Simple English definitions for legal terms
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A bank is a place where you can keep your money safe and get help with financial things like borrowing money or exchanging currency. It's like a special store that is allowed to do these things because the government says it can. There are different types of banks, but they all have to follow rules to make sure they are doing things the right way.
A bank is a financial institution that is licensed to receive deposits, make loans, exchange currency, issue money, transmit funds, and exercise fiduciary powers. It is a quasi public institution that is incorporated and engaged in the business of financial transactions under the laws of the United States or any state.
There are different types of banks, including:
A bank is considered a "creature of statute" and operates by legislative grace. This means that the right to carry on a banking business through the agency of a corporation is a "franchise" that is dependent on a grant of corporate powers by the state.
For example, if you deposit money into a checking account at a retail bank, the bank will hold your money and allow you to withdraw it as needed. The bank may also charge you fees for certain services, such as overdraft protection or ATM usage. If you take out a loan from a commercial bank, the bank will provide you with the funds you need and charge you interest on the amount borrowed. Investment banks may help companies raise capital by underwriting securities offerings or advising on mergers and acquisitions.