Certificate of deposit

“ And there seems to be no good reason for extending the principle to certificates of deposit, but three reasons for not so doing: (1) They contain a stipulation “to be paid on the return of the certificate properly endorsed,” which, being part of the contract should be heeded just as “on demand” should have been in the case of demand notes. (2) The custom of bankers to pay at their banking-houses and not where they find the certificate, as is the case with notes. (3) The analogy of bank-notes, which have repeatedly been held not within the statute. ”

“ If Hood treated the certificate as money, so did they; and shall they now be permitted to say that they will not be bound by their agreement to receive it as money?
In passing upon the transactions of men, the law treats the subject-matter according to the usual understanding and usages prevailing where the transaction took place. In this view, the certificate of deposit is money. It is so treated and dealt with in the common business of life. ”

“ Much depends upon the intent of the parties in the transaction. Consequently, where a certificate of deposit was given, payable at a future day, it was held not to be usury, it appearing that it was given at the request of the depositor, and for his accommodation, without any intent to secure usury. ”

“ Persons depositing money only once, or very seldom, and intending to draw for the same at once, usually receive from the cashier a certificate of deposit, which states the name of the depositor, the sum deposited, and to whose order it is to be paid. ”

“ A bank incurs no greater risk in certifying a check than in giving a certificate of deposit. In well-regulated banks the practice is at once to charge the check to the account of the drawer, to credit it in 'a certified check account,' and when the check is paid to debit that account with the amount. ”

“ Has an assessor in Dakota any right to assess money on deposit in a bank in Michigan?
Subscriber.
Answer.—According to the laws of most States and Territories a certificate of deposit is just as assessable as the money it represents. Money is subject to assessment wherever it belongs. ”

“ Agency—Ratification.—A, a collector employed by B, deposited in the defendant bank, without the knowledge of B, certain sums of money, designating as payee in the bank register “B, by A.” Six certificates of deposit at different times were thus issued to A, payable to the order of B, and all were subsequently paid to A, upon being indorsed “B, by A.” The certificates of deposit were never in B’s possession, and it did not appear but that each new certificate was procured partly or wholly with funds derived from payment of the previous one. ”

“ The balance of a depositor in paid up deposits and capita [Pg 72] lised interests is not permitted to amount at any time to more than 1,000 florins.
The Depositor must with the first deposit inscribe his signature in the place appointed on the third page of the deposit-book and must further give an account of his calling or occupation, the place, day, month, year of his birth, as well as the place where he lives and his address. He must moreover sign with his own hand the so-called «Gegenschein» (Counter-certificate) to be found in the deposit book. ”

“ A certificate of deposit is like a check on a banker, of which it is said, (Chitty on Bills, 323,) 'in practice they are taken as cash, and it has been decided that a banker in London, receiving bills from his correspondent in the country, to whom they had been endorsed to present for payment, is not guilty of negligence in giving up such bills to the acceptor, upon receiving a check on a banker for the amount, although it turn out that such check is dishonored.'Russell v. ”

“ The payee of this certificate of deposit may indorse and transfer it. The holder may collect the amount by presenting the certificate to the bank.
131. Requisites of Negotiable Instruments. Certain elements are recognized, by long usage, as being necessary to constitute an instrument a valid negotiable instrument. The instrument must contain words of negotiability, such as or bearer, or order, or words of similar meaning. The instrument must contain a specific promise to pay a certain sum of money at a definite time. ”

“ This certificate, which is signed by the Controller, must be forwarded with the deposit book and application whenever the depositor wishes to sell the whole or a portion of her stock. When stock is sold the sale is effected at the current price—the price in the open market on the day of sale—and a warrant is sent to the depositor for the amount realised, less the commission.
All dividends on the stock standing in a depositor’s name are credited to her deposit account when they become due. ”

“ If the amount realized from such emergency assessments shall be insufficient to pay off the depositors of all failed banks having valid claims against said depositors' guaranty fund, the state banking board shall issue and deliver to each depositor, having such unpaid deposit, a certificate of indebtedness for his unpaid deposit, bearing 6 per centum interest. ”

“ Only one deposit was made; and nothing further was heard of the account until 1872, when a labourer wrote from Northumberland claiming the money as having been deposited by his wife, who had recently died. On a marriage certificate being forwarded, it was found that the marriage took place in 1851, and that the wife was thirty-five years of age at that time. The applicant also stated that he could swear to his wife's handwriting, whereas the depositor could not write. ”

“ Whereas commercial banks under the law on commercial banks, as well as finance companies under the law on the practice of financing business, security business, and crédit foncier business, now accept deposits by means of issuing certificates of deposit, and the said certificates of deposit are negotiable instruments, it is appropriate to designate measures for prevention of forgery of the described instruments in order to protect common interest which may injured by the use of forged certificates of deposit. ”

“ As we have seen, a deposit of money to one's credit in a bank does not operate to diminish the estate of the depositor, for when he parts with the money he creates at the same time, on the part of the bank, an obligation to pay the amount of the deposit as soon as the depositor may see fit to draw a check against it. ”

“ The bank cannot discharge its liability to account with the depositor to the extent of the deposit, except by payment to him, or to the holder of a written order from him, usually in the form of a check. If the bank pays out money to the holder of a check upon which the name of the depositor, or of a payee or indorsee, is forged, it is simply no payment as between the bank and the depositor ”

