Professional Documents
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Kinds of Deposits Bilar, William Karol Benedict W.
Kinds of Deposits Bilar, William Karol Benedict W.
DEPOSITING FUNDS
- The function is similar to that of a loan, where it shall not be perfected until the
delivery of the object of the contract.
- The duty of the bank over the amount shall commence only from delivery of the
amount by the depositor.
I. THE PROCESS
- As decided by the Supreme Court in Philippine Bank of Commerce v CA
1. Deposit slips are prepared and signed by the depositor or an agent
2. Indicates therein the current account number to which the deposit is to be
credited
3. Name of depositor or current account number
4. Date of deposit
5. Amount in deposit either in cash or checks
6. Original slip remains in the bank and the duplicate is given to the depositor
- “A bank was likewise made liable when it accepted withdrawal slips for deposit
that turned out to be unfunded. The face that withdrawal slips were honored in
the past does not excuse it from liability” (Firestone v CA)
WITHDRAWAL OF FUNDS
- When cash is deposited in the account, the depositor can withdraw the amount
at any time provided he complies with the prescribed procedure
- However, a deposit made by a check cannot be withdrawn until it has been
cleared
- Similarly with Drawings and withdrawals against uncollected deposits is also
prohibited Unless, the same is made against a uncollected treasurer’s check,
managers check, cashier’s checks, treasury warrants, and postal money orders
and duly funded “on us” which may be permitted at the discretion of the bank.
I. METHODS OF WITHDRAWAL
1. Encashment Slip
Commercial documents normally used by merchants and
businessmen to promote or facilitate trade
It allows for the person whose name and signature appears
thereon to enchash a check and withdraw the amount indicated