Enforcement—cash deposits
Enforcement—cash deposits

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Enforcement—cash deposits
  • Summary
  • Other enforcement resources
  • Forms of security and quasi-security over cash in an account
  • Charge
  • Assignment by way of security
  • Set-off
  • Enforcement options
  • Set off—security holder is the account bank
  • Security holder requiring payment—account held with third party
  • More...


The nature of the asset covered by the security often dictates the manner in which it will be realised to produce value for the security holder upon enforcement of security. Cash in a bank account is perhaps the simplest asset to realise as it can normally be either set off or appropriated against the secured debt.

Other enforcement resources

For issues a security holder should consider before enforcement of security, see Practice Note: Getting ready to enforce security.

For enforcement of different types of security, see the following Practice Notes: Enforcement—debentures and floating charges and Enforcement—fixed charges.

For enforcement over shares and land, see the following Practice Notes: Enforcement—security over land and Enforcing share security which deal with issues arising specifically on the enforcement of security over these two important asset classes.

Forms of security and quasi-security over cash in an account

There are a number of ways a creditor can create a security interest in (or have first recourse to) cash in a bank account and this depends upon whether the account in which the cash resides is held with the security provider or with a third party institution. See Practice Note: Taking security over cash deposits in bank accounts. A recap of the main types of security or quasi-security over cash in an account is given below.


A deposit made with a bank creates an intangible asset—a debt

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