“ No bank is bound to take notice of memoranda and figures upon the margin of a check, which a depositor places there merely for his own convenience, to preserve information for his own benefit; and in such case, the memoranda and figures are not a notice to the bank that the particular check is to be paid only from a particular fund. So, too, a mark on a deposit ticket, if intended to require a particular deposit to be kept separate from all other deposits placed to the credit of the same depositor, must be in the shape of a plain direction, if such a duty is to be imposed on the bank. ”

“ No Depositor is permitted to obtain, or cause to be obtained on his behalf, more than one deposit-book issued in his name; on the other hand every one is free, beyond their own deposit-books, to obtain for other, wholly distinct persons, deposit-books and to pay in deposits on their behalf. ”

“ Where several bank accounts are kept and a check register—in addition to the cash book—is used to keep record of the accounts with the various banks, it may happen that checks drawn on one bank are wrongly charged to another; that checks drawn, or deposits made one day, are not credited until the next; that certain drafts deposited with the bank for collection are not credited to the depositor’s account until collection is made, whereas the depositor debited the bank at the time of the deposit ”

“ The New York statute does not profess, however, to change the legal relation which results from a deposit made in a bank. The deposit of money by a customer with his banker is one of loan, with a superadded obligation that the money is to be paid when demanded by a check. ”

“ As a general rule, in the absence of an agreement to the contrary, a deposit, not made specifically applicable to some other purpose, may be applied by the bank in payment of the indebtedness of the depositor. ”

“ We treat it, in this respect, exactly as the parties have treated it, that is, as a case where the notes have been paid and credited as cash. The notes have not been credited as notes, or as a special deposit; but the transaction is precisely the same as if the money had been first paid to the plaintiffs, and instantaneously the same money had been deposited by them. It can make no difference that the same agent is employed by both parties, the one to receive, and the other to pay and credit. ”

“ This will not often be attempted, however, because the officer will not know in what box the debtor might have goods, and the safe deposit company will not tell him. The company is certainly under no obligation to help the officer. The regular way for a creditor to get at the goods of his debtor, concealed in the safe deposit box, is by first making the debtor disclose on examination in court what property he has, and then getting an order from the court that the debtor shall turn over what he has disclosed. ”

“ If a depositor in a bank has made a note payable there this is regarded very much like a check, it is a direction to the bank to pay it, especially by the Negotiable Instruments law. Unless the maker of a note is insolvent, a bank can never pay the unmatured note of a depositor. Nor can a bank apply a deposit, which is known to be trust money, or belonging to another person than the depositor to the payment of his note. Generally a bank declines to pay a note that is overdue though there is no law, except in a few states, against paying it should the bank decide to do so. ”

“ It is not ordinarily bound to inquire whence the depositor received the moneys deposited, or what obligation such depositor is under to other parties. It is only when there gather around any deposit, or line of deposits, circumstances of a peculiar nature, which individualize that deposit or line of deposits, and inform the bank of peculiar facts of equitable cognizance, that it is debarred from treating the deposit as that of moneys belonging absolutely to the depositor. We notice, therefore, the peculiar circumstances which cast knowledge upon this bank, in respect to these deposits. ”

“ The deposit is handed to the receiving teller of the bank, who, after verifying the ticket, makes an entry of the amount in the depositor’s pass-book. Duplicate deposit tickets are usually kept by the depositor. It is important to note that checks must be indorsed before they are deposited, so as to make them collectible by the bank. ”

“ It has been alleged that a fisherman might get advances from the merchant who employs him, although he had a deposit receipt in the bank, especially in a distant place, where it would cost some trouble to him to go to his bank and get his deposit receipt altered. ”

“ This charge the court gave, adding, 'If it was handed in as a deposit, it became a deposit at the time it was received. Taking the surrounding circumstances into consideration, if it was received by the teller as a deposit, it became a deposit. That I give you, for it has these words in it, 'or received as a deposit."
For most purposes the law regards the entire day as an indivisible unit. But when the priority of one legal right over another, depending upon the order of events occurring on the same day, is involved, this rule is necessarily departed from. ”

“ It is made a crime to accept a deposit with knowledge of insolvency. Only when the bank's condition measures up to the prescribed standards of safety and liquidity may deposits be received.↑ The Comptroller of the Currency has insisted on the distinction between deposits and borrowings and has stated that to list borrowings as deposits-e.g., as certificates of deposit-is a grave misrepresentation of the condition of the bank. ”

“ Presumably, therefore, moneys deposited by them were the proceeds of cattle consigned to them for sale. Their business being known to the bank, such presumption goes with their deposits; and, while not of itself notice, is a circumstance to compel inquiry on the part of the bank in respect to any particular deposit. We do not mean to be understood as implying that a bank receiving deposits from one whom it knows to be in the commission business receives every deposit in trust for any unknown principal. ”

“ The Comptroller's definition of 'deposits' should be honored here. For where the risk is on the customer that his cash and checks may never reach the bank, he cannot in good sense or in good law be deemed to have made a deposit while the funds are in transit. ”

“ Besides receiving money on current account, however, bankers receive it on deposit. Deposit accounts are those in which sums of money are lodged in a bank on the understanding that a certain rate of interest is to be paid upon them, and that a certain number of days’ notice is to be given before they are withdrawn. There is no such thing as drawing cheques on a deposit account.
When money is received on deposit, a deposit receipt is given. ”