AZ SB1206

Adds Article 5.1 to Arizona Revised Statutes Title 6, Chapter 2, establishing the Uniform Special Deposits Act governing special deposit accounts at banks.

Defines special deposits as deposits of funds under an account agreement for at least two beneficiaries, subject to stated contingencies, and serving permissible purposes such as escrow, security deposits, or settlement of financial obligations.

Prohibits creditor process from being enforced against banks holding special deposits, except when the bank becomes obligated to pay a beneficiary or depositor and proper service requirements are met.

Specifies that banks have no fiduciary duty with respect to special deposits and limits bank liability to damages proximately caused by noncompliance with the account agreement or statute, excluding consequential, special, or punitive damages.

Establishes that special deposits terminate five years after initial funding unless otherwise specified in the account agreement, and any remaining balance reverts to the depositor if beneficiaries cannot be identified or located.