IL HB0029

Creates the Uniform Special Deposits Act to govern special deposit accounts held by banks for the benefit of two or more beneficiaries, where funds are subject to contingencies before payment is required

Requires special deposits to serve a permissible purpose such as holding escrow funds, tenant security deposits, settlement funds, earnest money, or compensation under court judgments from creation until termination

Banks are obligated to pay beneficiaries when contingencies are met and sufficient collected funds exist in the deposit; if funds are insufficient, beneficiaries may elect to receive available funds or a pro rata share

Protects special deposits from creditor process (garnishment, liens, etc.) against the bank, except when the bank becomes obligated to pay a specific depositor or beneficiary

Courts may only enjoin bank payments from special deposits if payment would constitute or facilitate material fraud; banks have no fiduciary duty but must comply with account agreements, and deposits automatically terminate after five years unless otherwise specified