Legal Definitions - depositor

A depositor is an individual or entity that places something of value, such as money, property, or documents, into the care or custody of another party. This act of placing is known as a "deposit."

Here are some examples illustrating the term:

• Banking: When a small business owner transfers their weekly earnings from their cash register into the company's checking account at a local bank, the business owner is the depositor. They are entrusting their funds to the bank for safekeeping and future transactions.

• Rental Agreements: Before moving into a new apartment, a college student pays a security deposit to their landlord. In this scenario, the student is the depositor because they are placing a sum of money with the landlord to cover potential damages or unpaid rent during their tenancy.

• Real Estate Transactions: A couple making an offer to purchase a home places an earnest money deposit into an escrow account managed by a neutral third party. The couple acts as the depositor by committing these funds to show their serious intent to buy the property, with the money held until the sale is finalized or cancelled.