected
- Banks
- Depositors
- Beneficiaries
- Financial Institutions
- Individuals
Notable changes
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