Uniform Special Deposits Act of 2025

ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-201
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA.
NOVEMBER 24, 2025
To amend Title28 of theDistrictofColumbia OfficialCode toenacttheUniform Special
DepositsActtoestablishclearcriteriaforwhatconstitutesa specialdeposit,topermit
partiesto opt-intotheprotectionsofthe actby agreement,toestablishtheconditions
underwhichabankisobligatedtopayaspecialdeposittoabeneficiary,toprovidethatneitherthedepositornorthebeneficiaryhave a propertyinterestina specialdeposit,to
clarifytheapplicabilityofthecreditorprocessonaspecialdeposit,toclarifythelegality
ofa bank’srighttoexerciseasetofforrighttorecoupmentagainstaspecialdepositthat
itsunrelatedtothespecialdeposit,toestablisha5-yeardefaulttermforspecialdeposits,
toprovidethatthisactshallbeappliedandconstruedinamannerthatpromotes
uniformityamongthejurisdictionsthatadoptit,andtoprovideforitsapplicationto
existingandfuturespecialdeposits,
BEIT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
actmay be citedas the“Uniform SpecialDepositsAct of 2025”.
Sec.2.Title28oftheDistrictofColumbiaOfficialCodeisamendedasfollows:
(a)Thetableofcontentsisamendedbyaddinganewchapterdesignationtoreadas
follows:
“29A.UniformSpecialDeposits.”.
(b)A newChapter29Aisaddedtoreadasfollows:
“CHAPTER29A.UNIFORMSPECIALDEPOSITS.
“Sec.
“28-2951,Definitions.
“28-2952.Scope;choiceoflaw;forum.
“28-2953.Variationbyagreementoramendment.
“28-2954,Requirementsforspecialdeposit.
“28-2955.Permissiblepurpose.
“28-2956,Paymenttobeneficiarybybank.
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ENROLLED ORIGINAL
«28.2957.Propertyinterestofdepositororbeneficiary
“28-2958,When creditorprocessenforceableagainstbank.
“28-2959.Injunctionor similarrelief.
“28-2960.Recoupment or setoff.
“28-2961.Dutiesand liabilityof bank.
“28-2962.Term and termination.
“28-2963.Principlesoflawandequity.
“28-2964.Uniformityof applicationand construction.
“28-2965.Transitionalprovision.
Ҥ 28-2951.Definitions.
“Forthepurposesofthischapter,theterm:
“(1)“Account agreement”means an agreementthat:
“(A)Isinarecordbetweenabankandoneormoredepositors;
“(B) May have one or more beneficiariesas additionalparties;and
“(C)Statestheintentionofthepartiestoestablisha specialdeposit
governedbythischapter.
“(2)“Bank”meansapersonengagedinthebusinessofbankingandincludesa
savingsbank,savingsandloanassociation,creditunion,andtrustcompany.Eachbranchor
separateofficeofa bankisaseparatebankforthepurposesofthischapter.
“G)“Beneficiary”meansapersonthat:
“(A) Isidentifiedas a beneficiaryinan accountagreement;or
“(B)Ifnotidentifiedasabeneficiaryinanaccountagreement,maybe
entitledtopaymentfromaspecialdeposit:
“()Undertheaccountagreement;or
“(ii)On terminationof thespecialdeposit.
“(4)“Contingency”meansaneventorcircumstancestatedinanaccount
agreementthatisnot certainto occurbutmust occur beforethebank isobligatedtopay a
beneficiary.
“(5)“Creditorprocess”means attachment,garnishment,levy,noticeof lien,
sequestration,or similarprocessissuedby or on behalfof a creditoror otherclaimant.
(6)“Depositor”meansapersonthatestablishesorfundsaspecialdeposit.
“(7)“Goodfaith”meanshonestyinfactandobservanceofreasonable
commercial standardsoffair dealing.
