An acknowledgment in writing given by a bank that it has received from the person named a stated sum of money on deposit.1 As a rule it draws interest, and may be either made payable on demand or at a specified time. If John Smith holds a " certificate of deposit " he cannot secure the money given over to the bank by drawing a check against it, but, instead, must either present his " certificate of deposit," or it may be presented by some one else after being properly indorsed by John Smith.

Savings bank-books are to all intents and purposes certificates of this kind.

Some banks reserve the right in their " certificates of deposit " or bank-books, to demand a certain notice, say sixty or ninety days, before payment. This right, however, is very seldom exercised except in case of money stringency or impending financial disaster.

Certificates of this nature may be used to transfer funds from one point to another, the same as a money-order or a cashier's check. The certificate may be issued directly to the party depositing the money, and by him made payable by indorsement to whomsoever he wishes, or may be drawn directly to the party to whom it is wished to transfer the money. It must be borne in mind, however, that whoever receives the certificate must present it in person before he can receive the money, or forward it properly indorsed for collection. In case a partial payment is desired upon a u certificate of deposit " the old one is cancelled, and a new one issued for the balance due.

1 The Courts of California declare a "certificate of deposit" to be a negotiable instrument and in substance and effect the same as a "promissory note."

A simple form of " certificate of deposit " is as follows:

Dartmouth Trust Company

No. .... Boston, Mass. . . . 19 . . $ . . . .

This is to certify, That there has been deposited with this


......................Dollars payable to......................or order in current funds, with interest at the rate of . . . per cent, per annum, upon surrender of this Certificate,

Countersigned Dartmouth Trust Company

............ By............