Bank of Commerce v. Harrison

Citations

• 11 N.M. 50
• 66 P. 460

Syllabus

<p>SYLLABUS.</p> <p>1. A certificate of deposit, like a deposit credited in a passbook, represents money actually left with tbe bank for safe-keeping; it is to be retained by tbe bank until demanded by tbe depositor, and tbe statute of limitations does not begin to run against it until presentation and demand of payment.</p> <p>2. Tbe rule wbicb applies to negotiable instruments bas no application to a certificate of deposit until tbe certificate bas been endorsed and transferred by tbe original bolder. Then a new relation arises between all parties, which must be tested by tbe rules and customs of the law merchant.</p> <p>3. Tbe time limit in a certificate of deposit fixes tbe time tbe deposit must remain with tbe bank before tbe depositor will be entitled to interest thereon. If a depositor withdraws bis deposit before tbe expiration of tbe time limit, be thereby waives all claim of interest. It is within tbe power of tbe bank, after tbe expiration of tbe time limit, to call in a certificate of deposit, or to reduce tbe ráte of interest agreed to be paid thereon, by proper notice to tbe bolder of tbe certificate.</p>