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Depositor/Dispositee. This guide is brought to you by Notary public London

Goldsmiths retained jewellery for safekeeping, Issued receipts. Sometimes receipts traded. Also lent money on strength of items deposited. A person who is making a deposit with the bank is known as a depositor. The depositor is the lender of the money which will be returned to him/her at the end of the deposit period.

The person with whom something is deposited is the Dispositee

Debtor and creditor, when depositor pays money into bank ceases to be depositor’s property becomes property of bank to do as it wishes

Under the Consumer Credit Act 1974 s75 deals with connected lender liability. The premise of this act is that breaches of a contract by sale by trade seller will have implications for the creditor in terms of the back to back consumer credit or consumer hire purchase. It directs that if a debtor

This relationship was described by Lord MacKay in Royal Bank of Scotland v Skinner case

Relationship of customer and banker is neither a relation of principal and agent nor a relation of a fiduciary nature, trust, or the like, but a simple relation – it may be one sided, or it may be two-sided – of creditor–debtor. The banker is not, in the general case, the custodian of money. When money is paid in, despite the popular belief, it is simply consumed by the banker, who gives an obligation of equivalent amount”.

That statement accurately reflects the position under English Law as decided in Foley v Hill above. Where the customer has more than one account (one in debit and one in credit) and the banker has an exercisable right of set-off between the accounts, it is the net balance (if any) which the bank is liable to repay to the customer. In the circumstances once money, whether representing the proceeds of a benefit payment or any other source, is credited to a bank account it simply becomes a debt due by the bank to the account holder and it is not necessary to identify the source of the funds credited to the account.

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