Security deposit

“ The fact that the claim of the state to the deposit may be defeated by the appearance of the depositor or other claimant does not, as argued, prove that the deposit was not seized. An attachment of real estate is a seizure, although it may be dissolved by bankruptcy or otherwise. ”

“ 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. ”

“ Wealthier litigants, of course, have no such hurdles to pass before obtaining full review of their assignments of error. Although these hurdles might be justifiable where indigents requested more substantial relief, they are too onerous where all that is at stake is the prepayment of a $25 filing fee and $250 security deposit. ”

“ Every officer of a bank which is not an authorized depositary, and which has not, therefore, given the required security, who knowingly receives any public money on deposit, is liable for embezzlement. ”

“ Although the section in question forbids loans or discounts by a bank on the security of its own shares of stock, it is argued that this inhibition does not extend to the case of deposits made by one bank with another. But a deposit is nothing but a loan of money, and is within both the letter and spirit of the provision. It is well known that country banks keep on deposit in New York, with bankers and merchants, a considerable amount of money for their own convenience, for which they receive more or less of interest. ”

“ If an account is opened to the grantee, he receives cheque books and certificates, but he is bound within a month to effect a deposit of 100 florins as security. Neither the law nor the regulations fix any maximum of deposit. The minimum of 100 florins will remain in the hands of the administration, without the person entitled to it being able to dispose of it as long as he has an account open in the Post Office. The adhesion to the clearing circulation is at once requested by the Post Office, of adherents to the cheque service. ”

“ Provided that no interest earned on any such deposit shall be paid to the proprietor concerned except in accordance with the provisions of sub-section (3) .
[Sub-s. (2) amended by s. 2 (b) of Act No. 2 of 1972.] (3) Subject to the provisions of sub-section (4) , interest earned on any amount so deposited shall be paid to the proprietor concerned at the expiration of each full period of five years from the date of deposit and whenever such amount may be refunded to the depositor. ”

“ Is there an individual in this broad land who, from the foundation of the National banking system to this day, ever hesitated a single moment to take a national-bank note at its face value, no matter in what corner of the country the note was issued? You know there is not. Is it not true that business men deposit their money, as a general thing, in national banks with a greater sense of security than they ever felt with regard to any other banking system? ”

“ Apart from questions which may arise under the national banking laws in the case of national banks, it is no longer open to doubt that a state, by a procedure satisfying constitutional requirements, may compel surrender to it of deposit balances, when there is substantial ground for belief that they have been abandoned or forgotten, Security Sav. Bank v. People of State of California, supra, certainly when the state acquires them subject to all lawful demands of the depositors. ”

“ If a bank account has not been added to or drawn upon by the depositor for more than 20 years, and no one claiming the money has, within that period, filed with the bank any notice showing his present residence, and the president or managing officer of the bank does not know that the depositor is alive, then the bank shall, upon entry of a judgment establishing these facts, deposit with the state treasurer the amount of the deposit and accumulations. The suit cannot be begun until after the expiration of the 20 years. ”

“ In the order of advantages which post-office savings' banks offer the depositor, we would rank next to their unquestionable security their peculiar convenience for deposit and withdrawal. Twelve months ago, a person might be the length of an English county distant from a bank for savings. Under the present arrangement, few persons will be a dozen miles distant from a money-order office, whilst nine-tenths of the entire community will find the necessary accommodation at their very doors. ”

“ But a bank having notice that a deposit is held by one for the use of or as security for another has only such right of set-off as is not inconsistent with the rights of the latter. Here, the banks had knowledge of the agreements, under which these balances constituted security for the advance made by the United States. By acceptance of the moneys furnished in accordance with the agreement, their right of set-off was made subject to the rights of the United States and the obligations of the contractor. ”

“ Whitney, the cashier of the Pacific Bank, sent the checks and drafts, amounting to $10,967.95, to the Security Bank on Monday, May 22, 1882, to be cleared by it, drawing for the $11,008.20 at the time, and receiving in return, on its own request, from the Security Bank, a negotiable certificate of deposit of that bank, payable to the order of Mr. ”

“ If the proceeding is strictly in rem the law is invalid, because it does not provide for such seizure of the res, nor give reasonable notice to depositors and claimants.
The proceeding is not one in personam-at least, not so far as concerns the depositor. The state does not seek to enforce any claim against him. It seeks to have the deposit transferred. The suit determines the custody (and perhaps the ownership) of the deposit. The state court likened the proceeding to garnishment, and thought that it should be described as quasi in rem. In form it resembles garnishment. ”

“ He has a right to borrow to the full amount of his deposit without giving security; if he desires to borrow a larger sum, he must furnish security in the manner we have described. The liability of the members is unlimited. The plan of limiting the liability to the amount of the capital deposited was tried at first, but it inspired no confidence, and the enterprise did not succeed till every member was made generally liable. Each member, on entering, is obliged to pay a small fee, which goes toward forming or maintaining a reserve fund, apart from the active capital. ”

