Prime Sponsor
Sen. Michael K. McKell
Position
M
Status
Senate/ to Governor (3/17/2025)
Comments
This bill:
▸defines terms;
▸establishes the scope of the Uniform Special Deposits Act;
▸allows parties to an agreement under the Uniform Special Deposits Act to choose a forum in Utah for settling a dispute, regardless of whether the dispute occurred in Utah;
▸provides that sections of the Uniform Special Deposits Act may vary by agreement or amendment;
▸establishes requirements for a special deposit;
▸requires that a special deposit serve a permissible purpose;
▸provides the conditions under which a bank shall pay a beneficiary funds in the balance of a special deposit;
▸establishes the interest of a depositor or beneficiary in a special deposit;
▸allows a court to grant relief to prevent a bank from paying a depositor or beneficiary of a special deposit if a payment would result in fraud;
▸provides that except in certain circumstances, a bank may not exercise a right of recoupment or set off against a special deposit;
▸establishes the duties and liabilities of a bank in regards to a special deposit;
▸provides that a special deposit terminates five years after the date on which the special deposit was first funded;
▸describes the application of governing law over special deposits;
▸provides that the provisions of this act only apply to an agreement executed after the effective date of this bill, unless the parties to a special deposit amend the agreement; and
▸provides that the provisions of this act are severable if a provision of the act is found invalid.
Details »