Enacts the uniform special deposits act

Where it stands

Signed into law.

Banks · New York State Assembly

Also referred to Banks · New York State Senate.

Purpose, from the sponsor's memo

The Uniform Law Commission's Uniform Special Deposits Act (the "Act") is intended to provide clarity and safety in an area of law- a common bank- ing transaction known as a "special deposit" that has been subject to uncertainty for many years. Under the Act, a special deposit is defined as a deposit of money at a bank which is to be disbursed for a permissi- ble purpose to a designated person ("beneficiary") only after a speci- fied event or contingency has occurred. Examples of the uses of a special deposit range from the deposit of funds by a tenant as security under a real estate lease, to deposit of funds by a bank with a clearing house to be paid to the bank or disbursed to other banks in the clearing system at the end of inter-bank settlements. Special deposits play an important rote in commerce and industry, but their use has been diminished because they are subject to an antiquated and unclear body of common law that creates unnecessary risks to the parties. Under the common law governing special deposits currently, the bankruptcy of the depositor or an attachment by a creditor of assets of the depositor or a beneficiary may effectively prevent the bank from making payment of the deposit to the appropriate party when the contin- gency occurs. This impairs the rights of and adversely affects all the parties to the deposit. The Act establishes a framework for banks and their customers to utilize special deposits with greater certainty of how such deposits wilt be treated when such events occur. Importantly, the Act is an "opt in" statute. The Act applies only if a bank and its customer specify in the account agreement that they intend to be covered by the Uniform Special Deposits Act. Neither banks nor their customers are required to use this Act. This feature permits existing relationships to continue undisturbed and lets parties choose to utilize the protections provided by the Act when they wish. Matters not addressed by the Act are controlled by general laws already govern- ing deposits or contractual arrangements.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

• Vote: Floor vote

  NY SenateJun 5, 2025Result: passedSenate vote on A5345, the matching Assembly bill.

  Voted yes (55)Voted no (5)Voted present (0)Absent (3)

  See member positions for the vote on Jun 5, 2025 (Floor vote)

• Vote: Committee vote · Banks

  Senate BanksMay 20, 2025Result: passed

  Voted yes (7)Voted no (0)Voted present (0)Absent (0)

  See member positions for the vote on May 20, 2025 (Committee vote · Banks)

Full history

1. Dec 5, 2025

   Signed

   SIGNED CHAP.583

   NY Assembly

2. Dec 1, 2025

   Sent to the executive

   DELIVERED TO GOVERNOR

   NY Assembly

3. Jun 5, 2025

   3RD Reading CAL.1171

   3RD READING CAL.1171

   NY Senate

4. Jun 5, 2025

   Passed a chamber

   PASSED SENATE

   NY Senate

5. Jun 5, 2025

   Substituted

   SUBSTITUTED BY A5345

   NY Senate

About this record

Summary

The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.

Cosponsors

The list shows the cosponsors who are on Agora, A to Z. The official record may list more.

Party colors

Parties are shown in the same neutral colors.

Source

From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 21, 2026. About our data

Read the record

• Read on NY Senate (opens in a new tab) The official record on nysenate.gov.