WV HB2745

Creates the Uniform Special Deposits Act establishing legal framework for special deposits held by banks for the benefit of two or more beneficiaries, such as escrow accounts, security deposits, settlement funds, and other contingent payment arrangements

Defines special deposits as funds held for a permissible governmental, regulatory, commercial, charitable, or testamentary purpose that are subject to a contingency before payment to beneficiaries

Protects special deposits from creditor process (attachment, garnishment, levy) until the bank becomes obligated to pay a specific beneficiary, at which point creditors may enforce against that payment obligation

Limits bank liability to direct damages for noncompliance with account agreements, prohibits banks from exercising recoupment or set-off against special deposits except for overdraft fees and costs directly related to the deposit, and establishes that banks have no fiduciary duty regarding special deposits

Sets default termination at five years after initial funding unless otherwise agreed, with remaining balances paid to depositors if beneficiaries cannot be identified or located