“(8)“Knowledge”ofa factmeans:
“(A)Withrespecttoabeneficiary,actualknowledgeofthefact;or
“(B)Withrespecttoabankholdingaspecialdeposit:
“(j)Actualknowledgeofthefactbyanindividual,ifthebank:
“(1)Has establisheda reasonableroutinefor
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ENROLLED ORIGINAL
communicating materialinformationtotheindividualtowhom thebank hasassigned
responsibilityforthespecialdeposit;and
“(I1)Maintainsreasonablecompliancewith theroutine;or
“(ii)Ifthebank hasnotestablishedand maintainedreasonable
compliancewitharoutinedescribedinsub-subparagraph(i)ofthissubparagraphorotherwise
exerciseddue diligence,impliedknowledge ofthefactthatwould have come totheattentionof
anindividualtowhomthebankhasassignedresponsibilityforthespecialdeposit.
“(9)“Obligatedtopayabeneficiary”meansabeneficiaryisentitledunderthe
accountagreementtoreceivefrom thebank a payment when:
*(A)A contingencyhasoccurred;and
“(B)Thebankhasknowledgethecontingencyhasoccurred.
(10)“Permissiblepurpose”meansagovernmental,regulatory,commercial,
charitable,ortestamentaryobjectiveofthepartiesstatedinan accountagreement.The term
includesan objectiveto:
“(A) Hold funds:
(i)Inescrow,includingforapurchaseandsale,lease,buyback,or
othertransaction;
“(ii)Asa securitydepositofa tenant;
“Gii)Thatmaybedistributedtoapersonasremuneration,
retirementorotherbenefit,orcompensationunderajudgment,consentdecree,courtorder,or
otherdecisionofa tribunal;or
“(iv)For distributiontoa definedclassof personsafter
identificationof theclassmembers and theirinterestinthefunds;
“(B)Provideassurancewithrespecttoanobligationcreatedbycontract,
such as earnestmoney to ensureatransactioncloses;
“(C)Settlean obligationthatarisesintheoperationofa paymentsystem,
securitiessettlementsystem,or otherfinancialmarketinfrastructure;
“(D)Provideassurancewithrespecttoanobligationthatarisesinthe
operationofa paymentsystem,securitiessettlementsystem,orotherfinancialmarket
infrastructure;or
“(E)Holdmargin,othercashcollateral,orfundsthatsupporttheorderly
functioningoffinancialmarketinfrastructureortheperformanceofanobligationwithrespectto
theinfrastructure.
“(11)“Person”means an individual,estate,businessornonprofitentity,
government or governmentalsubdivision,agency,orinstrumentality,orotherlegalentity.The
term includesa protectedseries,however denominated,of an entityifthe protectedseriesis
establishedunderlaw thatlimits,or limitsifconditionsspecifiedunderlaw aresatisfied,the
abilityofa creditoroftheentityorofanyotherprotectedseriesoftheentitytosatisfyaclaim
fromassetsof theprotectedseries.
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ENROLLED ORIGINAL
“(12)“Record”meansinformation:
“(A) Inscribedon a tangiblemedium; or
“(B) Storedinan electronicor othermedium and retrievablein
perceivableform.
“(13)“Specialdeposit”meansadepositthatsatisfiestherequirementssetforthin
§ 28-2954.
Ҥ28-2952,Scope;choiceoflaw;forum.
“(a)This chapterappliesto a specialdepositunder an accountagreementthatstatesthe
intentionofthepartiestoestablishaspecialdepositgovernedbythischapter,regardlessof
whetherapartytotheaccountagreementoratransactionrelatedtothespecialdeposit,orthe
specialdeposititself,has a reasonablerelationto theDistrict.
“(b)The partiestoan accountagreementmay choose a forum intheDistrictforsettlinga
disputearisingoutofthespecialdeposit,regardlessofwhetherapartytotheaccountagreement
or a transactionrelatedtothespecialdeposit,or thespecialdeposititself,has a reasonable
relationtotheDistrict.
“(6)Thischapterdoesnotaffect:
“(1)A rightorobligationrelatingtoadepositotherthanaspecialdepositunder
thischapter;or
“(2)The voidabilityofa depositor transferthatisfraudulentorvoidableunder
otherlaw.
Ҥ 28-2953.Variationby agreementor amendment.
“(a)Theeffectof§§28-2951through28-2955,§§28-2957through28-2960,and§28-
2963maynotbevariedbyagreement,exceptasprovidedinthosesections.Subjecttosubsection
(b)of thissection,theeffectof §§ 28-2956,28-2961,and 28-2962 may be variedby agreement.
