North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2123 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	SENATE BILL NO. 2123
4		-	(Industry and Business Committee)
	1	+	25.0259.03000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Industry and Business Committee
5	7		(At the request of the Commission on Uniform State Laws)
6		-	AN ACT to create and enact chapter 6-08.6 of the North Dakota Century Code, relating ~~to the Uniform~~
7		-	Special Deposits Act; and to provide for application.
	8	+	A BILL for an Act to create and enact chapter 6-08.6 of the North Dakota Century Code, relating
	9	+	to the Uniform Special Deposits Act; and to provide for application.
8	10		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9		-	SECTION 1. Chapter 6-08.6 of the North Dakota Century Code is created and enacted as follows:
	11	+	SECTION 1. Chapter 6-08.6 of the North Dakota Century Code is created and enacted as
	12	+	follows:
10	13		6 - 08.6 - 01. Definitions.
11	14		In this chapter:
12	15		1."Account agreement" means an agreement that:
13	16		a.Is in a record between a bank or credit union and one or more depositors;
14	17		b.May have one or more beneficiaries as additional parties; and
15		-	c.States the intention of the parties to establish a special deposit in accordance ~~with this~~
16		-	chapter.
17		-	2."Bank" means a trust company or a person engaged in the business of banking as ~~defined in~~
18		-	section 6 - 01 - 02.
	18	+	c.States the intention of the parties to establish a special deposit in accordance
	19	+	with this chapter.
	20	+	2."Bank" means a trust company or a person engaged in the business of banking as
	21	+	defined in section 6 - 01 - 02.
19	22		3."Beneficiary" means a person that:
20	23		a.Is identified as a beneficiary in an account agreement; or
21		-	b.If not identified as a beneficiary in an account agreement, may be entitled to ~~payment~~
22		-	from a special deposit:
	24	+	b.If not identified as a beneficiary in an account agreement, may be entitled to
	25	+	payment from a special deposit:
23	26		(1)Under the account agreement; or
24	27		(2)On termination of the special deposit.
25		-	4."Contingency" means an event or circumstance stated in an account agreement which is not
26		-	certain to occur but must occur before the bank or credit union is obligated to pay a
27		-	beneficiary.
28		-	5."Creditor process" means attachment, garnishment, levy, notice of lien, sequestration, or
29		-	similar process issued by or on behalf of a creditor or other claimant.
	28	+	4."Contingency" means an event or circumstance stated in an account agreement which
	29	+	is not certain to occur but must occur before the bank or credit union is obligated to
	30	+	pay a beneficiary.
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	32	+	SENATE BILL NO. 2123
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	58	+	5."Creditor process" means attachment, garnishment, levy, notice of lien, sequestration,
	59	+	or similar process issued by or on behalf of a creditor or other claimant.
30	60		6."Depositor" means a person that establishes or funds a special deposit.
31		-	7."Good faith" means honesty in fact and observance of reasonable commercial ~~standards of~~
32		-	fair dealing.
	61	+	7."Good faith" means honesty in fact and observance of reasonable commercial
	62	+	standards of fair dealing.
33	63		8."Knowledge" of a fact means:
34	64		a.With respect to a beneficiary, actual knowledge of the fact; or
35		-	b.With respect to a bank or credit union holding a special deposit: ~~S. B. NO. 2123 - PAGE 2~~
	65	+	b.With respect to a bank or credit union holding a special deposit:
36	66		(1)If the bank or credit union:
37		-	(a)Has established a reasonable routine for communicating material ~~information~~
38		-	to an individual to whom the bank or credit union has ~~assigned responsibility~~
39		-	for the special deposit; and
40		-	(b)Maintains reasonable compliance with the routine, actual knowledge ~~of the~~
41		-	fact by that individual; or
	67	+	(a)Has established a reasonable routine for communicating material
	68	+	information to an individual to whom the bank or credit union has
	69	+	assigned responsibility for the special deposit; and
	70	+	(b)Maintains reasonable compliance with the routine, actual knowledge
	71	+	of the fact by that individual; or
42	72		(2)If the bank or credit union has not established and maintained reasonable
43		-	compliance with a routine described in paragraph 1 or otherwise exercised ~~due~~
44		-	diligence, implied knowledge of the fact that would have come to the ~~attention of an~~
45		-	individual to whom the bank or credit union has assigned ~~responsibility for the~~
46		-	special deposit.
