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  • SECTION 680-D
    Requirements for special deposit
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  • ARTICLE 13-F
    Uniform Special Deposits Act
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  • SECTION 680-F
    Payment to beneficiary by bank
    • This entry was published on 2025-12-12
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    SECTION 680-E

    Permissible purpose

    Banking (BNK) CHAPTER 2, ARTICLE 13-F

    * § 680-e. Permissible purpose. 1. A special deposit must serve at
    least one permissible purpose stated in the account agreement from the
    time the special deposit is created in the account agreement until
    termination of the special deposit.

    2. If, before termination of the special deposit, the bank or a court
    determines the special deposit no longer satisfies subdivision one of
    this section, sections six hundred eighty-g, six hundred eighty-h, six
    hundred eighty-i and six hundred eighty-j of this article cease to apply
    to any funds deposited in the special deposit after the special deposit
    ceases to satisfy subdivision one of this section.

    3. If, before termination of a special deposit, the bank determines
    the special deposit no longer satisfies subdivision one of this section,
    the bank may take action it believes is necessary under the
    circumstances, including terminating the special deposit.

    * NB Effective January 1, 2026