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SB 2519

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

2026 Regular Session Introduced by Jake Bissaillon and 4 co-sponsors

Creates a contract-based framework for special deposits, clarifying eligibility, beneficiary payments, creditor limits, and termination rules for banks and depositors.

06/19/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 2519

Summary of Bill SB 2519 (Rhode Island, 2026)

Purpose and Intent

  • Establishes the Rhode Island Special Deposits Act, creating a unified framework for deposits designated as “special deposits” under an account agreement between a bank and depositors/beneficiaries.
  • The act is codified as Chapter 35 of Title 19 (Financial Institutions) and is titled the Uniform Special Deposits Act.
  • Takes effect upon passage.

Key Provisions and Changes

  • Definitions and Scope (19-35-2 to 19-35-3)

    • Introduces precise terms for the regime, including: account agreement, bank, beneficiary, contingency, creditor process, depositor, permissible purpose, and special deposit.
    • A “special deposit” must meet criteria in 19-35-5 (below) and be governed by this chapter when the account agreement explicitly states the parties intend a special deposit under these rules.

  • Requirements for a Special Deposit (19-35-5)

    • A special deposit is (a) funds in a bank under an account agreement; (b) for the benefit of at least two beneficiaries (one or more may be the depositor); (c) denominated in an authorized medium of exchange; (d) for a permissible purpose; and (e) subject to a contingency.

  • Permissible Purpose and Continuity (19-35-6)

    • The deposit must serve at least one permissible purpose stated in the agreement from creation until termination.
    • If the deposit ceases to satisfy permissible purposes, certain provisions (19-35-8 to 19-35-11) stop applying to funds deposited after that point.

  • Payment to Beneficiary (19-35-7)

    • Bank is ordinarily obligated to pay beneficiaries when funds are available and the obligation is triggered by a contingency, subject to the terms of the agreement.
    • If funds are insufficient, beneficiaries may elect to receive the available funds pro rata, which discharges the bank’s obligation to that beneficiary.

  • Interest, Property, and Against Creditor Processes (19-35-8 to 19-35-11)

    • Depositors/beneficiaries do not have a property interest in the deposit itself; only the right to payment.
    • Creditor processes (attachments, garnishments, etc.) generally do not apply to the special deposit, except under specific conditions to identify and pay entitled parties.
    • Courts may enjoin payments only in cases of material fraud.

  • Duties, Liability, and Reliance on Records (19-35-12)

    • The bank owes duties to comply with the account agreement; there is no fiduciary duty to the depositor/beneficiary.
    • The bank’s liability is for proximate damages caused by noncompliance, with allowances for reliance on records that appear genuine.

  • Term, Termination, and Residuals (19-35-13)

    • In the absence of another contract term, a special deposit terminates five years after being funded.
    • If no identifiable beneficiary remains at termination and funds exist, payment may be made to the depositor(s) as beneficiaries.

  • Other Provisions (19-35-14 to 19-35-17)

    • Uniformity, severability, transition rules, and the general incorporation of RI consumer protection and contract law principles where compatible.
    • The chapter is intended to promote uniformity across jurisdictions enacting similar statutes.

Who is Affected

  • Banks and other deposit-taking institutions operating in Rhode Island, including savings banks, savings and loan associations, credit unions, trust companies, and other regulated institutions.
  • Depositors who fund special deposits and their beneficiaries identified in the account agreements.
  • Courts and enforcement bodies, insofar as they handle disputes, injunctions, or creditor processes related to these deposits.

Procedural and Timeline Aspects

  • Introduced February 13, 2026, and referred to Senate Commerce.
  • Committee actions: favorably reported with a recommendation to hold for further study (April 14, 2026) and scheduled for consideration (April 24, 2026).
  • Effective date: upon passage.

Overall, SB 2519 creates a structured, contractually driven regime for special deposits, balancing depositor/beneficiary rights with bank duties, and clarifying creditor interactions and termination scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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