A security deposit receipt is a written undertaking issued by a branch of a bank to pay a certain sum of money to a specified person or organisation. A security receipt is issued and paid by the same branch of a bank and as such the same. The person or the organization in whose favour it is issued is known as beneficiary. It is sold to the applicant on payment of value who may or may not be our customers and is called the purchaser. The person or the organisation in whose favour it is issued is known as beneficiary it is sold to the applicant on payment of value who may or may not be our customer and is called the purchaser. A security deposit receipt may be sold to any person who desires to offer the same in payment of arnest money, security deposit and other dues to Government agencies autonomous bodies, companies, local authorities etc. in the course of business and other dealings.
Characteristics & payment:
1. It should be paid to the beneficiary after proper identification or it may be credited to his account & it is not transferable.
2. On the application presenting his receipt purporting to be discharged by the beneficiary, payment of the amount will be effected to the applicant.
3. The bank will not be required to examine the genuineness or otherwise of the beneficiary’s discharge on the security receipt unless the beneficiary has furnished to the bank a specimen of his signature duly attested by an authorized officer of the bank.
4. The bank reserves the right to effect payment of the amount of this security deposit to the applicant on his surrendering this receipt to the bank even without beneficiary’s discharge.
1. It should be paid to the beneficiary after proper identification or it may be credited to his account & it is not transferable.
2. On the application presenting his receipt purporting to be discharged by the beneficiary, payment of the amount will be effected to the applicant.
3. The bank will not be required to examine the genuineness or otherwise of the beneficiary’s discharge on the security receipt unless the beneficiary has furnished to the bank a specimen of his signature duly attested by an authorized officer of the bank.
4. The bank reserves the right to effect payment of the amount of this security deposit to the applicant on his surrendering this receipt to the bank even without beneficiary’s discharge.
Thanks for sharing this informative post with us. You provided some helpful details with the information in this article. Have a great rest of your day.
ReplyDeleteLawyer Philadelphia