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SENATE FLOOR VERSION
February 19, 2024
SENATE BILL NO. 1819 By: Hall
An Act relating to banking; creating the Uniform
Special Deposits Act; pro viding short title; defining
terms; providing scope of act; allowing for
agreements to be amended under ce rtain circumstances;
specifying what makes a special deposit; permitting
termination of accounts under certain circumstances;
providing conditions under which a bank may
distribute funds to a beneficiary; specifying deposit
interests; requiring certain conditions for creditor
process; allowing relief; providing conditions for
recoupment by a bank; specifying fiduciary duties of
bank under this act; setting time frame and
provisions for termination of accounts; permitting
uniformity of implementation of act by law; providing
for codification; and providing an effective d ate.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910 of Title 6, unless there is
created a duplication in numbering, reads as follows:
This act shall be kn own and may be cited as the “Uniform Special
Deposits Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.1 of Title 6, unless there
is created a duplication in numbering, reads as follows:
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As used in this act:
1. “Account agreement” means an agreement that:
a. is in a record between a bank and one or more
depositors,
b. may have one or more beneficiaries as additional
parties, and
c. states the intention of the parties to establish a
special deposit pursuant to this act;
2. “Bank” means a person engaged in the business of banking
including, but not limited to, a savings bank, savings and loan
association, credit union, tru st company, or bank as defined in
Section 102 of Title 6 of the Oklahoma Statutes . Each branch or
separate office of a bank is a separate bank for the purpose of this
act;
3. “Beneficiary” means a person that:
a. is identified as a beneficiary in an account
agreement, or
b. if not identified as a beneficiary in an account
agreement, may be entitled to payment from a special
deposit:
(1) under the account agreement, or
(2) on termination of the special deposit;
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4. “Contingency” means an event or cir cumstance stated in an
account agreement th at is not certain to occur but shall oc cur
before the bank is obligated to pay a benefici ary;
5. “Creditor process” means attachment, garnishment, levy,
notice of lien, sequestration, or a similar process issued by or on
behalf of a creditor or other claimant;
6. “Depositor” means a person that establishes or funds a
special deposit;
7. “Good faith” means honesty in fact and observance of
reasonable commercial standards of fair dealing;
8. “Knowledge of a fact” means:
a. with respect to a beneficiary, actual knowledge of the
fact, or
b. with respect to a bank holding a special deposit:
(1) if the bank:
(a) has established a reasonable routine for
communicating material information to an
individual to whom the bank has assigned
responsibility for the special deposit, and
(b) maintains reasonable compliance with the
routine, actual knowl edge of the fact by
that individual, or
(2) if the bank has not establishe d and maintained
reasonable compliance with a routine de scribed in
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division (1) of this subparagrap h or otherwise
exercised due diligence, implied knowledge of the
fact that would have come to the attention of an
individual to whom the bank has assigned
responsibility for the special deposit;
9. “Obligated to pay a beneficiary” means a beneficiary is
entitled under the account agreement to receive from the bank a
payment when:
a. a contingency has occurred, and
b. the bank has knowledge the contingency has occurred.
An “obligation to pay a beneficiary” shall mean the same;
10. “Permissible purpose” means a governmental, regulatory,
commercial, charitable, or testamentary objective of the parties
stated in an account agreement. The term includes an objective to:
a. hold funds:
(1) in escrow, including for a p urchase and sale,
lease, buyback, or other transaction,
(2) as a security deposit of a tenant,
(3) that may be distributed to a person as
remuneration, retirement, o r other benefit, or
compensation under a judg ment, consent decree,
court order, or other decision of a tribunal, or
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(4) for distribution to a defined class of persons
after identification of the class members and
their interest in the funds,
b. provide assurance with respect to an obligation
created by contract, such as ea rnest money to ensure a
transaction closes,
c. settle an obligation that arises in the o peration of a
payment system, securities settlement system, or other
financial market infrastructure,
d. provide assurance with respect to an obligation that
arises in the operation of a payment s ystem,
securities settlement system, or other financial
market infrastructure, or
e. hold margin, other cash collateral, or funds that
support the orderly functioning of financial market
infrastructure or the performance of an obligation
with respect to the infrastructure ;
11. “Person” means an individual, estate, business, or
nonprofit entity, government or governmental subdivision, agency, or
instrumentality, or other leg al entity. The term may include a
protected series, however denominated, of an entity if the protected
series is establishe d under law that limits, or limits if con ditions
specified under law are satisfied, the ability of a creditor of the
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entity or of any other protected series of the enti ty to satisfy a
claim from assets of the protected series ;
12. “Record” means information:
a. inscribed on a tangible medium, or
b. stored in an electronic or other mediu m and
retrievable in perceivable form;
13. “Special deposit” means a deposit as specified in Section 5
of this act; and
14. “State” means a state of the United States, the District of
Columbia, Puerto Rico, the U.S. Virgin Islands, or any other
territory or possession subject to the jurisdiction of the United
States, including an agency or instrumentality o f the state.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.2 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. This act shall apply to a special deposit under an account
agreement that states the intention of the pa rties to establish a
special deposit governed by this act, regardless of whether a party
to the account agreement or a transaction related to the special
deposit, or the special deposit it self, has a reasonable relation to
this state.
