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Rhode IslandS25192026 Regular SessionSenate

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

Sponsored By: Mark P. McKenney (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

New rules for special deposit accounts

The law sets clear rules for "special deposit" accounts at banks. An account qualifies only if the agreement says it is a special deposit, is for at least two beneficiaries, states a purpose, and is subject to a contingency. The deposit must be in lawful money. Parties can choose Rhode Island law and courts for disputes. Key protections in the chapter cannot be waived by private contract.

Five-year end date for special deposits

A special deposit ends five years after it was first funded, unless the account says otherwise. At the end, if a beneficiary cannot be found, the bank pays the balance to the depositor(s) and is done. Unclaimed property laws still apply. These rules apply to accounts made after the law took effect. Older accounts can opt in only if all who can amend agree and the account then meets the rules.

Protections from creditors and bank setoffs

Creditors cannot garnish or levy a special deposit unless the bank already must pay a named person and the bank gets proper notice. Creditor papers must be served on the bank, identify the right person, and allow time to act. A court can block payment only to stop material fraud. Banks generally cannot set off against a special deposit. The account can allow narrow debits, like authorized fees, overdrafts tied to the deposit, admin costs, or reversing a mistaken credit.

When beneficiaries get paid from deposits

Beneficiaries have a right to be paid, but do not own the deposit funds. When the stated event happens and the bank knows it, the bank must pay from collected funds unless the account says otherwise. If money is short, a beneficiary may take what is available or a pro‑rata share. The bank is not a fiduciary and must follow the account agreement. The bank’s liability is limited to direct losses, and it may rely on records that look genuine.

Sponsors & Cosponsors

Sponsor

  • Mark P. McKenney

    Democratic • Senate

Cosponsors

  • Jacob Bissaillon

    Democratic • Senate

  • Robert Britto

    Democratic • Senate

  • David P. Tikoian

    Democratic • Senate

  • Samuel D. Zurier

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 105 • No: 0

House vote • 6/8/2026

THE RI SPECIAL DEPOSITS ACT PASSAGE IN CONCURRENCE

Yes: 69 • No: 0

Senate vote • 5/5/2026

RELATING FINANCIAL INSTITUTIONS -- RI SPECIAL DEPOSITS ACT Passage

Yes: 36 • No: 0

Actions Timeline

  1. Signed by Governor — Chapter 203

    6/19/2026Governor

  2. Transmitted to Governor

    6/16/2026Governor

  3. House passed in concurrence

    6/8/2026House

  4. Placed on the House Consent Calendar (06/08/2026)

    6/5/2026House

  5. Committee recommends passage in concurrence

    6/2/2026

  6. Scheduled for consideration (06/02/2026)

    5/29/2026

  7. Referred to House Corporations

    5/6/2026House

  8. Senate read and passed

    5/5/2026Senate

  9. Placed on Senate Calendar (05/05/2026)

    4/29/2026Senate

  10. Committee recommends passage

    4/28/2026

  11. Scheduled for consideration (04/28/2026)

    4/24/2026

  12. Committee recommended measure be held for further study

    4/14/2026

  13. Scheduled for hearing and/or consideration (04/14/2026)

    4/10/2026

  14. Introduced, referred to Senate Commerce

    2/13/2026Senate

Bill Text

  • S2519 - As Introduced

    2/13/2026

    HTMLPDF

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