Chapter VI. Books And Records (continued)
Description
This section is from the book "Banking Practice And Foreign Exchange", by Howard McNayr Jefferson. Also available from Amazon: Banking Practice And Foreign Exchange.
Chapter VI. Books And Records (continued)
55. Certificates Of Deposit Defined And Illustrated
A certificate of deposit is a receipt given by a bank for money deposited, payable to the order of the depositor, or some other person designated by him, on surrender of the certificate properly endorsed. It is a specialized form of deposit not subject to check. Certificates of deposit are issued payable on demand, on a given number of days' demand, and on time. They are convenient forms of deposit for money not needed for current use. If it is known that the money will not be required for a long time, a higher rate of interest may be allowed than on a demand certificate. The chief use is for deposits of trust funds. Figure 38 on page 87 shows a certificate payable on demand, Figure 39 on page 87, one payable at ten days' demand, and in Figure 40 on page 88, is shown one payable at a future date. Figure 41 on page 88, shows one with interest option. Under the laws of the State of New York, certificates of deposit not payable within thirty days may be deducted from the gross deposits of trust companies when figuring required reserve, provided the certificate shows the date of issue and the date when due. An understanding, written or implied, that the certificate is subject to thirty or more days' notice will not suffice.
In a small bank the certificates should be bound in a book with a stub and the cancelled certificates pasted to the stub when paid. In a large bank, having very many to issue, it will be found more advantageous to have the certificates made up in pads and numbered.
Certificate Of Deposit.
First National Bank.
$......... Wellsville, N. Y ,.........19..
...................................ha.. deposited in this Bank
........................................................Dollars payable to the order of..........................................
on return of this certificate properly endorsed.
No........ ..............................Cashier
Figure 38. Certificate Of Deposit.
Certificate Of Deposit.
First National Bank $........ Wellsville, N. Y.,..............19..
..................................ha.. deposited in this Bank
........................................................Dollars payable, ten days after demand, to the order of....................
on return of this certificate properly endorsed.
No.......... ..........................Cashier.
Figure 39. Certificate Of Deposit.
Certificate Of Deposit
The Oregon County Trust Company.
Nyack, N.Y.,................19..
$..........
........................ha... deposited in this Company
........................................................Dollars payable................19___to the order of....................
on return of this Certificate properly endorsed.
No.......... ..........................Secretary.
Figure 40. Certificate Of Deposit.
Certificate Of Deposit.
First National Bank.
Wellsville, N. Y.,............19..
..................................ha. . . deposited in this Bank
........................................................Dollars payable to the order of......................in current funds on return of this Certificate properly endorsed with interest at 3% per annum if left........months.
Interest ceases after one year.
No.......... ..........................Cashier.
Figure 41. Certificate Of Deposit.
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