Rule detail : 251764

WV LEG Uniform Special Deposits Act

Updated on: May 5, 2025

Apr. 2025 WV LEG Governor Approval
On Apr. 30, 2025, WV LEG governor signed, effective 90 days from passage, Jul. 10.

WV LEG enacted SB 561, to adopt article WV LEG 31A, Uniform special deposits act.
Bill Provisions
Governs deposits made with a specific beneficiary designated upon a contingency.
Special deposits must serve at least one permissible purpose, as in account agreement
These deposits held by the bank and are payable once defined event/condition occurs.
Outlines what a special deposit must include to be valid and legally protected.
Clarifies the bank's responsibilities and permissible purposes for these special deposits.
Prohibits banks from using the special deposit to cover debts owed by the depositor.
It clarifies when a bank is obligated to pay the funds to the designated beneficiary.
Details enforceability of creditor process and the termination of special deposits.
Legislative History
On Feb. 20, 2025, bill introduced in Senate; on Mar. 11, 2025, bill passed in Senate.
On Mar. 11, 2025, bill introduced in House; on Apr. 11, 2025, bill passed the House.
On Apr. 10, 2025, House concurred with Senate; on Apr. 17, bill sent to the governor.
Effectiveness
If approved, act will come into effect 90 days from passage (Jul. 10, 2025).
Apr. 2025 WV LEG Governor Approval
On Apr. 30, 2025, WV LEG governor signed, effective 90 days from passage, Jul. 10.

Regulators

WV LEG

Entity Types

Bank; CNSM; CU; Thrift

Reference

Bill, 5/1/2025; Bill, SB561, 4/17/2025; Citation: WV LEG 31A;

Functions

Compliance; Legal; Operations; Product Administration

Countries

United States of America