WV SB561

Adopts the Uniform Special Deposits Act in West Virginia, establishing a legal framework for "special deposits" held by banks for the benefit of two or more beneficiaries, such as escrow accounts, security deposits, settlement funds, or financial market collateral

Requires special deposits to serve a permissible governmental, regulatory, commercial, charitable, or testamentary purpose and be subject to a contingency that must occur before the bank is obligated to pay a beneficiary

Protects special deposits from creditor process (attachment, garnishment, levy) until the bank becomes obligated to pay a beneficiary, and prohibits banks from exercising recoupment or setoff rights against the deposit except for specified fees and costs

Limits bank liability to only proximate damages caused by noncompliance with the account agreement or the act, with no fiduciary duty owed to depositors or beneficiaries

Special deposits terminate after five years unless otherwise agreed, with remaining balances paid to depositors if beneficiaries cannot be identified or located; effective July 10, 2025