*(b)A provisioninanaccountagreementorotherrecordthatsubstantiallyexcuses
liabilityor substantiallylimitsremediesforfailuretoperforman obligationunder thischapteris
notsufficienttovarytheeffectofaprovisionofthischapter.
“(o)Ifabeneficiaryisapartytoanaccountagreement,thebankandthedepositormay
amend theagreementwithouttheconsentofthebeneficiaryonlyiftheagreementexpressly
permitstheamendment,
“(d)Ifabeneficiaryisnotapartytoanaccountagreementandthebankandthedepositor
knowthebeneficiaryhasknowledgeoftheagreement’sterms,thebankandthedepositormay
amend theagreement withouttheconsentof thebeneficiaryonly iftheamendment does not
adverselyandmateriallyaffectapaymentrightofthebeneficiary.
“(e)Ifabeneficiaryisnotapartytoanaccountagreementandthebankandthedepositor
donotknowwhetherthebeneficiaryhasknowledgeoftheagreement’sterms,thebankandthe
depositormayamendtheagreementwithouttheconsentofthebeneficiaryonlyifthe
amendment ismade ingood faith.
Ҥ28-2954,Requirementsforspecialdeposit.
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ENROLLED ORIGINAL,
“A depositisa specialdepositifitis:
“(1)A depositoffundsinabankunderanaccountagreement;
“(2)For thebenefitof atleast2 beneficiaries,one ormore ofwhich may be a
depositor;
“(3)Denominatedinamediumofexchangethatiscurrentlyauthorizedor
adoptedbyadomesticorforeigngovernment;
“(4)Forapermissiblepurposestatedintheaccountagreement;and
(5)Subjecttoacontingency.
Ҥ 28-2955.Permissiblepurpose.
“(a)A specialdepositmustserveatleastonepermissiblepurposestatedintheaccount
agreementfromthetimethespecialdepositiscreatedintheaccountagreementuntiltermination
ofthespecialdeposit.
“(b)If,beforeterminationof thespecialdeposit,thebank or a courtdeterminesthe
specialdepositnolongersatisfiessubsection(a)ofthissection,§§28-2957through28-2960
shallceasetoapplytoanyfundsdepositedinthespecialdepositafterthespecialdepositceases
tosatisfysubsection(a)ofthissection.
“(c)If,beforeterminationof a specialdeposit,thebank determinesthespecialdepositno
longersatisfiessubsection(a)ofthissection,thebankmaytakeactionitbelievesisnecessary
underthecircumstances,includingterminatingthespecialdeposit.
Ҥ 28-2956.Payment tobeneficiaryby bank.
“(a)Unlesstheaccountagreementprovidesotherwise,thebank isobligatedto pay a
beneficiaryif therearesufficientactuallyand finallycollectedfundsinthebalanceofthe special
deposit.
“(b)Except asprovidedinsubsection(c)of thissection,theobligationto pay the
beneficiaryisexcusedifthefundsavailableinthe specialdepositareinsufficienttocoversuch
payment.
“(c)Unlesstheaccountagreementprovidesotherwise,ifthe fundsavailableinthe
specialdepositareinsufficienttocoveranobligationtopayabeneficiary,abeneficiarymay
electtobepaidthefundsthatareavailableor,ifthereismorethanonebeneficiary,aprorata
shareof thefundsavailable.Payment tothebeneficiarymaking theelectionunderthis
subsectiondischargesthebank’sobligationtopayabeneficiaryanddoesnotconstitutean
accordandsatisfactionwithrespecttoanotherpersonobligatedtothebeneficiary
“(d)Unlesstheaccountagreement providesotherwise,theobligationof thebank
obligatedtopayabeneficiaryisimmediatelydueandpayable.
“(e)Thebankmaydischargeitsobligationunderthissectionby:
“(1)Creditinganothertransactionaccountof thebeneficiary;or
“(2)Takingotheractionthat:
“(A)Ispermittedundertheaccountagreementforthebanktoobtaina
discharge;or
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ENROLLED ORIGINAL,
“(B)Otherwisewouldconstituteadischargeunderlaw.
