HB 24-1232: Uniform Special Deposits Act

• Enacts Article 111 to Title 11 of Colorado Revised Statutes, establishing the "Uniform Special Deposits Act" to govern special deposit accounts held by banks for the benefit of multiple beneficiaries.

• Defines special deposits as funds held under an account agreement for at least two beneficiaries with a stated permissible purpose (escrow, security deposits, settlements, earnest money, etc.) and subject to a contingency event.

• Protects special deposits from creditor process and garnishment, except when the bank is obligated to pay funds that are immediately due and payable to a beneficiary or depositor.

• Limits banks' liability to damages proximately caused by noncompliance with the account agreement, excluding consequential, special, or punitive damages, and provides that banks have no fiduciary duty to depositors or beneficiaries.

• Establishes a five-year default term for special deposits unless otherwise specified in the account agreement, and requires return of remaining funds to the depositor if the bank cannot locate a beneficiary at termination.