District of ColumbiaB26-0032Council Period 26 (2025-2026)HouseWALLET

Uniform Special Deposits Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Five-year end date for deposits

A special deposit ends five years after it was first funded unless the account says otherwise. If the bank cannot find an entitled beneficiary at that time, it must pay any remaining balance to the depositor(s) as beneficiaries. After that payment, the bank has no further duty for the deposit.

How banks pay and what is protected

The bank must pay a beneficiary when there are enough finally collected funds, unless the account says otherwise. If funds are short, a beneficiary can choose the available money or a pro rata share. Courts can block payment only to prevent material fraud, and creditors cannot garnish the deposit unless they properly serve the bank and the bank already owes payment. Banks generally cannot set off this money, except for narrow, agreed debits like fees, direct costs, or when funding a required payment. Holding the deposit does not make the bank a fiduciary, damages are limited to direct losses, and no one owns the deposit itself—only a right to payment when due.

Who qualifies for special deposit accounts

The law sets when an account is a special deposit. It must name at least two beneficiaries, use government‑backed money, state a permitted purpose, and be tied to a condition. Parties can choose D.C. as the forum, and these rules apply even without other ties to D.C. Key protections cannot be waived by contract, but a deposit must keep serving a permitted purpose or new funds lose these protections and the bank may end it. Older accounts are covered only if all parties amend them to opt in, and other D.C. laws fill gaps while courts aim for uniform rules across states.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 26 • No: 0

House vote • 11/4/2025

Final Reading, CC

Yes: 13 • No: 0

House vote • 10/21/2025

First Reading, CC