47		-	9."Obligated to pay a beneficiary" or "obligation to pay a beneficiary" means a ~~beneficiary is~~
48		-	entitled under the account agreement to receive from the bank or credit ~~union a payment~~
49		-	when:
	73	+	compliance with a routine described in paragraph 1 or otherwise exercised
	74	+	due diligence, implied knowledge of the fact that would have come to the
	75	+	attention of an individual to whom the bank or credit union has assigned
	76	+	responsibility for the special deposit.
	77	+	9."Obligated to pay a beneficiary" or "obligation to pay a beneficiary" means a
	78	+	beneficiary is entitled under the account agreement to receive from the bank or credit
	79	+	union a payment when:
50	80		a.A contingency has occurred; and
51	81		b.The bank or credit union has knowledge the contingency has occurred.
52	82		10."Permissible purpose" means a governmental, regulatory, commercial, charitable, or
53		-	testamentary objective of the parties stated in an account agreement. The term ~~includes an~~
54		-	objective to:
	83	+	testamentary objective of the parties stated in an account agreement. The term
	84	+	includes an objective to:
55	85		a.Hold funds:
56		-	(1)In escrow, including for a purchase and sale, lease, buyback, or other transaction;
	86	+	(1)In escrow, including for a purchase and sale, lease, buyback, or other
	87	+	transaction;
57	88		(2)As a security deposit of a tenant;
58		-	(3)That may be distributed to a person as remuneration, retirement or other benefit, or
59		-	compensation under a judgment, consent decree, court order, or other decision of a
60		-	tribunal; or
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	122	+	(3)That may be distributed to a person as remuneration, retirement or other
	123	+	benefit, or compensation under a judgment, consent decree, court order, or
	124	+	other decision of a tribunal; or
61	125		(4)For distribution to a defined class of persons after identification of the class
62	126		members and their interest in the funds;
63		-	b.Provide assurance with respect to an obligation created by contract, including ~~earnest~~
64		-	money to ensure a transaction closes;
	127	+	b.Provide assurance with respect to an obligation created by contract, including
	128	+	earnest money to ensure a transaction closes;
65	129		c.Settle an obligation that arises in the operation of a payment system, securities
66	130		settlement system, or other financial market infrastructure;
67		-	d.Provide assurance with respect to an obligation that arises in the operation of a payment
68		-	system, securities settlement system, or other financial market infrastructure; or
	131	+	d.Provide assurance with respect to an obligation that arises in the operation of a
	132	+	payment system, securities settlement system, or other financial market
	133	+	infrastructure; or
69	134		e.Hold margin, other cash collateral, or funds that support the orderly functioning of
70		-	financial market infrastructure or the performance of an obligation with respect to ~~the~~
71		-	infrastructure.
	135	+	financial market infrastructure or the performance of an obligation with respect to
	136	+	the infrastructure.
72	137		11."Person" means an individual, estate, business or nonprofit entity, government or
73		-	governmental subdivision, agency, or instrumentality, or other legal entity. The term ~~includes a~~
74		-	protected series, however denominated, of an entity if the protected series ~~is established~~
75		-	under law that limits, or limits if conditions specified under law are ~~satisfied, the ability of a~~
76		-	creditor of the entity or of any other protected series of the ~~entity to satisfy a claim from assets~~
77		-	of the protected series. ~~S. B. NO. 2123 - PAGE 3~~
	138	+	governmental subdivision, agency, or instrumentality, or other legal entity. The term
	139	+	includes a protected series, however denominated, of an entity if the protected series
	140	+	is established under law that limits, or limits if conditions specified under law are
	141	+	satisfied, the ability of a creditor of the entity or of any other protected series of the
	142	+	entity to satisfy a claim from assets of the protected series.
