LB 231 — Adopt the Uniform Special Deposits Act

LB231 LB231 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA231 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTMarch SESSION11, LEGISLATIVE2025 BILL 231 FINAL READING   Introduced by Hallstrom, 1;

Read  firstA timeBILL JanuaryFOR 14,AN 2025ACT Committee:relating to banking and finance;

Banking, Commerce and Insurance A BILL FOR AN ACT relating to banking and finance;

Be it enacted by the people of the State of Nebraska, -1- LB231 LB231 2025 Section 1.

-2- LB231 LB231 2025 (8) Knowledge of a fact means:

or -3- LB231 LB231 2025 (iv) for distribution to a defined class of persons after identification of the class members and their interest in the funds;

or (E) hold margin, other cash collateral, or funds that support the orderly -1- LB231 LB231 2025 functioning of financial market infrastructure or the performance of an obligation with respect to the infrastructure.

-4- LB231 LB231 2025 Sec.

(a) (a) The Uniform Special Deposits Act applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit governed by the act, regardless of whether a party to the account agreement or a transaction related to the special deposit, or the special deposit itself, has a reasonable relation to this state.

(d) If a beneficiary is not a party to an account agreement and the financial institution and the depositor know the beneficiary has knowledge of the agreement's terms, the financial institution and the -5- LB231 LB231 2025 depositor may amend the agreement without the consent of the beneficiary only if the amendment does not adversely and materially affect a payment right of the beneficiary.

(a) (a) A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.

(a) Unless the account agreement provides otherwise, the -6- LB231 LB231 2025 financial institution is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.

(c) Unless the account agreement provides otherwise, if the funds available in the special deposit are insufficient to cover an obligation to pay -2- LB231 LB231 2025 a beneficiary, a beneficiary may elect to be paid the funds that are available or, if there is more than one beneficiary, a pro rata share of the funds available.

(a) (a) Neither a depositor nor a beneficiary has a property -7- LB231 LB231 2025 interest in a special deposit.

(a) (a) Subject to subsection (b), creditor process with respect to a special deposit is not enforceable against the financial institution holding the special deposit.

(a) Except as provided in subsection (b) or (c), a -8- LB231 LB231 2025 financial institution may not exercise a right of recoupment or set off against a special deposit.

 (a)(a) A financial institution does not have a fiduciary duty to any person with respect to a special deposit.

Except as provided by other law of this -9- LB231 LB231 2025 state, the financial institution is not liable for consequential, special, or punitive damages.

-3- LB231 LB231 2025 (e) The financial institution holding a special deposit may rely on records presented in compliance with the account agreement to determine whether the financial institution is obligated to pay a beneficiary.

The Uniform Commercial Code, consumer protection law, law governing deposits generally, law related to escheat and abandoned or unclaimed property, and the principles of law and equity, including law related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, and bankruptcy, supplement -10- LB231 LB231 2025 the Uniform Special Deposits Act except to the extent inconsistent with the act.

-11--4-