Originally Posted by
Michael Joseph
In my opinion, A SPECIAL DEPOSIT invokes a Trust Relationship with the Banker such that the banker must hold with great care "in trust" the special nature of the deposit. Banker is Trustee of the Trust Account for the benefit of FIRST MIDDLE LAST [Estate].
In other words the funds cannot be co-mingled with other funds. For example, if you were to make a demand for Lawful Money and then deposit the instrument on account, then that deposit could be co-mingled with other types of moneys. And, therefore, the banker is in no way estopped from Fractional Reserve practices when a GENERAL DEPOSIT is created.
Therefore, in my opinion, either just Cash the Check and hold the notes without the banking system, or create a SPECIAL DEPOSIT account. The first option seems the most logical; however, with the recent PUSH by the banking establishment to put DEBIT cards in the hands of the Acct. Holders, I think the system is pushing hard towards an electronic means of exchange. Therefore, a SPECIAL DEPOSIT Trust Account may be prudent.
Fee Simple is Absolute Title.