ND SB2123

Creates chapter 6-08.6 of the North Dakota Century Code to establish a uniform legal framework for "special deposits" held by banks and credit unions for specific purposes such as escrow accounts, security deposits, earnest money, and financial market settlement funds

Defines a special deposit as funds held for at least two beneficiaries, for a stated permissible purpose, subject to a contingency that must occur before the bank is obligated to pay

Protects special deposits from creditor process (garnishment, attachment, liens) unless the bank is already obligated to pay a beneficiary, and prohibits banks from exercising recoupment or set-off rights against the deposits except in limited circumstances

Establishes that banks have no fiduciary duty regarding special deposits, limits bank liability to direct damages for noncompliance, and sets a default 5-year termination period unless otherwise specified in the account agreement

Applies to account agreements executed after July 31, 2025, or to pre-existing deposits if all parties agree to convert them; passed unanimously (Senate 47-0, House 88-0)