Banking · Safe Custody and Lien
Intellectual Property documents were deposited under a safe custody agreement. What is the bank's position regarding these documents upon receiving a Garnishee Order (GO)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank is compelled to hand over the documents to the Court because the GO attaches all assets of the Judgment Debtor.
- 2The bank has no Lien (General or Particular) on the documents because they were deposited under a Safe Custody Agreement, and the GO is ineffective as the bank acts as a Bailee/Trustee.✓
- 3The bank has a General Lien on these documents and must hold them until the GO is satisfied.
- 4The bank has a Particular Lien on these documents and can sell them to recover the OD debt.
Correct answer
The bank has no Lien (General or Particular) on the documents because they were deposited under a Safe Custody Agreement, and the GO is ineffective as the bank acts as a Bailee/Trustee.
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