78	143		12."Record" means information:
79	144		a.Inscribed on a tangible medium; or
80	145		b.Stored in an electronic or other medium and retrievable in perceivable form.
81	146		13."Special deposit" means a deposit that satisfies section 6 - 08.6 - 04.
82		-	14."State" means a state of the United States, the District of Columbia, Puerto Rico, the United
83		-	States Virgin Islands, or any other territory or possession subject to the jurisdiction of the
84		-	United States. The term includes an agency or instrumentality of the state.
	147	+	14."State" means a state of the United States, the District of Columbia, Puerto Rico, the
	148	+	United States Virgin Islands, or any other territory or possession subject to the
	149	+	jurisdiction of the United States. The term includes an agency or instrumentality of the
	150	+	state.
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85	182		6 - 08.6 - 02. Scope - Choice of law - Forum.
86		-	1.This chapter applies to a special deposit under an account agreement that states the ~~intention~~
87		-	of the parties to establish a special deposit governed by this chapter, ~~regardless of whether a~~
88		-	party to the account agreement or a transaction related to the ~~special deposit, or the special~~
89		-	deposit itself, has a reasonable relation to this state.
90		-	2.The parties to an account agreement may choose a forum in this state for settling a ~~dispute~~
91		-	arising out of the special deposit, regardless of whether a party to the account ~~agreement or a~~
92		-	transaction related to the special deposit, or the special deposit itself, ~~has a reasonable~~
93		-	relation to this state.
	183	+	1.This chapter applies to a special deposit under an account agreement that states the
	184	+	intention of the parties to establish a special deposit governed by this chapter,
	185	+	regardless of whether a party to the account agreement or a transaction related to the
	186	+	special deposit, or the special deposit itself, has a reasonable relation to this state.
	187	+	2.The parties to an account agreement may choose a forum in this state for settling a
	188	+	dispute arising out of the special deposit, regardless of whether a party to the account
	189	+	agreement or a transaction related to the special deposit, or the special deposit itself,
	190	+	has a reasonable relation to this state.
94	191		3.This chapter does not affect:
95		-	a.A right or obligation relating to a deposit other than a special deposit under this chapter;
96		-	or
97		-	b.The voidability of a deposit or transfer that is fraudulent or voidable under other law.
	192	+	a.A right or obligation relating to a deposit other than a special deposit under this
	193	+	chapter; or
	194	+	b.The voidability of a deposit or transfer that is fraudulent or voidable under other
	195	+	law.
98	196		6 - 08.6 - 03. Variation by agreement or amendment.
99	197		1.The effect of sections 6 - 08.6 - 01 through 6 - 08.6 - 05, 6 - 08.6 - 07 through 6 - 08.6 - 10, and
100		-	6 - 08.6 - 13 may not be varied by agreement, except as provided in those sections. Subject to
101		-	subsection 2, the effect of sections 6 - 08.6 - 06, 6 - 08.6 - 11, and 6 - 08.6 - 12 may be varied by
102		-	agreement.
103		-	2.A provision in an account agreement or other record that substantially excuses liability or
104		-	substantially limits remedies for failure to perform an obligation under this chapter is not
105		-	sufficient to vary the effect of a provision of this chapter.
106		-	3.If a beneficiary is a party to an account agreement, the bank or credit union and the depositor
107		-	may amend the agreement without the consent of the beneficiary only if the agreement
108		-	expressly permits the amendment.
