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Abstract: 

For nearly a century, commercial parties have eschewed special deposits in favor of more costly and time-consuming mechanisms that, despite their inconvenience, offer more predictable judicial outcomes. However, the Uniform Law Commission recently introduced the Uniform Special Deposits Act (the “Act”), which offers states the ability to adopt a common legal regime that would provide commercial parties with an efficient mechanism to protect funds that will become due to one beneficiary or another upon the occurrence of a contingent future event. This article explores the genesis of the Act, how it will likely interact with existing law, and the benefits it will offer.

Keywords: Special Deposits; Pre-Funded and Segregated Bank Liability

Affiliations:  1: Hunton Andrews Kurth LLP; 2: Hunton Andrews Kurth LLP; 3: Hunton Andrews Kurth LLP.