Deposit agreements are used for a large number of benefit programs such as IRAs and health savings accounts. As a general rule, the agreement describes the payment by the person who is paid to the custodian, who will ensure that the funds are held with a bank or other financial institution. Depending on the nature of the account, the custodian may not be held liable if the employer does not provide the worker with the corresponding means for the benefit. For example, if a business does not contribute to an old age savings plan, any losses are not the responsibility of the custodian. If Article 8 is repealed and the brokerage account is considered in accord with the principles of the common law, it is possible to construct the collection of brokerage accounts in the intermediate deposit chain as a collection of directly directed agencies. According to this legal theory, any investment position on a given category that appears on the brokerage`s omnibus investment account is a trust fund for clients participating in that position. The extent to which the application of such a theory would be limited by Section 8 and the Securities Investor Protection Act in future litigation is not obvious and perhaps irrelevant in practice because of the degree of detail of the above legislation. [Citation required] A career retirement plan would be an example of police custody. Many, if not most, companies charge a third party to manage such plans in order to recover payments from employers and workers, to invest the funds and to pay benefits.
With deposit contracts used for benefit programs, the custodian collects staff funds through regular wage deductions and invests the money; all fees associated with these agreements are generally less than the fees that would be charged to individual investors. A deposit account is a financial account (for example. B a bank account, trust fund or brokerage account), created for the benefit of a beneficiary and managed by a responsible person, known as a legal guardian or custodian, who has a fiduciary duty to the beneficiary.  U.S. portfolio account contracts under Article 8 of the Single Trade Code create a legal relationship called “preservation” and different from the traditional notion of trust.