109		-	4.If a beneficiary is not a party to an account agreement and the bank or credit union and the
110		-	depositor know the beneficiary has knowledge of the agreement's terms, the bank or credit
111		-	union and the depositor may amend the agreement without the consent of the beneficiary only
112		-	if the amendment does not adversely and materially affect a payment right of the beneficiary.
113		-	5.If a beneficiary is not a party to an account agreement and the bank or credit union and the
114		-	depositor do not know whether the beneficiary has knowledge of the agreement's terms, the
115		-	bank or credit union and the depositor may amend the agreement without the consent of the
116		-	beneficiary only if the amendment is made in good faith.
	198	+	6 - 08.6 - 13 may not be varied by agreement, except as provided in those sections.
	199	+	Subject to subsection 2, the effect of sections 6 - 08.6 - 06, 6 - 08.6 - 11, and 6 - 08.6 - 12 may
	200	+	be varied by agreement.
	201	+	2.A provision in an account agreement or other record that substantially excuses liability
	202	+	or substantially limits remedies for failure to perform an obligation under this chapter is
	203	+	not sufficient to vary the effect of a provision of this chapter.
	204	+	3.If a beneficiary is a party to an account agreement, the bank or credit union and the
	205	+	depositor may amend the agreement without the consent of the beneficiary only if the
	206	+	agreement expressly permits the amendment.
	207	+	4.If a beneficiary is not a party to an account agreement and the bank or credit union
	208	+	and the depositor know the beneficiary has knowledge of the agreement's terms, the
	209	+	bank or credit union and the depositor may amend the agreement without the consent
	210	+	of the beneficiary only if the amendment does not adversely and materially affect a
	211	+	payment right of the beneficiary.
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	244	+	5.If a beneficiary is not a party to an account agreement and the bank or credit union
	245	+	and the depositor do not know whether the beneficiary has knowledge of the
	246	+	agreement's terms, the bank or credit union and the depositor may amend the
	247	+	agreement without the consent of the beneficiary only if the amendment is made in
	248	+	good faith.
117	249		6 - 08.6 - 04. Requirements for special deposit.
118		-	A deposit is a special deposit if it is: ~~S. B. NO. 2123 - PAGE 4~~
	250	+	A deposit is a special deposit if it is:
119	251		1.A deposit of funds in a bank or credit union under an account agreement;
120	252		2.For the benefit of at least two beneficiaries, one or more of which may be a depositor;
121		-	3.Denominated in a medium of exchange that is currently authorized or adopted by a ~~domestic~~
122		-	or foreign government;
	253	+	3.Denominated in a medium of exchange that is currently authorized or adopted by a
	254	+	domestic or foreign government;
123	255		4.For a permissible purpose stated in the account agreement; and
124	256		5.Subject to a contingency.
125	257		6 - 08.6 - 05. Permissible purpose.
126	258		1.A special deposit must serve at least one permissible purpose stated in the account
127	259		agreement from the time the special deposit is created in the account agreement until
128	260		termination of the special deposit.
129		-	2.If, before termination of the special deposit, the bank or credit union or a court ~~determines the~~
130		-	special deposit no longer satisfies subsection 1, sections 6 - 08.6 - 07 ~~through 6 - 08.6 - 10 cease~~
131		-	to apply to any funds deposited in the special deposit after ~~the special deposit ceases to~~
132		-	satisfy subsection 1.
133		-	3.If, before termination of a special deposit, the bank or credit union determines the ~~special~~
134		-	deposit no longer satisfies subsection 1, the bank or credit union may take ~~action the bank or~~
135		-	credit union believes is necessary under the circumstances, ~~including terminating the special~~
136		-	deposit.
	261	+	2.If, before termination of the special deposit, the bank or credit union or a court
	262	+	determines the special deposit no longer satisfies subsection 1, sections 6 - 08.6 - 07
	263	+	through 6 - 08.6 - 10 cease to apply to any funds deposited in the special deposit after
	264	+	the special deposit ceases to satisfy subsection 1.
