Bank Accounts, Deposits and Account Types
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Definition: Checking Account
A checking account (current account) is an irregular deposit contract for money, with additional service agreements provided by the cash custodian. Under the current account contract, the bank, savings bank, or credit union receives funds on behalf of the owner of the account, provides custody, and agrees to make payments according to instructions for amounts up to the balance.
Irregular (Deposit Ownership) Contracts
An irregular deposit is one in which the depositary (receiver) acquires ownership of the thing deposited and agrees to return to the depositor (person who delivered it) at the expiration of the contract, otherwise the same nature and value. In irregular deposits the depositary becomes owner of the funds... Continue reading "Bank Accounts, Deposits and Account Types" »