“(f)Ifthebankobligatedtopayabeneficiaryhasincurredanobligationtodischargethe
obligationof another person,theobligationoftheotherpersonisdischargedifactionby the
bankundersubsection(¢)ofthissectionwouldconstituteadischargeoftheobligationofthe
otherpersonunder law thatdetermineswhetheran obligationissatisfied.
Ҥ28-2957.Propertyinterestofdepositororbeneficiary.
“(a)Neitheradepositornorabeneficiaryhasapropertyinterestinaspecialdeposit.
“(b)Anypropertyinterestwithrespecttoaspecialdepositisonlyintherighttoreceive
paymentifthebankisobligatedtopayabeneficiaryandnotinthespecialdeposititself.Any
propertyinterestunder thissubsectionisdeterminedunderotherlaw.
Ҥ 28-2958,When creditorprocessenforceableagainstbank.
“(a)Subjecttosubsection(b)ofthissection,creditorprocesswithrespecttoaspecial
depositisnotenforceableagainstthebankholdingthespecialdeposit.
“(b)Creditorprocessisenforceableagainstthebankholdingaspecialdepositwith
respecttoanamountthebankisobligatedtopayabeneficiaryoradepositoriftheprocess:
“(1)Isservedonthebank:
“(2)Providessufficientinformationtopermitthebanktoidentifythedepositoror
thebeneficiaryfrom thebank’sbooks and records;and
“(3)Givesthebankareasonableopportunitytoactontheprocess,
“(c)Creditorprocessservedonabankbeforeitisenforceableagainstthebankunder
subsection(b)ofthissectiondoesnotcreatearightofthecreditoragainstthebankoradutyof
‘thebank tothecreditor.Other law determineswhether creditorprocesscreatesa lienenforceable
againstthebeneficiaryonacontingentinterestofabeneficiary,includingadepositorasa
beneficiary,evenifnotenforceableagainstthebank.
Ҥ 28-2959,Injunctionor similarrelief.
“Acourtmayenjoin,orgrantsimilarreliefthatwouldhavetheeffectofenjoining,a
bank from payinga depositoror beneficiaryonlyifpayment would constitutea materialfraudor
facilitateamaterialfraudwithrespecttoaspecialdeposit.
Ҥ28-2960.Recoupmentorsetoff,
“(a)Exceptasprovidedinsubsection(b)or(¢)ofthissection,abankmaynotexercisea
rightofrecoupmentorsetoffagainstaspecialdeposit.
“(b)Anaccountagreementmayauthorizethebanktodebitthespecialdeposit:
“(1)Whenthebankbecomesobligatedtopayabeneficiary,inanamountthat
doesnotexceedtheamountnecessarytodischargetheobligation;
“(2)Forafeeassessedbythebankthatrelatestoanoverdraftinthespecial
depositaccount;
“(3)Forcostsincurredbythebankthatrelatedirectlytothespecialdeposit;or
“(4)Toreverseanearliercreditpostedbythebanktothebalanceofthespecial
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ENROLLED ORIGINAL
depositaccount,ifthe reversaloccursunder an eventorcircumstancewarrantedunderotherlaw
ofthe Districtgoverningmistakeandrestitution.
“(c)Thebankholdingaspecialdepositmayexercisearightofrecoupmentorsetoff
againstanobligationtopayabeneficiary,evenifthebankfundspaymentfromthespecial
deposit.
Ҥ28-2961.Dutiesandliabilityofbank.
“(@)A bankdoesnothavea fiduciarydutytoanypersonwithrespecttoaspecialdeposit.
“(b)Whenthebankholdingaspecialdepositbecomesobligatedtopayabeneficiary,a
debtor-creditorrelationshiparisesbetween thebank and beneficiary.
“(c)Thebankholdingaspecialdeposithasadutytoabeneficiarytocomplywiththe
accountagreementandthischapter.
“(@Ifthebankholdingaspecialdepositdoesnotcomplywiththeaccountagreementor
thischapter,thebankisliabletoadepositororbeneficiaryonlyfordamagesproximatelycaused
bythenoncompliance.ExceptasprovidedbyotherlawoftheDistrict,thebankisnotliablefor
consequential,special,orpunitivedamages.
“(e)Thebankholdingaspecialdepositmayrelyonrecordspresentedincompliancewith
theaccountagreement todeterminewhetherthebank isobligatedtopay a beneficiary.
