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1 Citation Some people think that I should not worry about the bank recording my deposit as an asset on their balance sheet. They do not under the nature of modern banking law. When a person deposits money in a bank, they change from being an owner of an asset into a creditor of the bank. They give up a property right in exchange for a contractual right. They swap the ownership of an asset for a promise to receive repayment on demand.Owning an asset is generally better than being a creditor. If I get a 3 y, technorati.com
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1 Citation If a deposit in a cheque account is a bailment, then the bank could not record the cash as an asset on its balance sheet. It could not use the cash for its own purposes.During the 19th century, the British Law Lords ruled that a demand deposit is not a bailment. This decision has since between adopted by courts all over the world.In a case in 1811, Sir William Grant ruled that money paid into a bank is not a bailment, but a loan. The banker is not a bailee, but a debtor (Carr v Carr). In a subse, technorati.com
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