B. The parties to an account agreement may choose a forum in
this state for settling a dispute arising out of the special
deposit, regardless of whether a party to the account agreement or a
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transaction related to the special deposit, or the special deposit
itself, has a reasonable relation to this state.
C. This shall not affect:
1. A right or obligation relating to a deposit o ther than a
special deposit under this act ; or
2. The voidability of a deposit or transfer that is fraudulent
or voidable under other law.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.3 of Title 6, unless there
is created a duplication in numbering , reads as follows:
A. The effect of Sections 2 through 6, 8 through 11, and
Section 13 of this act may not be v aried by agreement, e xcept as
provided in those sections. Subject to subsec tion B of this
section, the effects of Section s 7, 12, and 13 of this act may be
varied by agreement.
B. A provision in an account agreement or other record that
substantially excuses liability or substantially limits remedies for
failure to perform an obligation under this act is not sufficient to
vary the effect of a provision of this act.
C. If a beneficiary is a party to an account agreement, the
bank and the depositor may amend the agreement with out the consent
of the beneficiary only if the agreemen t expressly permits the
amendment.
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D. If a beneficiary is not a party to an agre ement and the bank
and the depositor know the beneficiary has knowledge of the
agreement’s terms, the bank and the dep ositor may amend the
agreement without the consent of the beneficiary only if the
amendment does not adversely and materially affect a payment right
of the beneficiary.
E. If a beneficiary is not a party t o an account agreement and
the bank and the depositor do not know whether the beneficiary has
knowledge of the agreement’s terms, the bank and the depositor may
amend the agreement without the consent of the beneficiary only if
the amendment is made in good faith.
SECTION 5. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 910.4 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A deposit is a special deposit if it is:
1. A deposit of funds in a bank under an account agreement;
2. For the benefit of a t least two (2) beneficiaries, one or
more of whom may be a depositor;
3. Denominated in a medium of exch ange that is currently
authorized or adopted by a domestic or foreign government;
4. For a permissible purpose stated in the account agreement;
and
5. Subject to a contingency .
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SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.5 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. A special deposit shall serve at least one pe rmissible
purpose stated in the account agreement from the time the special
deposit is created in the account agreement until termination of the
special deposit.
B. If, before termination of a special deposit, the bank or a
court determined the special de posit no longer satisfies subsection
A of this section, Sections 8 through 11 of this act cease to apply
to any funds deposited in the special de posit after the special
deposit ceases to satisfy subsection A of this section.
C. If, before termination of a special deposit, the bank
determines the special deposit no longer satisfies subsection A of
this section, the bank may take action i t believes is necessary
under the circumstances, including terminating the special deposit.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.6 of Title 6, unless there
is created a duplication in numbe ring, reads as follows:
A. Unless the account agreement provides otherwise, the bank is
obligated to pay a beneficiary if there are sufficient a ctually and
finally collected funds in the balance of the special deposit.
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B. Except as provided in s ubsection C of this section, the
obligation to pay the beneficiary is excused if the funds available
in the special deposit are insufficient to cover such payment.
C. Unless the account agreement provides otherwise, if the
funds available in the special deposit ar e insufficient to cover an
obligation to pay a beneficiary , a beneficiary may elect to be paid
the funds that are available or, if there is more than one
beneficiary, a pro rata share of the funds available. Payment to
the beneficiary making the election under this subsection discharges
the bank’s obligation to pay a b eneficiary and does not constitute
an accord and satisfaction with respect to another person obligated
to the beneficiary.
D. Unless the account agreement provides otherwise, the
obligation of the bank obligated to pay a beneficiary is immediately
due and payable.
E. The bank may discharge its o bligation under this section by :
1. Crediting another transa ction account of the beneficiary; or
2. Taking other action that:
a. is permitted under t he account agreement for the bank
to obtain a discharge, or
b. otherwise would constitute a discharge under law.
F. If the bank obligated to pay a beneficiary has incurred an
obligation to discharge that obligation of another person, the
obligation of the other person is discharged if action by the bank
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under subsection E of this section would constitute a discharge of
the obligation of the other person under law that determined whether
an obligation is satisfied.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.7 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. Neither a depositor nor a beneficiary has a property
interest in a special de posit.
B. Any property interest with respect to a special de posit is
only in the right to receive payment if the bank is obligated to pay
a beneficiary and not in the spe cial deposit itself. Any pro perty
interest under this subsection is determined under other law.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.8 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. Subject to subsection B of this section, creditor process
with respect to a special deposit is not enforceable against the
bank holding the special deposit.
