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Simple English definitions for legal terms
Suitors' Deposit Account
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A quick definition of Suitors' Deposit Account:
Suitors' Deposit Account: A special bank account where people who go to court to settle a legal dispute can deposit their fees. The money is invested in government securities that earn interest, unless the person who deposited the money wants it invested differently. This account was created by a law called the Chancery Act of 1872.
A more thorough explanation:
A Suitors' Deposit Account is an account where fees paid by individuals who file a case in the Court of Chancery are deposited. According to the Chancery Act of 1872, these fees are invested in government securities that earn an interest of 2% per annum. The investment is made on behalf of the individual who paid the fees, unless they instruct otherwise.
- John filed a case in the Court of Chancery and paid a fee of $500. This fee was deposited in a Suitors' Deposit Account and invested in government securities that earned an interest of 2% per annum. If John does not give any instructions, the interest earned will be credited to his account.
- Emily filed a case in the Court of Chancery and paid a fee of $1000. She instructed that the fees should not be invested in government securities but should be kept in the account as cash. In this case, the fees will not earn any interest.
The examples illustrate how the fees paid by individuals who file a case in the Court of Chancery are deposited in a Suitors' Deposit Account and invested in government securities. The interest earned on the investment is credited to the account of the individual who paid the fees, unless they instruct otherwise.