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Rhode IslandH72652026 Regular SessionHouse

AN ACT RELATING TO FINANCIAL INSTITUTIONS -- THE RHODE ISLAND SPECIAL DEPOSITS ACT .

Sponsored By: Jason Knight (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Five-year end date for deposits

A special deposit ends five years after it is first funded, unless the agreement says otherwise. If the bank cannot identify or find an entitled beneficiary when it ends and money is left, the bank must pay the balance to the depositor or depositors. After that payment, the bank has no further duty for that deposit.

New contract rules and bank liability

Account contracts cannot remove the core protections in this law. If you are a party to the agreement, changes without your consent are allowed only if the agreement expressly allows it. If you are not a party but know the terms, changes cannot materially and adversely cut your payment right. If it is unknown whether you know the terms, changes must be made in good faith. Banks do not owe a fiduciary duty just by holding a special deposit, and are liable only for harms they cause by not following the agreement. They are not liable for punitive or special damages unless other Rhode Island law allows them.

When beneficiaries get paid and protected

The bank must pay a beneficiary when there are sufficient finally collected funds, unless the agreement says otherwise. If funds are short, you may take what is available or a pro rata share when there are multiple beneficiaries. Creditors cannot enforce garnishments against the bank unless they serve it, give enough identifying info, and allow time to act. Courts can block payment only to prevent material fraud. Banks usually cannot set off the deposit against other debts, except for agreed fees, costs, or amounts needed to make a required payment. You and the depositor do not own the deposit itself; your right is to be paid when the bank is obligated.

Rules for creating a special deposit

The law defines a special deposit and what it must include. It must name at least two beneficiaries, state a permissible purpose, and list a contingency. Permissible purposes include escrow, tenant security deposits, payouts to a defined group, contract assurance, settlement systems, and margin or collateral. Parties can choose Rhode Island law and courts for disputes. The rules apply to agreements signed after the law took effect; older accounts are covered only if everyone who can amend agrees and the account then meets these rules.

Sponsors & Cosponsors

Sponsor

  • Jason Knight

    Democratic • House

Cosponsors

  • Matthew S. Dawson

    Democratic • House

  • Carol Hagan McEntee

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 105 • No: 0

Senate vote • 6/9/2026

FINANCIAL INSTITUTIONS -- RHODE ISLAND SPECIAL DEPOSITS ACT In Concurrence Passage

Yes: 36 • No: 0

House vote • 3/19/2026

RI SPECIAL DEPOSITS ACT PASSAGE

Yes: 69 • No: 0

Actions Timeline

  1. Signed by Governor — Chapter 202

    6/19/2026Governor

  2. Transmitted to Governor

    6/16/2026Governor

  3. Senate passed in concurrence

    6/9/2026Senate

  4. Placed on Senate Calendar (06/09/2026)

    6/5/2026Senate

  5. Committee recommends passage in concurrence

    5/5/2026

  6. Scheduled for consideration (05/05/2026)

    5/1/2026

  7. Referred to Senate Commerce

    3/27/2026Senate

  8. House read and passed

    3/19/2026House

  9. Placed on House Calendar (03/19/2026)

    3/13/2026House

  10. Committee recommends passage

    3/12/2026

  11. Scheduled for consideration (03/12/2026)

    3/6/2026

  12. Committee recommended measure be held for further study

    1/27/2026

  13. Scheduled for hearing and/or consideration (01/27/2026)

    1/23/2026

  14. Introduced, referred to House Corporations

    1/23/2026House

Bill Text

  • H7265 - As Introduced

    1/23/2026

    HTMLPDF

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