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Simple English definitions for legal terms
depositor
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A quick definition of depositor:
A depositor is someone who puts money or other things of value into a bank account for safekeeping. This is called a deposit. There are different types of deposits, like a demand deposit that you can take out anytime, or a time deposit that you have to keep in the bank for a certain amount of time. When you make a deposit, you become a depositor.
A more thorough explanation:
A depositor is someone who puts money or other property into a bank account for safekeeping and convenience. For example, when you put money into your savings account, you are a depositor.
There are different types of deposits:
- Demand deposit: This is money that you can withdraw from your account at any time without telling the bank beforehand.
- Time deposit: This is money that you agree to leave in your account for a certain period of time or that requires you to give the bank notice before you can withdraw it.
- General deposit: This is money that is mixed with other depositors' money in the bank. You have a right to the money, but the bank doesn't have to give you the exact bills or coins you deposited.
- Special deposit: This is money that you deposit for a specific purpose and that the bank keeps separate from other deposits. The bank acts as a trustee for this type of deposit.
Other types of deposits include security deposits, which are given as a guarantee for the performance of a contract, and quasi-deposits, which are made when someone finds property and lawfully possesses it.
Overall, a depositor is someone who entrusts their money or property to a bank for safekeeping and convenience.