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Deposit Receipt

person, money, depositor, banker, receipts and paid

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DEPOSIT RECEIPT. A person may de posit money with a banker and receive therefor a receipt called a deposit receipt. The money may be withdrawable on demand, or at so many days' notice, or it may be deposited for a fixed period. There is some diversity in the wording and form of the deposit receipts of different banks. The following are specimens of some of the forms used N.B.—Where any sum on Deposit account is to be handed over to any person other than the Depositor, or where any sum is withdrawn from a joint account, a cheque must be drawn by the Depositor or De positors in favour of the person or persons by whom the money is receivable. Due notice of withdrawal must first be given, and the Deposit Receipt lodged with the Bank for cancellation or alteration.

Received the amount of the within named Deposit.

Date A deposit receipt is not a negotiable instrument, capable of being transferred by indorsement, and a banker will be liable if he pays it to a person who has no right to the money. Such words as " not trans ferable " or " can be paid to no one but the person in whose favour it is granted." are printed upon the face of many deposit receipts. \Vhere a banker pays a deposit receipt to a person other than the depositor, even if it is duly indorsed by the depositor, he incurs risk in so paying. May, C. J., in his judgment in Moore v. Ulster BanA (1877. 11 Jr. R.C.L. 312), said that " the holder. by merely writing his name on the docu ment and delivering it to another, confers no legal right on the person to whom he gives it." Where a depositor is unable to attend personally at the bank to withdraw money which he has upon deposit receipt, he should, when he desires another person to obtain the money for him, send a letter authorising the banker to pay it to that person. Also, where there are several depositors, and the receipt requires to be discharged by all, if the money is to be paid to one of them, he should be furnished with a letter of authority signed by the others and the receipt should be indorsed by all of them. To be strictly in order, the same precautions should be observed if interest alone is to be paid to one of several depositors, or to a person other than the depositor. Deposit receipts are

frequently received through another banker with a request to pay over the amount. In such cases, authority to do so should be obtained from the depositor, or the indorse ment should be confirmed by the presenting banker.

Some deposit receipts have a printed form of cheque on the back such as : " To the N. & Y. Bank, Ltd. ; Pay to Self or Bearer i en pounds and interest." Such a form seems somewhat at variance with the nature of a deposit receipt. In In re Dillon (1890, 44 Ch. D. 7(3), Lord Justice Cotton said with reference to a form of this kind : " I come to the conclusion that, in order to preserve convenient evidence when the money is withdrawn, they put the form of cheque on the note, so that when filled up and signed it may be preserved as a receipt, and not that they make it a part of the bargain that they will not pay unless this cheque is signed and produced." Although a deposit receipt is not transfer able, the debt itself is capable of being :signed by the depositor. The assignment must be in proper form, and, in order to be effective, notice of it must be given to the banker.

In some banks when only a portion of the sum deposited is withdrawn, an indorsement is made upon the receipt stating the amount which has been paid, or, if interest alone has been paid, the date up to which it has been given ; but the usual and more satisfactory way is that the deposit receipt should be renewed upon each transaction, the old one being discharged and a fresh one drawn.

\lany receipts have a form of discharge printed upon the back, e.g. " Received the within mentioned sum and interest, this 1910." As simple interest only is allowed upon deposit receipts, depositors usually bring in the receipts half yearly or yearly to have the interest added, which is done by discharging the old receipt and giving a new one for the amount plus the accrued interest.

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