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The Legal Nature of Bank Deposits

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image of Review of Central and East European Law
For more content, see Review of Socialist Law.

The author examines the legal nature of rights that a person acquires upon transfer of money to a bank. In particular, a question arises who the owner of money held with a bank is. The author argues that a distinction is to be made between actual banknotes or coins that are transferred and a 'deposit', i.e., personal claim against the bank. The article describes the position of Lithuanian law in relation to the bank deposit and concludes that the main legal features of bank deposit are similar to those of a loan. Upon transfer of banknotes or coins to the bank, the latter normally acquires ownership thereof, and the depositor acquires personal rights against the bank. Although the depositor may also be regarded as the owner of such a claim, the object of such ownership is incorporeal and is not related to the banknotes or coins transferred to the bank.


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