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deposits and money

DEPOSIT, a term of wide meaning in law, but especially applied to money paid as an earnest or security for the performance of a contract; also to money or goods belonging to one person entrusted to the safe-keeping of an other, to be kept without fee, and to be re delivered on demand. When such a deposit is made to a bank or trading company, interest, according to agreement, is generally paid on it. The person who makes the deposit is called the depositor and the person who receives the de posit is called the depositary. An irregular deposit arises where one deposits money with another for safe-keeping, in cases where the latter is to return, not the specific money de posited, but an equal sum. A quasi deposit occurs where one comes lawfully into possession of the goods of another by finding. By the civil law, deposits are divided into two classes, neces sary and voluntary. The first class is where

the depositor is compelled by some sudden emer gency, such as fire or shipwreck, to confide his property to some one, without having oppor tunity for choosing his depositary. The sec ond class is where the deposit is made by the mutual consent of the parties. Besides such deposits of money received by banking or com mercial companies with a view to employing it in their business, a merchant or commercial company frequently deposits with a bank docu ments, such as deeds or bonds, as security for the payment of a loan. The civil law again divides deposits into simple deposits and seques trations: the former is when there is but one party depositor (of whatever number com posed) having a common interest; the latter is where there are two or more depositors, having each a different and adverse interest.