All Roll Calls
Yes: 226 • No: 0
NebraskaLB231109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the Uniform Special Deposits Act
Sponsored By: Bob Hallstrom
Signed by Governor
Banking, Commerce and Insurance Committee
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 2 benefits, 1 costs, 5 mixed.
When beneficiaries get paid
The bank must pay a beneficiary when enough funds are actually and finally collected, unless the account says otherwise. If money is short, a beneficiary can take the available funds now or a pro rata share. The bank may fulfill payment by crediting another beneficiary’s account or by other methods allowed by the agreement or law.
You can't waive key protections
The law blocks contract terms that remove core protections. You usually cannot change a beneficiary’s rights without clear permission. A change is allowed only if the agreement expressly permits it, the beneficiary is not a party and knows the terms and is not harmed, or the change was made in good faith when the beneficiary’s knowledge is unknown. Clauses that largely excuse liability or cut remedies do not override the Act.
No ownership and limited bank liability
You and other beneficiaries do not own the special deposit itself. You have only a right to be paid when the bank must pay. The bank is not a fiduciary. When it owes a payment, your relationship is debtor‑creditor. If the bank breaks the rules, it owes only direct damages it caused; extra or punitive damages apply only if other law allows them. The bank may rely on records submitted under the agreement and, unless the agreement says otherwise, does not have to recheck the deposit’s purpose.
Rules to set up special deposits
To count as a special deposit, the account must be under an agreement with a bank, name at least two beneficiaries (you can be one), use government‑authorized money, state a permissible purpose, and tie payment to a contingency. The deposit must keep serving a permissible purpose. If a bank or court finds it no longer does, the law’s protections stop for money added after that finding and the bank may end the account. The law covers new account agreements signed after its effective date. Older agreements are covered only if everyone who can amend agrees and the account meets these rules. Your agreement can choose this law even if there is no tie to Nebraska.
Shield from creditors and bank setoffs
Creditors generally cannot garnish or attach money in a special deposit. A creditor can reach funds only for amounts the bank already must pay, and only after proper service that identifies the person and gives the bank time to act. Courts can stop a payment only to prevent material fraud tied to the deposit. Banks cannot take money for other debts unless your agreement allows specific debits like paying a beneficiary, related fees or overdrafts, direct costs, or reversing a mistaken credit.
Special deposits end after five years
A special deposit ends five years after it is first funded, unless the account says otherwise. If the bank cannot find a beneficiary at that time and money remains, it must pay the balance to the depositor(s) named as beneficiaries. After that payment, the bank has no further duty for that deposit.
You can pick Nebraska courts
Parties to a special‑deposit account can choose Nebraska as the place to resolve disputes, even if no one or the deposit has ties to Nebraska. This can help those who prefer Nebraska courts, but it may raise travel or legal costs for others.
How this law fits with others
This law works with the Uniform Commercial Code, general deposit law, consumer‑protection rules, and unclaimed‑property rules unless they conflict. It does not change rights for deposits that are not special deposits. Fraudulent or otherwise voidable transfers remain voidable under other law. Courts aim for uniform results across states that adopt this law.
Sponsors & Cosponsors
Sponsor
Bob Hallstrom
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 31 • No: 0 • Other: 18
legislature vote • 3/6/2025
Final Reading
Yes: 48 • No: 0 • Other: 1
legislature vote • 2/19/2025
Vote
Yes: 31 • No: 0 • Other: 18
legislature vote • 2/5/2025
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 2/5/2025
Vote
Yes: 39 • No: 0 • Other: 10
Actions Timeline
Approved by Governor on March 11, 2025
3/12/2025legislatureDispensing of reading at large approved
3/6/2025legislaturePassed on Final Reading 48-0-1
3/6/2025legislaturePresident/Speaker signed
3/6/2025legislaturePresented to Governor on March 6, 2025
3/6/2025legislaturePlaced on Final Reading
2/24/2025legislatureHallstrom AM216 adopted
2/19/2025legislatureAdvanced to Enrollment and Review for Engrossment
2/19/2025legislatureHallstrom AM216 filed
2/13/2025legislaturePlaced on Select File
2/11/2025legislatureBanking, Commerce and Insurance AM30 adopted
2/5/2025legislatureAdvanced to Enrollment and Review Initial
2/5/2025legislaturePlaced on General File with AM30
1/30/2025legislatureBanking, Commerce and Insurance AM30 filed
1/30/2025legislatureReferred to Banking, Commerce and Insurance Committee
1/16/2025legislatureNotice of hearing for January 28, 2025
1/16/2025legislatureDate of introduction
1/14/2025legislature
Bill Text
Introduced
3/12/2025
Enrolled / Slip Law
Final / Enacted