Nonpersonal time deposits refer to financial accounts or deposits that are not owned by individual persons. Specifically, these deposits are either transferable time deposits or accounts that hold funds for a depositor who is not a natural person, such as corporations, partnerships, or government entities. This definition is established under 12 USCS § 461 (1) (D).
Nonpersonal time deposits are commonly used in banking and finance. They play a crucial role in how businesses and organizations manage their funds. Legal professionals may encounter this term in contexts involving corporate finance, banking regulations, and investment strategies. Users can manage related paperwork and agreements using legal templates from US Legal Forms, which are designed to simplify these processes.
Here are a couple of examples of abatement:
Example 1: A corporation opens a nonpersonal time deposit account to earn interest on its reserve funds. The account is held in the company's name, and the funds are not accessible by individual employees.
Example 2: A partnership establishes a nonpersonal time deposit to secure funds for future business investments (hypothetical example).
The primary legal reference for nonpersonal time deposits is 12 USCS § 461 (1) (D). This statute outlines the definition and context in which these deposits are recognized within the banking system.
| Term | Definition | Key Differences |
|---|---|---|
| Personal Time Deposit | A time deposit held by an individual person. | Owned by a natural person, unlike nonpersonal deposits. |
| Transferable Time Deposit | A time deposit that can be transferred to another party. | Can be a type of nonpersonal time deposit but not all nonpersonal deposits are transferable. |
If you are considering opening a nonpersonal time deposit for your business or organization, it is advisable to consult with a financial advisor or legal professional. They can guide you through the process and help you understand the implications of such deposits. Additionally, you can explore US Legal Forms for templates that can assist you in managing the necessary documentation.
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Nonpersonal time deposits can be held by corporations, partnerships, and government entities.