“ There are none of the provisions that we have for the responsible safe-guarding of investments or valuable objects,—no fire-proof safes, no banks, no deposit-vaults. Security is best attained by concealment in unattractive and improbable receptacles, and by dividing and distributing the treasured objects. ”

“ The judgment to be entered requires the 'banks to forthwith deposit all such moneys with the state treasurer, to be received, invested, accounted for and paid out in the same manner and by the same officers as is provided in the case of other escheated property.' For a period of five years after entry of the judgment any person not a 'party or privy' to it may sue the state to recover the moneys so received. ”

“ INDICIA OF OWNERSHIP TO PROTECT SECURITY.— The term ``owner or operator ́ ́ does not include a person that is a lender that, without participating in the management of a vessel or facility, holds indicia of ownership primarily to protect the security interest of the person in the vessel or facility. ”

“ It is more reasonable to hold that the statute imposes upon the investment made by a corporate company in its plant a responsibility for torts committed by it or any subsequent corporate owner, and that that responsibility cannot be avoided by any mortgage or other encumbrance voluntarily placed upon the property. Security to the individual citizen is to go hand in hand with the franchise and privilege granted by the state. ”

“ The Bankers' Company, as a matter of law, had no right to build the western lines for the Rapid Company, or any lines except for itself, and no right, in any event, to build lines for another company, by using the proceeds of its own bonds in constructing such lines, leaving the holders of its bonds without any security. ”

“ OPERATIONAL FUNCTION.— The term ``operational function ́ ́ includes a function such as that of a facility or plant manager, operations manager, chief operating officer, or chief executive officer. `` (vi) SECURITY INTEREST.— The term ``security interest ́ ́ includes a right under a mortgage, deed of trust, assignment, judgment lien, pledge, security agreement, factoring agreement, or lease and any other right accruing to a person to secure the repayment of money, the performance of a duty, or any other obligation by a nonaffiliated person. ”

“ A bank that permits a depositor to keep a box of jewelry or silver in its vault for his accommodation, while absent from home and without receiving any compensation therefor, is not required to exercise the same degree of care as a safe deposit company whose chief business is to do such things and is paid for its service. ”

“ If the court or jury is convinced that the goods have been lost from the box, the burden of explanation as to how it happened would be upon the safe deposit company. The safe deposit company is liable for the acts of its servants and agents. ”

“ In the court below and on the argument here, the validity of the section under review was said to depend upon the relation between the company and the renter,-it being argued for the state that the contract was one of bailment where, on the death of the bailor, the Deposit Company, as bailee, was bound to surrender the securities to the owner or person having a right thereto, one of whom, in each case, was the state to the extent of its tax. On the other hand, the complainant insisted that if there was no possession in fact, there could be no possession in law ”

“ It is eminently right and proper that the State, through its bank commissioners or otherwise, should so far supervise the operations of savings banks as to see that they perform their part of their contract with depositors.
Safety, at best, is relative only; there is no absolute safety for the twenty-dollar piece a man has in his pocket, whether he is on the street, at his office, or by his own fireside. We are reminded that 'riches take to themselves wings' and that 'thieves break through and steal.' No savings bank can keep money on hand or deposit it or loan it with absolute safety. ”

“ Timid depositors have withdrawn their savings for the time being from national banks, trust companies, and savings banks; individuals have hoarded their cash and the workingmen their earnings; all of which money has been withheld and kept in hiding or in safe deposit box to the detriment of prosperity. ”

“ 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. ”

“ But nothing is farther from the truth. The Federal Government does NOT guarantee one cent of anybody's deposit in ANY bank— National, State or Private, anywhere, anytime—whether a member of F D.I.C. or not. But it does require ALL Banks belonging to F.D.I.C. to guarantee one another's depositors' deposits up to $5,000 for each depositor—A SORT OF MUTUAL INSURANCE. We are a small Bank, but mighty for our inches in a financial way. And we want to put all the force of all of our resources solely back of the deposits of our own depositors. ”

“ It has been, and is now, the policy of most states to require security for public funds whether deposited in state or national banks. The weight of judicial authority in the state courts has supported the doctrine that banks could pledge security for public deposits, but not for private deposits. [4]
The Senate Committee on Banking and Currency which made a favorable report on the Enabling Amendment gave information to the Senate in its report that millions of dollars worth of collateral had been pledged by national banks as security for public deposits. ”

“ And such banks would meet an incipient panic freely and generously; they would advance out of their reserve boldly and largely, for each individual bank would fear suspicion, and know that at such periods it must "show strength," if at such times it wishes to be thought to have strength. Such a system reduces to a minimum the risk that is caused by the deposit. If the national money can safely be deposited in banks in any way, this is the way to make it safe. ”

“ The deposits, at whatever office they may be made, can be withdrawn from any other office which transacts a savings bank business. The accounts are kept in London and all moneys are remitted to the headquarters, where it is handed over to the Commissioners for the Reduction of the National Debt, who invest the funds in public securities.
Deposits may be made as low as one shilling or multiples thereof, and the limit of deposits for an individual is $150 during one year or $650 in all. Charitable societies may deposit without limit. ”

“ 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 ”