	265	+	3.If, before termination of a special deposit, the bank or credit union determines the
	266	+	special deposit no longer satisfies subsection 1, the bank or credit union may take
	267	+	action the bank or credit union believes is necessary under the circumstances,
	268	+	including terminating the special deposit.
137	269		6 - 08.6 - 06. Payment to beneficiary by bank or credit union.
138		-	1.Unless the account agreement provides otherwise, the bank or credit union is obligated to pay
139		-	a beneficiary if there are sufficient actually and finally collected funds in the balance of the
140		-	special deposit.
141		-	2.Except as provided in subsection 3, the obligation to pay the beneficiary is excused if the
142		-	funds available in the special deposit are insufficient to cover the payment.
143		-	3.Unless the account agreement provides otherwise, if the funds available in the special deposit
144		-	are insufficient to cover an obligation to pay a beneficiary, a beneficiary may elect to be paid
145		-	the funds that are available or, if there is more than one beneficiary, a pro rata share of the
146		-	funds available. Payment to the beneficiary making the election under this subsection
147		-	discharges the bank's or credit union's obligation to pay a beneficiary and does not constitute
148		-	an accord and satisfaction with respect to another person obligated to the beneficiary.
149		-	4.Unless the account agreement provides otherwise, the obligation of the bank or credit union
150		-	obligated to pay a beneficiary is immediately due and payable.
151		-	5.The bank or credit union may discharge the bank's or credit union's obligation under this
152		-	section by:
	270	+	1.Unless the account agreement provides otherwise, the bank or credit union is
	271	+	obligated to pay a beneficiary if there are sufficient actually and finally collected funds
	272	+	in the balance of the special deposit.
	273	+	2.Except as provided in subsection 3, the obligation to pay the beneficiary is excused if
	274	+	the funds available in the special deposit are insufficient to cover the payment.
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	308	+	3.Unless the account agreement provides otherwise, if the funds available in the special
	309	+	deposit are insufficient to cover an obligation to pay a beneficiary, a beneficiary may
	310	+	elect to be paid the funds that are available or, if there is more than one beneficiary, a
	311	+	pro rata share of the funds available. Payment to the beneficiary making the election
	312	+	under this subsection discharges the bank's or credit union's obligation to pay a
	313	+	beneficiary and does not constitute an accord and satisfaction with respect to another
	314	+	person obligated to the beneficiary.
	315	+	4.Unless the account agreement provides otherwise, the obligation of the bank or credit
	316	+	union obligated to pay a beneficiary is immediately due and payable.
	317	+	5.The bank or credit union may discharge the bank's or credit union's obligation under
	318	+	this section by:
153	319		a.Crediting another transaction account of the beneficiary; or
154	320		b.Taking other action that:
155		-	(1)Is allowed under the account agreement for the bank or credit union to ~~obtain a~~
156		-	discharge; or
	321	+	(1)Is allowed under the account agreement for the bank or credit union to
	322	+	obtain a discharge; or
157	323		(2)Otherwise would constitute a discharge under law.
158	324		6.If the bank or credit union obligated to pay a beneficiary has incurred an obligation to
159		-	discharge the obligation of another person, the obligation of the other person is discharged if S. B. NO. 2123 - PAGE 5
160		-	action by the bank or credit union under subsection 5 would constitute a discharge of the
161		-	obligation of the other person under law that determines whether an obligation is satisfied.
	325	+	discharge the obligation of another person, the obligation of the other person is
	326	+	discharged if action by the bank or credit union under subsection 5 would constitute a
	327	+	discharge of the obligation of the other person under law that determines whether an
	328	+	obligation is satisfied.
162	329		6 - 08.6 - 07. Property interest of depositor or beneficiary.
163		-	1.A depositor or a beneficiary does not have a property interest in the special deposit itself.
164		-	2.The only property interest with respect to a special deposit is the right to receive payment if
165		-	the bank or credit union is obligated to pay a beneficiary. Any property interest under this
166		-	subsection is determined under other law.
