Witnesses

Know All Men by These Presents

That

obligor

held and firmly bound unto The Union Trust Company of Pittsburgh, a corporation under
the laws of Pennsylvania in the sum of

Dollars,
lawful money of the United States, to be paid to the said The Union Trust Company of Pittsburgh,
its certain attorney, successors or assigns; to which payment well and truly to be made...
do bind
heirs, executors and administrators, and every one of
them, jointly and severally, firmly by these presents.

said The Union Trust Company of Pittsburgh, and desires to receive from said Company the sum
DOLLARS,

of

on account of money deposited in said Company to the credit of said depositor, shown by
Deposit Book No..
and on account of interest declared thereon, without the

production of said Deposit Book, and declares that said Deposit Book is lost;

$.

And Whereas, the said Company has now paid to said depositor the said sum of
upon the giving of this bond,

Now the Condition of this Obligation is such,

That if it shall at any time hereafter appear that said.

was not entitled to receive said
sum of money so paid to
or any part thereof, or that any other person than said
depositor was entitled to receive said sum of money or any part thereof, and if the above
bounden obligor_,- heirs, executors or administrators, do thereupon pay the said last
mentioned sum of money and interest thereon from the date hereof to the said The Union
Trust Company of Pittsburgh, its successors or assigns, and if the above bounden obligator__,
heirs, executors or administrators, do at all times hereafter save, defend, indemnify
and keep harmless the said The Union Trust Company of Pittsburgh, its successors and assigns,
from all claims, demands, suits, payments, costs, charges and expenses whatsoever by reason
or on account of said payment to said above named depositor, or by reason of its refusal here-
after to pay the said sum of money or any part thereof to any other person or persons, then
this obligation to be void, or otherwise to be and remain in full force and virtue.

Sealed and delivered in presence of

SEAL

SEAL

OBAL
so

Indemnity bond to protect a bank when it returns a savings deposit after the loss of the pass book.

COMPUTATION OF INTEREST

45

bank's receipt for all deposits and should be carefully preserved. No money can be deposited, or withdrawn, without it, although in exceptional cases a bank may take a deposit and issue a receipt to be canceled on presentation of the pass book. If the book is lost, immediate notice must be given to the bank, so that no one may use the pass book fraudulently to withdraw the funds from the bank. After two weeks' notice of loss, if loss is proved, and an indemnity bond is given to protect the bank, another pass book will be issued. The bank may waive the indemnity bond, but its right to it is clear, for if the depositor sold his account, as he can do in some states, and delivered his pass book to Smith, the bank must pay Smith, no matter if the depositor had claimed to have lost his pass book. Unless the pass book is known to have been destroyed, the safe thing to do is to have the account closed and reopened under another name or number.

42. Computation of interest. In Pittsburgh, Pennsylvania, interest is counted upon each deposit from the first or fifteenth day of each month subsequent to the deposit. A deposit on Jan. 10 draws interest from Jan. 15; a deposit on Jan. 24, from Feb. 1. Interest is calculated halfyearly, say, Jan. 1 and July 1, or March 1 and Sept. 1. If the depositor does not collect the interest, it is entered as a deposit. A withdrawal is regarded as a withdrawal of the first deposits and interest accrued on that amount since the last interest date is lost. Suppose a customer deposits $12 on the 28th day of each month from Jan. to June. On June 15 he withdraws $15. Interest is not counted upon the Jan. and one-fourth of the Feb. deposits. Interest at 4% on $9 from March 1 to July 1, four months, is 12 cents. The March deposit draws interest for three months, the April for two months, and the May for one month. The total interest to be paid or credited is 36 cents. In Columbus, Ohio, several different plans of com

puting interest are used. In one plan the interest is compounded quarterly by calculating it on the lowest balance during the quarter. By another plan the interest is calculated semi-annually upon the average monthly balance. By another plan the interest is computed for each quarter upon the lowest balance for the quarter and the account is credited twice each year for the interest earned during each of the two preceding quarters.

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43. Withdrawals. A savings deposit is intended as a time deposit though, technically, part of it is a demand deposit. It will probably remain for a long time, anyhow

Withdrawal notice. Banks in Pennsylvania require savings depositors to give notice of any withdrawal of more than $100.

until the half-yearly interest periods are passed; but the hour of need-the big stimulus for saving- may occur at any moment. If the amount needed is small, no notice of withdrawal is necessary. If the amount needed is large and notice is required, it is easy to arrange a loan with the pass book as security (see 46). It may pay to do this when the interest period is at hand. Suppose $100 is needed. In two weeks, interest will be due. At 4% the

WITHDRAWAL OF DEPOSITS

47

$100 has already earned $1.83, which will be lost. A demand note can be given with the pass book as security, the loan being secured at a cost of 25 cents to a dollar. Some banks have a minimum charge of one dollar for a loan. In others it is 50 cents. It takes as much work to make a loan of $10 as one of $1000. In most states while banks are permitted to require a sixty-day notice of withdrawals, the banks make payments on demand without any notice. The following are the withdrawal rules of Pittsburgh banks. Less than, or exactly $100 may be withdrawn without notice, but only one withdrawal is allowed within two weeks, and no account can be closed unless it has been open at least one month. Notice of withdrawal for any amount over $100 is required in all cases at all times. If the money is not withdrawn within ten days after it is due, the notice will be canceled; and if the amount is again wanted, a new notice must be given. Placing a notice of withdrawal does not stop the interest. A notice may be filed four weeks prior to an interest date to withdraw $400 on the interest date. On the interest date $400 and the interest on that and the rest may be withdrawn.

The following are the notices to be given: For more than