Legislation

* § 680-k. Duties and liability of bank. 1. A bank does not have a
fiduciary duty to any person with respect to a special deposit.

2. When the bank holding a special deposit becomes obligated to pay a
beneficiary, a debtor-creditor relationship arises between the bank and
beneficiary.

3. The bank holding a special deposit has a duty to a beneficiary to
comply with the account agreement and this article.

4. If the bank holding a special deposit does not comply with the
account agreement or this article, the bank is liable to a depositor or
beneficiary only for damages proximately caused by the noncompliance.
Except as provided by other law of this state, the bank is not liable
for consequential, special, or punitive damages.

5. The bank holding a special deposit may rely on records presented in
compliance with the account agreement to determine whether the bank is
obligated to pay a beneficiary.

6. If the account agreement requires payment on presentation of a
record, the bank shall determine within a reasonable time whether the
record is sufficient to require payment. If the agreement requires
action by the bank on presentation of a record, the bank is not liable
for relying in good faith on the genuineness of the record if the record
appears on its face to be genuine.

7. Unless the account agreement provides otherwise, the bank is not
required to determine whether a permissible purpose stated in the
agreement continues to exist.

* NB Effective January 1, 2026