Depositary Agreement with the Depositor - Individual

This graduate paper is aimed at discussing of the General characteristics of the Depositary agreement from the customer oriented position. The main objectives of the paper are: 1) the comprehensive research of the Institute of the Depositary agreement, the theory and practice of its application based on the current Russian and foreign legislation; 2) the analysis of particular problems of the Depositary agreement and the search for their effective solutions; 3) the study of the position of the Russian courts and the practice of negotiating Depository agreements. The paper consists of an introduction, three chapters, sixteen sections, a conclusion, annexes and a bibliography. Chapter I deals with a General issues of securities, the Depositary agreement: its concept, structure and an essential terms, the order of detention. Chapter II is devoted to the peculiarities of the Depositary agreement with the Depositor – individual; the characteristic of the Depositor as a weak party of the contract and as a consumer. Chapter III focuses on the analysis of certain unfair terms of the Depositary agreement, which violates the balance of interests of the depositor. Based on this research the following conclusions were made: firstly, it is necessary to state that neither the legislator, nor an enforcement authority, do not pay enough attention to regulation of the Depository activities; there is a lack of judicial practice based on the issues of the Depositary agreement; secondly, it is required to recognize as the priority goal a system of protection of interests of investors (primarily – individuals); thirdly, it is needful to form the fair and equitable regulation of the legal status of the Depositary and of the Depositor; fourthly, it is advisable to adopt major amendments and to bring the legislation on securities market into the consistent system; fifthly, it is necessary to develop the practice of depositor protection from unfair contract terms.