Two uniform acts were approved for inclusion in the Council of State Governments' (CSG) "Shared State Legislation" compilation at the CSG SSL's December 2025 meeting. The Uniform Mortgage Modification Act and the Uniform Special Deposits Act – included as "shared state legislation" – were drafted and approved by the Uniform Law Commission (ULC).
Uniform Mortgage Modification Act. The parties to a mortgage often agree to modify the terms of the mortgage loan or other obligation secured by the mortgage after the initial transaction is completed. However, the common law is not clear on the issue of whether the modification of a mortgage loan or other obligation secured by a mortgage affects the priority of the mortgage against junior interest holders. This lack of clarity in the law causes delay and unnecessary expense for borrowers and in some cases may mean that a loan is foreclosed rather than modified. The Uniform Mortgage Modification Act is meant to resolve problems and reduce uncertainty by establishing several categories of safe harbor modifications that can be made to recorded mortgages and secured obligations, and outlines the implications of each type of modification. Permissible modifications under the Act include changes to maturity dates, interest rates, capitalization or payment schedules, escrow or reserve requirements, and other changes that do not affect the priority of junior interest holders or are not materially prejudicial. This Act aims to reduce costs and create straightforward alternatives to foreclosure when possible. The Uniform Mortgage Modification Act has been enacted in Nevada and Utah.
Uniform Special Deposits Act. A special deposit is an account at a bank that holds funds that may be paid upon the occurrence of one or more contingencies. Although such accounts are common, the legal protections afforded to them are uncertain and outdated in the context of modern banking. The Uniform Special Deposits Act minimizes these legal uncertainties by providing clear and executable rules. First, the Act sets forth several elements for when a deposit is considered a "special deposit." Second, the Act specifies that a special deposit is a debt owed to the beneficiary after determination of a stated contingency. Third, the Act clarifies that a special deposit is remote from a depositor's bankruptcy estate unless the depositor has a determined right to the special deposit in its capacity as a beneficiary. Finally, the Act reduces the vulnerability created by the prospect of the bank holding the special deposit exercising a right of set off against the special deposit for a mature debt of the depositor or a beneficiary. The Uniform Special Deposits Act gives banks and their customers legal certainty that the expectations of special deposit account users will be respected. The Uniform Special Deposits Act has been enacted in Arizona, Colorado, Delaware, District of Columbia, Nebraska, New York, North Carolina, North Dakota, Oklahoma, Utah, Washington, and West Virginia.
Further information on the Uniform Mortgage Modification Act and the Uniform Special Deposits Act can be found at the ULC's website at www.uniformlaws.org.
What is Shared State Legislation (SSL)?
Launched in 1941, The Council of State Governments' Shared State Legislation–or SSL–program, previously known as Suggested State Legislation, is both a member-driven process and an annual publication detailing topics of current importance to the states. The CSG SSL Committee, comprised of state officials, meets annually to review legislation adopted in the states. The committee then selects legislation to be included in the annual SSL volume. These volumes are published online for dissemination to state leaders and staff.
CSG does not promote or advocate for the enactment of state legislation, nor does it draft model legislation. Rather, the program's goal is to facilitate the sharing of legislative ideas among CSG members. The consideration or dissemination of such legislation by the SSL Committee does not constitute an endorsement nor will CSG advocate for the enactment of any such legislation in any member jurisdiction.
About the Uniform Law Commission
The Uniform Law Commission is comprised of more than 350 practicing lawyers, governmental lawyers, judges, law professors and lawyer-legislators, who are appointed by each state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands to research, draft and promote enactment of uniform state laws in areas of state laws where uniformity is desirable and practical. Now in its 135th year, the ULC has provided states with over 250 uniform acts that help bring clarity and stability to critical areas of state statutory law.
About the Council of State Governments
Founded in 1933, the Council of State Governments is the country's only organization serving all three branches of state government. CSG is a region-based forum that fosters the exchange of insights and ideas to help state officials shape public policy. This offers unparalleled regional, national and international opportunities to network, develop leaders, collaborate and create problem-solving partnerships.
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Contact: Katie Robinson, ULC Senior Director, Strategy & Communications, krobinson@...
Uniform Law Commission
111 N. Wabash Ave., Suite 1010, Chicago, IL 60602
312-450-6600, www.uniformlaws.org
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Katie Robinson
Senior Director for Strategy and Communications
Chicago IL
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