	330	+	1.A depositor or a beneficiary does not have a property interest in the special deposit
	331	+	itself.
	332	+	2.The only property interest with respect to a special deposit is the right to receive
	333	+	payment if the bank or credit union is obligated to pay a beneficiary. Any property
	334	+	interest under this subsection is determined under other law.
167	335		6 - 08.6 - 08. When creditor process is enforceable against bank or credit union.
168		-	1.Subject to subsection 2, creditor process with respect to a special deposit is not enforceable
169		-	against the bank or credit union holding the special deposit.
170		-	2.Creditor process is enforceable against the bank or credit union holding a special deposit with
171		-	respect to an amount the bank or credit union is obligated to pay a beneficiary or a depositor if
172		-	the process:
	336	+	1.Subject to subsection 2, creditor process with respect to a special deposit is not
	337	+	enforceable against the bank or credit union holding the special deposit.
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	370	+	2.Creditor process is enforceable against the bank or credit union holding a special
	371	+	deposit with respect to an amount the bank or credit union is obligated to pay a
	372	+	beneficiary or a depositor if the process:
173	373		a.Is served on the bank or credit union;
174		-	b.Provides sufficient information to allow the bank or credit union to identify the depositor or
175		-	the beneficiary from the bank's or credit union's books and records; and
	374	+	b.Provides sufficient information to allow the bank or credit union to identify the
	375	+	depositor or the beneficiary from the bank's or credit union's books and records;
	376	+	and
176	377		c.Gives the bank or credit union a reasonable opportunity to act on the process.
177		-	3.Creditor process served on a bank or credit union before it is enforceable against the ~~bank or~~
178		-	credit union under subsection 2 does not create a right of the creditor against ~~the bank or~~
179		-	credit union or a duty of the bank or credit union to the creditor. Other law ~~determines whether~~
180		-	creditor process creates a lien enforceable against the beneficiary ~~on a contingent interest of a~~
181		-	beneficiary, including a depositor as a beneficiary, even if ~~not enforceable against the bank or~~
182		-	credit union.
	378	+	3.Creditor process served on a bank or credit union before it is enforceable against the
	379	+	bank or credit union under subsection 2 does not create a right of the creditor against
	380	+	the bank or credit union or a duty of the bank or credit union to the creditor. Other law
	381	+	determines whether creditor process creates a lien enforceable against the beneficiary
	382	+	on a contingent interest of a beneficiary, including a depositor as a beneficiary, even if
	383	+	not enforceable against the bank or credit union.
183	384		6 - 08.6 - 09. Injunction or similar relief.
184		-	A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank or ~~credit~~
185		-	union from paying a depositor or beneficiary only if payment would constitute a material ~~fraud or~~
186		-	facilitate a material fraud with respect to a special deposit.
	385	+	A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank or
	386	+	credit union from paying a depositor or beneficiary only if payment would constitute a material
	387	+	fraud or facilitate a material fraud with respect to a special deposit.
187	388		6 - 08.6 - 10. Recoupment or set off.
188		-	1.Except as provided in subsection 2 or 3, a bank or credit union may not exercise a ~~right of~~
189		-	recoupment or set off against a special deposit.
	389	+	1.Except as provided in subsection 2 or 3, a bank or credit union may not exercise a
	390	+	right of recoupment or set off against a special deposit.
190	391		2.An account agreement may allow the bank or credit union to debit the special deposit:
191		-	a.When the bank or credit union becomes obligated to pay a beneficiary, in an amount that
192		-	does not exceed the amount necessary to discharge the obligation;
193		-	b.For a fee assessed by the bank or credit union that relates to an overdraft in the special
194		-	deposit account;
195		-	c.For costs incurred by the bank or credit union that relate directly to the special deposit; or
196		-	d.To reverse an earlier credit posted by the bank or credit union to the balance of the
197		-	special deposit account, if the reversal occurs under an event or circumstance warranted
198		-	under other law governing mistake and restitution. S. B. NO. 2123 - PAGE 6
199		-	3.The bank or credit union holding a special deposit may exercise a right of recoupment or set
200		-	off against an obligation to pay a beneficiary, even if the bank or credit union funds payment
201		-	from the special deposit.
