Committee advances Uniform Special Deposits Act to clarify legal protections for designated funds
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Summary
The committee advanced a bill intended to clarify the legal status of special deposits so funds set aside are protected from creditor claims, bankruptcy inclusion and bank setoff; committee moved the draft report for legal review and approved by voice vote.
The Committee on Business and Economic Development voted to advance the Uniform Special Deposits Act of 2025, legislation the committee said is designed to reduce legal uncertainty that has depressed the use of special deposits.
The committee’s presentation described ambiguities the bill addresses, including criteria for creating special deposits, protections from premature creditor action and bankruptcy inclusion, exposure to creditor claims or injunctions, and limits on a bank’s right of setoff. Committee members noted the measure made only technical and conforming changes since introduction.
Chair Kenan McDuffie moved to draft the committee report in print with legal staff to make technical, editorial and conforming changes; the committee approved the motion by voice vote.
The transcript records no roll-call tally and no recorded amendments beyond the technical edits noted; the committee did not list further implementation steps in the meeting discussion.