Deposit

The legal institution of deposit serves to ensure the proper performance of an obligation.

The debtor may be interested in the performance of an obligation, but the creditor is reluctant to accept the performance or his whereabouts are unknown to the debtor. The debtor may also become unaware of who the creditor is and to whom he must perform the obligation.

If the creditor is reluctant to accept the performance or his whereabouts are unknown, the debtor is entitled to keep the subject of performance in court or at a notary and deposit the money or securities into the notary’s deposit account. In this case, the obligation is considered fulfilled and terminated. Thus, deposit replaces the performance of the obligation provided for by the contract, which is why it is called a surrogate for performance.

Deposit is the debtor’s right, not an obligation. The debtor can choose to terminate the performance of the obligation by depositing it.

It is worth noting that when depositing, the subject of performance must be suitable for storage and not perishable. Depositable items include: money, promissory notes, checks, government bonds and other credit and/or securities and valuables.

Accordingly, for depositing, it is necessary that the subject of performance be depositable and one of the grounds for deposit must exist.

The debtor may return the stored object before it is accepted by the creditor. The legal consequence of this action is that in the event of such an action, storage cannot be considered completed and the obligation is fulfilled and terminated.

It is also worth noting that the debtor has the right to make a reservation in advance that he refuses to return the stored object.

If the creditor refuses to accept the stored object, then in such a case the debtor is entitled to return the transferred object. It is noteworthy that when the creditor refuses to accept the performance, this refusal gives the debtor the right to return the object of performance.

In addition, it is worth considering that the court or notary keeps the object of performance for a period of up to three years. If the creditor does not receive the object during this period, the debtor is notified of this and is required to return the transferred object. If the debtor does not receive the object within the period required for return, then it will be considered state property.