“(f)Iftheaccountagreementrequirespaymentonpresentationofa record,thebankshall
determinewithinareasonabletimewhethertherecordissufficienttorequirepayment.Ifthe
agreementrequiresactionbythebankonpresentationofa record,thebankisnotliablefor
relyingingoodfaithonthegenuinenessoftherecordiftherecordappearsonitsfacetobe
genuine.
“(g)Unlesstheaccountagreementprovidesotherwise,thebankisnotrequiredto
determinewhetherapermissiblepurposestatedintheagreementcontinuestoexist.
Ҥ 28-2962.Term and termination.
“(a)Unlessotherwiseprovidedintheaccountagreement,aspecialdepositterminates5
yearsafterthedatethespecialdepositwasfirstfunded.
“(b)Unlessotherwiseprovidedintheaccountagreement,if thebank cannotidentifyor
locateabeneficiaryentitledtopaymentwhenthespecialdepositisterminated,andabalance
remainsinthespecialdeposit,thebankshallpaythebalancetothedepositorordepositorsasa
beneficiaryorbeneficiaries.
“(c)A bank thatpays theremainingbalanceas providedunder subsection(b)of this
sectionhasnofurtherobligationwithrespecttothespecialdeposit.
Ҥ28-2963.Principlesoflawandequity.
“SubtitleIofthistitle,Districtconsumerprotectionlaw,Districtlawsgoverningdeposits
generally,Districtlawrelatedtoescheatandabandonedorunclaimedproperty,andthe
prineiplesoflawandequity,includinglawrelatedtocapacitytocontract,principalandagent,
estoppel,fraud,misrepresentation,duress,coercion,mistake,andbankruptcy,supplementthis
chapterexcepttotheextentinconsistentwiththischapter.7

ENROLLED ORIGINAL
Ҥ28-2964,Uniformityofapplicationandconstruction.
“Inapplyingandconstruingthischapter,considerationmustbegiventotheneedtopromoteuniformityofthelawamongjurisdictionsthatenactit.
Ҥ 28- 2965.Transitionalprovision.
“Thischapterappliesto:
“(1)A specialdepositmadeunderanaccountagreementexecutedonorafterthe
effectivedateof thischapter;and
“(2)A depositmade under an agreementexecutedbeforetheeffectivedateof this
chapter,ift
“(A) Allpartiesentitledto amend theagreementagreetomake thedeposit
aspecialdepositgovernedbythischapter;and
“(B)Thespecialdepositreferencedintheamendedagreementsatisfies§
28-2954.”,
Sec,3.Fiscalimpactstatement.
The Counciladoptsthefiscalimpactstatementinthecommitteereportasthefiscal
impactstatementrequiredby section4aof theGeneralLegislativeProceduresAct of 1975,
approved October 16,2006 (120 Stat.2038; D.C. OfficialCode § 1-301.47a).
Sec.4.Effectivedate.
ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobythe
Mayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofcongressionalreviewasprovidedinsection602(c)(1)oftheDistrictofColumbiaHomeRuleAct,approvedDecember24,1973(87Stat.813;D.C.OfficialCode§1-206.02(c)(1)).
airman
Councilof theDistrictof Columbia.

APPROVED
NOVEMBER 24, 2025
COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004

DocketNo.826-0032
[ITEM ONCONSENTCALENDAR,
[XTACTION FirstReading,CC
[XVOTEDATE October21,2025
[CVOICEvoTE Approved
RECORDEDVOTEONREQUEST
ABSENT
[]ROLLCALLVOTE~Result

& ember)[Aye|Nav[Nh
ChaimanMendelson!X
‘Allen LewisGeorge
McDuffie
Nadeau
Parker
CERTIFICATIONRECORD
_ etek egor‘SecretarytotheCouncil

DocketNo.826-0032
[X ITEMONCONSENTCALENDAR,
[XJACTION FinalReading,CC
DOVOTEDATE November4,2025
[XIVOICEVOTE Approved
RECORDEDVOTEONREQUEST
‘ABSENT
[JROLLCALLVOTE~Result

OEE reat
ChairmanMendelson)X Henderson
Allen LewisGeorge
Mebutie
Nadeau
Fpron

CERTIFICATIONRECORD
EE BCom Date