Instead of acknowledging the receipt of a deposit by an entry in a pass-book, a bank sometimes issues an obligation called a "certificate of deposit," by which it agrees to repay the money to the depositor, either on demand, without interest, or with interest if left a certain time, interest being forfeited if payment is demanded sooner, or at the end of a certain period, and not before, with interest at a stated rate.

The first two named are called "demand certificates," and the last a "time certificate," and are usually of the following form.:

1. Demand certificate:

2. Demand certificate with interest option:

3. Time certificate with interest:

A bank issuing certificates in the two forms first named is obliged to pay same whenever presented, but is under no obligation to pay a "time" certificate until the expiration of the period named in it.

A person to whose order a certificate is made payable may sell it or pass it on to some other party for collection by endorsing it, and when presented by such party, properly endorsed, should be paid by the bank issuing same, if due by its terms.