B. Creditor process is enforceable again st the bank holding a
special deposit with respect to an amount the bank is obligated to
pay a beneficiary or a depositor if the process:
1. Is served on the bank;
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2. Provides sufficient information to permit the bank to
identify the depositor or the beneficiary from the bank ’s book and
records; and
3. Gives the bank a reasonable opportunity to act on the
process.
C. Creditor process served on a bank before it is enforceab le
against the bank under s ubsection B of this section does not create
a right of the creditor against the bank or a duty of the bank to
the creditor. Other law determines whether creditor process creates
a lien enforceable against the beneficiary on a contingent interest
of a beneficiary, including a depositor as a beneficiary, ev en if
not enforceable against the bank.
SECTION 10. NEW LAW A new section of law to be c odified
in the Oklahoma Statutes as Section 910.9 of Title 6, unless there
is created a duplication in numb ering, reads as follows:
A court may enjoin, or grant similar relief that would have the
effect of enjoining, a bank from paying a depositor or beneficiary
only if payment would constitute a ma terial fraud or facilit ate a
material fraud with respect to a special deposit.
SECTION 11. NEW LAW A new se ction of law to be codified
in the Oklahoma Statutes as Section 910.10 of Title 6, unless there
is created a duplication in numbering, reads as follows:
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A. Except as provided in subsection B or C of this section, a
bank may not exercise a right of r ecoupment or set off against a
special deposit.
B. An account agreement may authorize the bank to debit the
special deposit:
1. When the bank becomes obligated to pay a beneficiary, in an
amount that does not e xceed the amount necessary to discharge the
obligation;
2. For a fee assessed by the bank that relates to an overdraft
in the special deposit;
3. For costs incurred by the bank that relate dire ctly to the
special deposit; or
4. To reverse an earlier credit posted by the bank to the
balance of the special deposit , if the reversal occurs under an
event or circumstance warranted under other law of this s tate
governing mistake and restitution.
C. The bank holding a s pecial deposit may exercise a right of
recoupment or set off against an obligation to pay a bene ficiary,
even if the bank funds payment from the special deposit.
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.11 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. A bank does not have a f iduciary duty to any person with
respect to a special deposit.
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B. When the bank holding a special deposit becomes obl igated to
pay a beneficiary, a debtor-creditor relationship arises between the
bank and beneficiary.
C. The bank holding a special deposit has a duty to a
beneficiary to comply with the account agreement and this act.
D. If the bank holding a special deposit does not com ply with
the account agreement or th is act, the bank is l iable to a depositor
or beneficiary only for damages proximately caused by the
noncompliance. Except as provided by other law of this state, the
bank is not liable for consequential , special, or punitive d amages.
E. The bank holding a special d eposit may rely on records
presented in compliance with the account agreement to determine
whether the bank is obligated to pay a beneficiary.
F. If the account agreement requires payment on presentation of
a record, the bank shall determine within a reasonable amount of
time whether the rec ord is sufficient to require payment. If the
agreement requires action by the bank on presentation of a record,
the bank is not liable for relying in good faith on the genuineness
of the record if the record appears on its face to be genuine.
G. Unless the account agreement pro vides otherwise, the bank is
not required to determine whether a permissible purpose s tated in
the agreement continues to exist.
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SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.12 of Title 6, unless there
is created a duplication in numbering, reads as follows:
A. Unless otherwise provided in the account agreement, a
special deposit terminates five (5) years after the date the special
deposit was first fu nded.
B. Unless otherwise provided in the account agreement, if the
bank cannot identify or locate a beneficiary entitled to payment
when the special deposit is te rminated, and a balance remains in the
special deposit, the bank shall pay the b alance to the deposi tor or
depositors as a beneficiary o r beneficiaries.
C. A bank that pays the r emaining balance as p rovided under
subsection B of this section has no furth er obligation with respect
to the special deposit.
SECTION 14. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 910.13 of Title 6, unless there
is created a duplication in numbering, reads as follows:
Title 12A of the Oklahoma Statutes, consumer protection law, law
governing deposits generally, law related to escheat and abandoned
or unclaimed property, and the principles of law and equity ,
including law related to capacity to contract, principle and agent,
estoppel, fraud, misrepre sentation, duress, coercion, mistake, and
bankruptcy, supplement this act except to the extent inconsistent
with this act.
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SECTION 15. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 910.14 of Title 6, unless there
is created a duplica tion in numbering, reads as follows:
In applying and construing this uniform act, a court shall
consider the promotion of uniformity of t he law among jurisdictions
that enact it.
SECTION 16. This act shall become effective November 1 , 2024.
COMMITTEE REPORT BY: COMMITTEE ON BUSINES S AND COMMERCE
February 19, 2024 - DO PASS