All Roll Calls
Yes: 135 • No: 0
North DakotaSB 21232025 Regular SessionSenateWALLET
AN ACT to create and enact chapter 6-08.6 of the North Dakota Century Code, relating to the Uniform Special Deposits Act; and to provide for application.
Sponsored By: Senate Industry and Business
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 0 costs, 5 mixed.
Protections from creditors and bank setoffs
Creditors cannot enforce against a bank holding a special deposit unless the bank already owes a payment and the papers are properly served and identify the person. Courts can stop payment only to prevent material fraud. Banks generally cannot take or offset money from a special deposit, except narrow debits the agreement allows, like amounts needed to make a payment, overdraft fees tied to the deposit, direct costs, or reversing a mistaken credit. Effective August 1, 2025.
Bank duties and limited liability
A bank holding a special deposit does not have a fiduciary duty. When payment is due, the relationship is debtor–creditor, and the bank must follow the account agreement and this law. Liability is limited to direct damages from noncompliance; no special, consequential, or punitive damages unless other law allows. The bank may rely on records and must decide within a reasonable time if a presented record requires payment. The bank usually does not have to monitor whether the permissible purpose still exists. Effective August 1, 2025.
Five-year default end for deposits
A special deposit ends five years after it is first funded, unless the agreement sets a different term. If no beneficiary can be identified at the end and money remains, the bank pays the balance to the depositor as a beneficiary and then has no further duty. Effective August 1, 2025.
Rules to set up special deposits
The law creates the Uniform Special Deposits Act. An account is a special deposit only if it meets five tests: deposit at a bank or credit union, at least two beneficiaries, government‑authorized currency, a stated permissible purpose, and a named event or condition. The permissible purpose must continue until the deposit ends; if it stops, protections end for funds added after that time and the bank may act or end the account. Some core rules cannot be changed by contract. Amendments without a beneficiary’s consent are limited and must follow the consent and good‑faith rules. Parties can state that North Dakota law and courts govern the account. Effective August 1, 2025.
When and how beneficiaries get paid
The bank must pay a beneficiary when there are enough finally collected funds, unless the agreement says otherwise. Payment is due right away and can be made by crediting another account or other allowed methods. If money is short, a beneficiary can take the available amount or a pro rata share. Depositors and beneficiaries do not own the deposit itself; they only have a right to payment when due. Effective August 1, 2025.
When the new rules apply
The law applies to account agreements signed after July 31, 2025. Older agreements can opt in only if everyone with amendment power agrees and the deposit meets the special‑deposit definition. Effective August 1, 2025.
Sponsors & Cosponsors
Sponsor
Senate Industry and Business
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/14/2025
Second reading, passed, yeas 88 nays 0
Yes: 88 • No: 0
Senate vote • 1/16/2025
Second reading, passed, yeas 47 nays 0
Yes: 47 • No: 0
Actions Timeline
Filed with Secretary Of State 03/20
3/24/2025HouseSigned by Governor 03/20
3/21/2025SenateSent to Governor
3/19/2025SenateSigned by President
3/19/2025SenateSigned by Speaker
3/19/2025HouseReturned to Senate
3/17/2025SenateSecond reading, passed, yeas 88 nays 0
3/14/2025HouseReported back, do pass, place on calendar 10 0 4
3/13/2025HouseCommittee Hearing 03:45
3/12/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
2/13/2025HouseReceived from Senate
1/17/2025HouseSecond reading, passed, yeas 47 nays 0
1/16/2025SenateReported back, do pass, place on calendar 5 0 0
1/15/2025SenateCommittee Hearing 10:30
1/13/2025SenateIntroduced, first reading, referred Industry and Business Committee
1/7/2025Senate
Bill Text
Enrollment
INTRODUCED
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