An irregular deposit occurs when the depositary can use the money or other items entrusted for safekeeping. Find out what an irregular deposit is, what its features are and how it differs from a loan.
Irregular deposit – what is it?
Pursuant to the Civil Code, if it follows from specific regulations, contracts, or circumstances that the depositary may dispose of the money entrusted for safekeeping or other items identified only as to their type, the provisions on loans (irregular deposit) shall apply accordingly. Return details depend on safekeeping provisions (https://arslege.pl/kodeks-cywilny/k9/s2040/).
An irregular deposit is treated both as a variant of a traditional safekeeping contract and as a separate type of nominate contract. It is recognized as a contract of a special type, which includes elements of storage and loans.
| Characteristics of an irregular deposit | Authorization to manage the items entrusted for safekeeping (usually money) |
| The right of the depositor to demand the return of the item entrusted for safekeeping at any time | |
| The right of the depositary to use the items entrusted for safekeeping |
What does not constitute an irregular deposit?
| An irregular deposit is not: | The contractual entrustment of money to be placed in time-deposit savings accounts |
| Being a co-owner of an account without the option of using the funds accumulated therein | |
| Lending a bank account with the stipulation that the lender will not in any way dispose of the funds deposited in that account | |
| Depositing in a bank account money that constitutes an estate and is to be returned to the heirs | |
| Comprehensive management of financial liquidity such as cash pooling | |
| Acceptance by the law firm of amounts deposited by auction participants in connection with the legal services of the auction organizer, unless the law firm cannot dispose of these funds |
Irregular deposit vs. loan
An irregular deposit is not a loan, even though:
- The depositary has the right to use the deposited item as in a loan agreement,
- The irregular deposit has similar consequences regarding the tax on civil law transactions.
The main difference between an irregular deposit and a loan is:
- The fact that the irregular deposit is concluded in the interest of the depositor,
- Regulation of tax obligations by the depositary.
Even without formal agreement, the depositary must pay civil law transaction tax. The irregular deposit agreement is subject to a 0.5% tax rate. The tax obligation arises at the time of the civil law transaction, i.e., the conclusion of the irregular deposit agreement. Subsequent execution of this agreement up to the indicated amount is not subject to taxation again unless these activities increase the tax base. In the case of several irregular deposit agreements, each of them is subject to taxation. Do you need more information about the taxation of irregular deposits? Read more about this subject here: https://www.pit.pl/podatek-pcc/umowa-depozytu-nieprawidlowego-a-podatek-pcc-1008309.
If you have more questions, our experts will help you with comprehensive legal advice. Feel free to contact our law firm.
FAQ – frequently asked questions about irregular deposit
How does the Civil Code define an irregular deposit?
Pursuant to the Civil Code, if it follows from specific regulations, contracts, or circumstances that the depositary may dispose of the money entrusted for safekeeping or other items identified only as to their type, the provisions on loans (irregular deposit) shall apply accordingly.
Does an irregular deposit only concern money?
No, the concept of an irregular deposit can also apply to other items designated only by type.
What obligations apply to the parties of an irregular deposit?
The depositor is responsible for the physical and legal defects of the item delivered (obligation to compensate for damages). He must also pay the depositary a fee for the irregular deposit. The depositary’s obligation is to return the object of the irregular deposit. Moreover, he must pay the depositor a fee for the irregular deposit.
Can an irregular deposit lead to legal liability?
Yes, the violation of irregular deposit principles may result in civil liability.
Can an irregular deposit agreement be invalidated?
In certain situations, invalidation of an irregular deposit agreement is possible. This depends on the circumstances of the case.
Can an irregular deposit affect property rights?
Yes, depending on the type of deposit item, the violation of irregular deposit rules may affect the property rights.
When is a deposit considered irregular under Polish law?
A deposit becomes irregular when the conditions specified in the Civil Code are met.
Are there differences in treating irregular deposits between financial institutions and private individuals?
Yes. The approach may differ depending on whether the parties are financial institutions or private entities.
Can an irregular deposit be resolved amicably?
In certain situations, parties may attempt to resolve disputes regarding irregular deposits amicably. However, this requires the consent of both parties.
What is the statute of limitations for claims related to irregular deposits?
The law regulates the statute of limitations for claims on irregular deposits. Yet, it may depend on various factors.
