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United States — Utah Act or statute

United States — Utah legislation

Utah Code § 7-28-111, 2025

A bank holding a special deposit has limited duties and liability rules tied to the account agreement and this chapter.

Source excerpt

account agreementsbank reliance on recordsbankingbeneficiary paymentdamagesdocument genuinenessdocument presentationliabilitypaymentspecial deposits
Jurisdiction
United States — Utah
Status
In force
Official identity
Year 2025
Dates
Enacted 2025
More statute details
Dates
Enacted 2025
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01

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“A bank holding a special deposit has limited duties and liability rules tied to the account agreement and this chapter.”

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Duties and liability of bank.

A bank holding a special deposit has limited duties and liability rules tied to the account agreement and this chapter.

Section 7-28-111

Subsection 7-28-111(3)

A bank holding a special deposit must comply with the account agreement and this chapter for the benefit of a beneficiary.

Section 7-28-111(3)

Subsection 7-28-111(4)(b)

Except where other state law provides otherwise, the bank is not liable for consequential, special, or punitive damages.

Section 7-28-111(4)(b)

Subsection 7-28-111(6)

If an account agreement requires payment when a record is presented, the bank must decide within a reasonable time whether the record is sufficient to require payment.

Section 7-28-111(6)

Subsection 7-28-111(7)

The bank is not required to determine whether a permissible purpose in the account agreement still exists, unless the agreement says otherwise.

Section 7-28-111(7)

04

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In force source record

Source record from le.utah.gov · Enacted 2025

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Showing 12 of 12 provisions

Provision 12

Part 7-28-1

part 7-28-1 Uniform Special Deposits Act

§ 7-28-111Duties and liability of bank.Provision

Source excerpt

A bank holding a special deposit has limited duties and liability rules tied to the account agreement and this chapter.

Duties and liability of bank. A bank does not have a fiduciary duty to any person with respect to a special deposit. When the bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary. The bank holding a special deposit has a duty to a beneficiary to comply with the account agreement and this chapter. If the bank holding a special deposit does not comply with the account agreement or this chapter, 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. 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. 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 the record's face to be genuine. Unless the account agreement provides otherwise, the bank is not required to determine whether a permissible purpose stated in the agreement continues to exist.
Section 7-28-111Verify source
§ 7-28-111(1)Subsection 7-28-111(1)Provision

Source excerpt

A bank is not subject to a fiduciary duty to any person for a special deposit.

A bank does not have a fiduciary duty to any person with respect to a special deposit.
Section 7-28-111(1)Verify source
§ 7-28-111(2)Subsection 7-28-111(2)Provision

Source excerpt

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

When the bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary.
Section 7-28-111(2)Verify source
§ 7-28-111(3)Subsection 7-28-111(3)Provision

Source excerpt

A bank holding a special deposit must comply with the account agreement and this chapter for the benefit of a beneficiary.

The bank holding a special deposit has a duty to a beneficiary to comply with the account agreement and this chapter.
Section 7-28-111(3)Verify source
§ 7-28-111(4)Subsection 7-28-111(4)Provision

Source excerpt

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

If the bank holding a special deposit does not comply with the account agreement or this chapter, 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.
Section 7-28-111(4)Verify source
§ 7-28-111(4)(a)Subsection 7-28-111(4)(a)Provision

Source excerpt

If a bank holding a special deposit fails to comply with the account agreement or this chapter, it is liable for damages proximately caused by that noncompliance.

If the bank holding a special deposit does not comply with the account agreement or this chapter, the bank is liable to a depositor or beneficiary only for damages proximately caused by the noncompliance.
Section 7-28-111(4)(a)Verify source
§ 7-28-111(4)(b)Subsection 7-28-111(4)(b)Provision

Source excerpt

Except where other state law provides otherwise, the bank is not liable for consequential, special, or punitive damages.

Except as provided by other law of this state, the bank is not liable for consequential, special, or punitive damages.
Section 7-28-111(4)(b)Verify source
§ 7-28-111(5)Subsection 7-28-111(5)Provision

Source excerpt

A bank holding a special deposit may rely on records that comply with the account agreement when deciding whether it must pay a beneficiary.

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.
Section 7-28-111(5)Verify source
§ 7-28-111(6)Subsection 7-28-111(6)Provision

Source excerpt

If an account agreement requires payment when a record is presented, the bank must decide within a reasonable time whether the record is sufficient to require payment.

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 the record's face to be genuine.
Section 7-28-111(6)Verify source
§ 7-28-111(6)(a)Subsection 7-28-111(6)(a)Provision

Source excerpt

If an account agreement requires payment when a record is presented, the bank must decide within a reasonable time whether the record is sufficient to require payment.

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.
Section 7-28-111(6)(a)Verify source
§ 7-28-111(6)(b)Subsection 7-28-111(6)(b)Provision

Source excerpt

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 the record's face to be genuine.

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 the record's face to be genuine.
Section 7-28-111(6)(b)Verify source
§ 7-28-111(7)Subsection 7-28-111(7)Provision

Source excerpt

The bank is not required to determine whether a permissible purpose in the account agreement still exists, unless the agreement says otherwise.

Unless the account agreement provides otherwise, the bank is not required to determine whether a permissible purpose stated in the agreement continues to exist.
Section 7-28-111(7)Verify source

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