One Hundred Ninth Legislature - First Session - 2025
Introducer€s Statement of Intent
LB231
€
Chairperson: Senator Mike Jacobson
Committee: Banking, Commerce and Insurance
Date of Hearing:
€
The following constitutes the reasons for this bill and the purposes which are sought to be
accomplished thereby:
LB 231 is the Uniform Special Deposits Act which establishes a framework for banks and
their
customers to utilize special deposits with greater certainty about how such deposits will be
treated under various circumstances. The Act is an opt in‚ statute that only applies if banks
and
their customers specify in their account agreement that they intend to be covered by it. The
Act
remedies four key uncertainties under current law: (1) the Act clarifies what a special deposit
is;
(2) it clarifies the treatment of a special deposit in the event of the bankruptcy of the
depositor;
(3) it clarifies the applicability of creditor processes on a special deposit; and (4) it clarifies
the
ability of a bank to exercise a set off or right of recoupment against a special deposit that is
unrelated to a payment to a beneficiary or the special deposit itself.
A special deposit under the LB 231 creates an assignable and pledgeable interest for a
beneficiary ƒ a definite and clear right to payment upon the occurrence of a contingency and
notice to the bank, where one may not otherwise exist. The Act creates a mechanism for
parties
to a commercial transaction to obtain a low cost and safe return on earnest money. It is
narrowly tailored to cure these four legal uncertainties and eliminate doubts so that parties
can utilize special deposits with greater confidence.
€
Principal Introducer:________________________________
Senator Bob Hallstrom
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