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

SB 2519 establishes the Rhode Island Special Deposits Act, creating standardized rules for certain types of bank deposits governed by written agreements between banks, depositors, and beneficiaries. It defines a "special deposit" as funds held under an account agreement for specific purposes like escrow, security deposits, or payment system settlements, with clear terms for when beneficiaries can receive funds. The act outlines requirements for account agreements, beneficiary rights, and bank obligations - such as paying only after a stated contingency occurs and the bank knows about it - while protecting these deposits from creditor claims. It directly affects banks, depositors (e.g., businesses or individuals setting up these deposits), and beneficiaries (e.g., tenants or settlement recipients), but does not change general banking rules or create new financial products.