special deposit

A deposit delivered into the possession of a bank to be kept separate and distinct from the general assets of the bank and to be returned or delivered intact on demand, the title to the thing deposited remaining in the depositor. 10 Am J2d Banks § 360. The placing of specific money or property in the possession of a bank under terms such that the bank is under obligation to return the identical thing deposited to the depositor, Keyes v Paducah & I. R. Co. (CA6 Ky) 61 F2d 611, 86 ALR 203, no relation of debtor and creditor between the bank and the depositor being created. Bassett v City Bank & T Co. 115 Conn 1, 160 A 60, 81 ALR 1488. The state courts do not agree as to whether a deposit made in a bank for special purposes constitutes a trust fund in the hands of the bank, but the federal courts hold that if the deposit is made as a general deposit, the fact that it is made for the purpose of providing a credit which is to be used thereafter for a special purpose does not give it the status of a trust fund in the hands of the bank. Santee Timber Corporation v Elliott, 7 F2d 179. See special account.