Also known as: wadias · wadi'a · deposit · bailment
Written by attorneys · grounded in primary & secondary sources — see below
A historical pledge or security given to guarantee performance or payment.
Warren Woods deposited a small sum of his own money into the client trust account solely to cover monthly bank service charges. The deposit functioned as a wadia ensuring the account remained active without invading client funds. The arrangement satisfied the rule limiting such deposits to the precise amount needed for charges.
Whitney White granted a security interest in her deposit account to secure a loan from Walker Valley Produce. The lender obtained control of the account under the statute, perfecting its interest through that mechanism alone. No filing was required because the wadia was perfected solely by control.
Select any source to read its text and confirm it supports the definition.
Wyatt Wilson opened an account payable on his death to his niece under a POD designation. The arrangement served as a wadia passing the remaining balance directly to the beneficiary without probate. The designation complied with the statutory definition of such an account.
Willa Whitman removed stolen cash and a weapon from her client's premises and placed them in a new safe deposit box. The action constituted an improper wadia shielding physical evidence rather than a protected communication. The court held the privilege did not extend to the concealed items.
Winston Ward received advance legal fees from a client and deposited them into the trust account. The funds remained a wadia to be withdrawn only as fees were earned. The rule required the deposit to stay intact until the lawyer performed the corresponding work.
Wanda Weaver made a political contribution to a judicial candidate hoping to obtain a court appointment for her firm. The payment operated as a wadia intended to influence the selection process. The rule prohibited such contributions when made for that specific purpose.
It refers to a pledge or security given to guarantee an obligation, drawn directly from the historical definition in legal dictionaries.
A lawyer may use a limited personal deposit as a wadia solely to cover bank charges, provided the amount is no more than necessary for that purpose.
Yes, a security interest in a deposit account is perfected only by control, which functions as the required wadia under the UCC.
A POD designation establishes a wadia that transfers the account balance to the named beneficiary on the owner's death without probate.
No, an attorney who removes and conceals physical evidence creates an improper wadia that receives no privilege protection.
Advance fees must be deposited into a trust account as a wadia and may be withdrawn only as the lawyer earns them.
…cognizance. The Bank of the United States has constitutionally a right to establish branches or offices of discount and deposit within any State, and the State within which such branch is established cannot, without violating the Constitution, tax that branch. The State governments have no right to tax any of the…