depositary


Also found in: Dictionary, Thesaurus, Financial, Encyclopedia, Wikipedia.
Related to depositary: Depositary bank, Depositary receipt
See: comptroller, receiver, trustee

DEPOSITARY, contracts. He with whom a deposit is confided or made.
     2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. Being a bailee without reward, the depositary is bound to slight diligence only, and he is not therefore answerable except for gross neglect. 1 Dane's Abr. c. 17, art. 2. But in every case good faith requires that he should take reasonable care; and what is reasonable care, must materially depend upon the nature and quality of the thing, the circumstances under which it is deposited, and sometimes upon the character and confidence, and particular dealing of the parties. See 14 Serg. & Rawle, 275. The degree of care and diligence is not altered by the fact, that the depositary is the joint owner of the goods with the depositor; for in such a case, if the possessor is guilty of gross negligence, he will still be responsible, in the same manner as a common depositary, having no interest in the thing. Jones' Bailm. 82, 83. As to the care which. a depositary is bound to use, see 2 Ld. Raym. 900, 914; 1 Ld. Raym. 655; 2 Kent's Com. 438; 17 Mass. R. 479, 499; 4 Burr.. 2298; 14 Serg. & Rawle, 275; Jones' Bailm. 8; Story on Bailm. Sec. 63, 64.
     3. The depositary is bound to return the deposit in individuo, and in the same state in which he received it; if it is lost, or injured, or spoiled, by his fraud or gross negligence, he is responsible to the extent of the loss or injury. Jones' Bailm. 36, 46, 120; 17 Mass. R. 479; 2 Hawk. N. Car. R. 145; 1 Dane's Abr. c. 17, art. 1 and 2. He is also bound to restore, not only the thing deposited, but any increase or profits which may have accrued from it; if an animal deposited bear young, the latter are to be delivered to the owner. Story on Bailm. Sec. 99.
     4. In general it may be laid down that a depositary has no, right to use the thing deposited. Bac. Abr. Bailm. D; Jones' Bailm. 81, 82; 1 Dane's Abr. c. 17, art. 11, Sec. 2. But this proposition must be received with many qualifications. There are certain cases, in which the use of the thing may be necessary for the due preservation of the deposit. There are others, again, where it would be mischievous; and others again, where it would be, if not beneficial, at least indifferent. Jones' Bailm. 81, 82; Owen's R. 123, 124; 2 Salk. 522; 2 Kent's Com. 450. The best general rule on the subject, is to consider whether there may or may not be an implied consent, on the part of the owner, to the use. If the use would be for the benefit of the deposit, the assent of the owner may well be presumed; if to his injury, or perilous, it ought not to be presumed; if the use would be indifferent, and other circumstances, do not incline either way, the use may be deemed not allowable. Jones' Bailm. 80, 81; Story on Bailm. Sec. 90; 1 Bouv. Inst. n. 1008, et seq.

References in periodicals archive ?
With an unrivalled commitment to helping securities issuers succeed in the world's rapidly evolving financial markets, the Bank delivers the industry's most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services.
The Bank of New York expects approximately 200 new Depositary Receipt programs will be established by year end.
A Depositary Receipt (DR) represents the local shares of a company and can be structured as either an American Depositary Receipt (ADR) or a Global Depositary Receipt (GDR).
Depositary Receipt capital raisings were completed for the first time by companies from Turkey, Thailand and China.
It is also one of the leading depositaries for American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), and, through a fully integrated network of specialist offices worldwide, provides domestic custody services in 28 securities markets.
The redemption of the 3,714,000 depositary shares reflects the simultaneous redemption of 928,500 shares of Series A conversion preferred stock.
Each common share Petrobras American depositary share (CUSIP 716 54V 40 8) represents four common shares, and each preferred share Petrobras American depositary share (CUSIP 716 54V 10 1) represents four preferred shares.
The total number of shares of common stock deliverable upon redemption of the Depositary Shares is 2,025,024.
The Bank of New York is the world's largest depositary for American and Global Depositary Receipt facilities, which allow non-U.
The company also expects to submit to its shareholders for approval proposals to effect a one-for-six reverse split of the company's American Depositary Shares and an increase to the company's equity incentive plan reserve of approximately 8.
TI had noted in its recent first quarter report to stockholders that the higher the common stock price, the more likely the company would redeem depositary shares.
Akbar Poonawala, Head of Global Equity Services at Deutsche Bank said, "New Oriental's Depositary Reciepts program mandate is a significant win for us in the PRC.