SB 561
Relating to Uniform Special Deposits Act
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill establishes the Uniform Special Deposits Act in West Virginia, aiming to standardize rules for special deposits held in banks. It defines key terms like ‘special deposit,’ ‘beneficiary,’ and ‘contingency,’ and outlines requirements for creating and managing these deposits. The bill addresses issues such as payment obligations, creditor rights, and the bank’s responsibilities, including limitations on recoupment and a five-year term for most special deposits.
Key provisions
- Defines key terms related to special deposits, including ‘account agreement,’ ‘beneficiary,’ and ‘contingency.’
- Specifies requirements for establishing a ‘special deposit,’ including a permissible purpose and a contingency.
- Outlines the bank’s obligations to pay beneficiaries when conditions are met.
- Limits the bank’s ability to recoup or set off against a special deposit, with exceptions for specific circumstances.
- Establishes a five-year term for most special deposits, with provisions for termination and payment of remaining balances.
- Clarifies that neither a depositor nor a beneficiary has a property interest in the special deposit.
- Addresses creditor process enforcement against the bank holding the special deposit.
- Allows for injunctive relief in certain situations to protect special deposits.
Who is affected
- Banks
- Depositors
- Beneficiaries
- Financial Institutions
- Individuals
Notable changes
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