	392	+	a.When the bank or credit union becomes obligated to pay a beneficiary, in an
	393	+	amount that does not exceed the amount necessary to discharge the obligation;
	394	+	b.For a fee assessed by the bank or credit union that relates to an overdraft in the
	395	+	special deposit account;
	396	+	c.For costs incurred by the bank or credit union that relate directly to the special
	397	+	deposit; or
	398	+	d.To reverse an earlier credit posted by the bank or credit union to the balance of
	399	+	the special deposit account, if the reversal occurs under an event or
	400	+	circumstance warranted under other law governing mistake and restitution.
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	434	+	3.The bank or credit union holding a special deposit may exercise a right of recoupment
	435	+	or set off against an obligation to pay a beneficiary, even if the bank or credit union
	436	+	funds payment from the special deposit.
202	437		6 - 08.6 - 11. Duties and liability of bank or credit union.
203		-	1.A bank or credit union does not have a fiduciary duty to any person with respect to a ~~special~~
204		-	deposit.
	438	+	1.A bank or credit union does not have a fiduciary duty to any person with respect to a
	439	+	special deposit.
205	440		2.When the bank or credit union holding a special deposit becomes obligated to pay a
206	441		beneficiary, a debtor-creditor relationship arises between the bank or credit union and
207	442		beneficiary.
208		-	3.The bank or credit union holding a special deposit has a duty to a beneficiary to ~~comply with~~
209		-	the account agreement and this chapter.
	443	+	3.The bank or credit union holding a special deposit has a duty to a beneficiary to
	444	+	comply with the account agreement and this chapter.
210	445		4.If the bank or credit union holding a special deposit does not comply with the account
211		-	agreement or this chapter, the bank or credit union is liable to a depositor or beneficiary only
212		-	for damages proximately caused by the noncompliance. Except as provided by other law, the
213		-	bank or credit union is not liable for consequential, special, or exemplary damages.
	446	+	agreement or this chapter, the bank or credit union is liable to a depositor or
	447	+	beneficiary only for damages proximately caused by the noncompliance. Except as
	448	+	provided by other law, the bank or credit union is not liable for consequential, special,
	449	+	or exemplary damages.
214	450		5.The bank or credit union holding a special deposit may rely on records presented in
215		-	compliance with the account agreement to determine whether the bank or credit union is
216		-	obligated to pay a beneficiary.
217		-	6.If the account agreement requires payment on presentation of a record, the bank or credit
218		-	union shall determine within a reasonable time whether the record is sufficient to require
219		-	payment. If the agreement requires action by the bank or credit union on presentation of a
220		-	record, the bank or credit union is not liable for relying in good faith on the genuineness of the
221		-	record if the record appears on its face to be genuine.
222		-	7.Unless the account agreement provides otherwise, the bank or credit union is not required to
223		-	determine whether a permissible purpose stated in the agreement continues to exist.
	451	+	compliance with the account agreement to determine whether the bank or credit union
	452	+	is obligated to pay a beneficiary.
	453	+	6.If the account agreement requires payment on presentation of a record, the bank or
	454	+	credit union shall determine within a reasonable time whether the record is sufficient to
	455	+	require payment. If the agreement requires action by the bank or credit union on
	456	+	presentation of a record, the bank or credit union is not liable for relying in good faith
	457	+	on the genuineness of the record if the record appears on its face to be genuine.
	458	+	7.Unless the account agreement provides otherwise, the bank or credit union is not
	459	+	required to determine whether a permissible purpose stated in the agreement
	460	+	continues to exist.
