In Glass v. Nebraska State Bank, the court found that the plaintiff’s deposit was a general deposit creating the relation of debtor-creditor between the bank and depositor. By virtue of the agreement creating a general deposit, the bank could pay or transfer the funds on deposit only on the authorization of the depositor. The defendant bank could not prove that they had received any authorization of the depositor to transfer the funds on deposit, and therefore, the court held the bank liable for misapplication of funds.

Special and General Deposits … A. Definitions … B. Glass and the Laws of Special and General Deposits … C. Special and Specific Deposits—Current Practices

Parol Evidence Rule as Applicable to Special and General Deposits

Oral Authorization of a Depositor to Transfer Funds