Security deposit

A security deposit is a sum of money held in trust.^[1]

The United States Supreme Court ruled in Commissioner v. Indianapolis Power & Light Co. (1990) that a deposit differs from an advance payment because the depositing party has dominion over the funds and retains the right to insist upon repayment in cash. On the other hand, the party making an advance payment retains no right to insist upon the return of the funds as long as the recipient fulfills the contractual agreement.^[2]

^ Helewitz, Jeffery A. (2015). Basic Real Estate and Property Law for Paralegals (5th ed.). Frederick, MD: Wolters Kluwer. pp. 174, 255. ISBN 978-1-4548-5122-6.
^ Commissioner v. Indianapolis Power & Light Co., 493 U.S. 203 (1990)

[Helewitz-1] Helewitz, Jeffery A. (2015). Basic Real Estate and Property Law for Paralegals (5th ed.). Frederick, MD: Wolters Kluwer. pp. 174, 255. ISBN 978-1-4548-5122-6.

[2] Commissioner v. Indianapolis Power & Light Co., 493 U.S. 203 (1990)

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