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Committee hears sponsor on bill to create a statutory special-purpose bank account mechanism
Summary
Representative Knight presented a Uniform Law Commission bill (HB5332) to authorize banks to hold funds in a statutory special-purpose account — a lower-cost alternative to trusts for inter-party holding or escrow.
Representative Knight introduced House Bill 5332, a Uniform Law Commission model that would authorize banks to hold funds in a statutory special-purpose account, described by the sponsor as a "trust on the cheap."
Knight said the law allows parties to create an account at a bank for almost any purpose, with named beneficiaries and rules spelled out by statute, providing a lower-cost alternative to hiring attorneys to formalize trusts or escrow arrangements. The sponsor said the commission drafted the model and the House passed a version last year; there were no witnesses and no questions recorded in the provided excerpt.
Committee members did not record a vote on HB5332 in the provided excerpt. The sponsor said the measure had been thought out by the Uniform Law Commission and he hoped to pass it again and send it to the Senate.
