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bank

bank definition - legal

A financial institution, whether incorporated or not, with a substantial portion of its business consisting of receiving deposits and maintaining savings accounts and checking accounts. Most also issue loans and credit, exchange currencies, transmit funds, and deal in negotiable bonds and securities issued by corporations and the government.

commercial bank

A bank, often organized as a public corporation, that offers the broadest range of services allowed by law, but that is required to keep a larger percentage of its deposits on reserve than is required of savings and loan associations and savings banks.

savings and loan association

A financial institution, often organized and operated like a bank, with a primary purpose to make loans so that individuals can purchase or construct homes, but that also provide various banking services. See also building and loan association.

savings bank

A bank that receives deposits, maintains savings accounts (from which funds can usually be withdrawn only after a set period of time or advance notice), pays interest on them at usually higher rates than commercial banks, and makes certain loans. However, a savings bank cannot maintain checking accounts and is allowed to invest only in certain types of corporate and government bonds and securities.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.