Plain English Breakdown
The definition for 'Record' and subsequent definitions are truncated in the provided source text.
Uniform Special Deposits Act
This law creates rules for special bank accounts where money is held to meet specific goals or conditions before being paid out.
What This Bill Does
- Creates a new state law called the Uniform Special Deposits Act.
- Applies to special deposits even if they do not have a direct connection to Illinois, as long as the account agreement states an intention to establish one under this Act.
- Requires that these special deposits must serve at least one allowed purpose from start to finish.
- Obliges banks to pay beneficiaries if there are enough collected funds in the account balance, unless the agreement says otherwise.
- Allows courts to stop a bank from making payments only when payment would cause or help commit fraud.
Who It Names or Affects
- Banks, credit unions, savings and loan associations, trust companies, and other financial institutions holding these accounts.
- People who open or fund the special deposit accounts (depositors).
- Individuals named in the account agreement as recipients of funds (beneficiaries).
Terms To Know
- Special Deposit
- A bank account created by an agreement to hold money for a specific purpose or until certain conditions are met.
- Permissible Purpose
- An allowed goal for the funds, such as holding money in escrow, paying benefits, securing a contract, supporting financial markets, or other governmental, regulatory, commercial, charitable, or testamentary objectives.
- Contingency
- A specific event listed in the account agreement that must happen before the bank is required to pay out the money.
Limits and Unknowns
- The text does not state when this law will officially take effect.
- The full definition of 'Record' and other terms at the end of Section 2 are cut off in the provided source material.
- The bill status shows it was re-referred to a committee, so its final path is unclear based on this text alone.