safe custody

Quick Reference

A service offered by most UK commercial banks, in which the bank holds valuable items belonging to its customers in its strong room. These items are usually documents, such as house deeds and bearer bonds, but they may also include jewellery, etc. The bank is a bailee for these items and its liability will depend on whether or not it has charged the customer for the service and the terms of the customer's own insurance (in the case of jewellery, etc.). In a safe deposit the customer hires a small lockable box from the bank or safe-deposit company, to which access is provided during normal banking hours. The customer keeps the key to the box.

Subjects: Financial Institutions and Services.

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