224	461		6 - 08.6 - 12. Term and termination.
225		-	1.Unless otherwise provided in the account agreement, a special deposit terminates five years
226		-	after the date the special deposit was first funded.
227		-	2.Unless otherwise provided in the account agreement, if the bank or credit union cannot
228		-	identify or locate a beneficiary entitled to payment when the special deposit is terminated, and
229		-	a balance remains in the special deposit, the bank or credit union shall pay the balance to the
230		-	depositor as a beneficiary.
231		-	3.A bank or credit union that pays the remaining balance as provided under subsection 2 has no
232		-	further obligation with respect to the special deposit.
	462	+	1.Unless otherwise provided in the account agreement, a special deposit terminates five
	463	+	years after the date the special deposit was first funded.
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	496	+	2.Unless otherwise provided in the account agreement, if the bank or credit union
	497	+	cannot identify or locate a beneficiary entitled to payment when the special deposit is
	498	+	terminated, and a balance remains in the special deposit, the bank or credit union
	499	+	shall pay the balance to the depositor as a beneficiary.
	500	+	3.A bank or credit union that pays the remaining balance as provided under subsection 2
	501	+	has no further obligation with respect to the special deposit.
233	502		6 - 08.6 - 13. Principles of law and equity.
234		-	Title 41, consumer protection law, law governing deposits generally, law related to escheat and
235		-	abandoned or unclaimed property, and the principles of law and equity, including law related to capacity
236		-	to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, and
237		-	bankruptcy, supplement this chapter except to the extent inconsistent with this chapter.
	503	+	Title 41, consumer protection law, law governing deposits generally, law related to escheat
	504	+	and abandoned or unclaimed property, and the principles of law and equity, including law
	505	+	related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress,
	506	+	coercion, mistake, and bankruptcy, supplement this chapter except to the extent inconsistent
	507	+	with this chapter.
238	508		6 - 08.6 - 14. Uniformity of application and construction.
239		-	In applying and construing this chapter, a court shall consider the promotion of uniformity of ~~the law~~
240		-	among the states that enact it. ~~S. B. NO. 2123 - PAGE 7~~
	509	+	In applying and construing this chapter, a court shall consider the promotion of uniformity of
	510	+	the law among the states that enact it.
241	511		SECTION 2. APPLICATION. This Act applies to:
242		-	1.A special deposit made under an account agreement executed after July 31, 2025; and
	512	+	1.A special deposit made under an account agreement executed after July 31, 2025;
	513	+	and
243	514		2.A deposit made under an agreement executed before August 1, 2025, if:
244		-	a.All parties entitled to amend the agreement agree to make the deposit a special deposit
245		-	governed by chapter 6-08.6; and
246		-	b.The special deposit referenced in the amended agreement satisfies section 6-08.6-04. S. B. NO. 2123 - PAGE 8
247		-	____________________________ ____________________________
248		-	President of the Senate Speaker of the House
249		-	____________________________ ____________________________
250		-	Secretary of the Senate Chief Clerk of the House
251		-	This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
252		-	Dakota and is known on the records of that body as Senate Bill No. 2123.
253		-	Senate Vote:Yeas 47 Nays 0 Absent 0
254		-	House Vote: Yeas 88 Nays 0 Absent 6
255		-	____________________________
256		-	Secretary of the Senate
257		-	Received by the Governor at ________M. on _____________________________________, 2025.
258		-	Approved at ________M. on __________________________________________________, 2025.
259		-	____________________________
260		-	Governor
261		-	Filed in this office this ___________day of _______________________________________, 2025,
262		-	at ________ o’clock ________M.
263		-	____________________________
264		-	Secretary of State
	515	+	a.All parties entitled to amend the agreement agree to make the deposit a special
	516	+	deposit governed by chapter 6-08.6; and
	517	+	b.The special deposit referenced in the amended agreement satisfies section
	518	+	6-08.6-04.
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