Ebook: The Practice of Banking , Part 1

1 Banker and Customer Relationship.- The Banking Act 1979.- The nature of the banking contract.- The contractual relationship.- Banker’s Duty of Secrecy.- Justice and confidentiality.- Status enquiries and banker’s confidential reports.- Some practical considerations when making or responding to enquiries.- The Debtor/Creditor Relationship.- Appropriation of payments.- Set off.- Joint and several liability.- Passbooks and statements.- Lien.- Injunctions and garnishee orders.- The bank giro, standing orders and direct debits.- Limitation of actions.- Principal and agent.- Mandates and powers of attorney.- Bailment.- 2 Bankruptcy.- Stages of Bankruptcy.- Acts of bankruptcy.- The petition.- Receiving order.- Creditors’ meeting.- Public examination.- Adjudication order.- Discharge in bankruptcy.- Property Divisible Amongst Creditors.- Goods in bankrupt’s reputed ownership.- Recoverable property.- Relation back.- Protected transactions.- Summary of Conduct of Accounts in the Light of Section 46 Bankruptcy Act 1914.- Credit accounts.- Overdrawn accounts.- Delivery of securities.- After notice of presentation of petition.- After the making of a receiving order.- Proof in bankruptcy.- Rights of Creditors.- Secured creditor.- Preferential creditors.- Deferred creditors.- Ordinary debts.- Discharge in Bankruptcy.- Accounts with undischarged bankrupts.- Bankrupt payee of cheque.- Proof by holder of a bill.- Bills of Exchange and receiving order.- Rights of drawer.- Rights of drawee or acceptor.- Rights of holder.- Discounted bills.- Bankrupt firm.- Administration in Bankruptcy of the Estate of a Person Dying Insolvent.- Deeds of Arrangement.- Insolvency Law Reform: The Cork Report.- 3 Types of Accounts.- The Accounts of Private Individuals.- Death of customer.- Mental disorder of customers.- The Accounts of Limited Company Customers.- Private and public companies — classification and registration.- Summary of classification of public and private companies.- The prospectus.- Companies’ banking accounts.- Company names and business names.- Loans to a company.- Table A Clause 69 1929 Act.- Table A Clause 79 1948 Act.- Ultra vires borrowing.- Rule in Turquand’s Case.- Loans to directors.- Financial assistance for the acquisition of shares.- Conditions necessary for private companies to give financial assistance.- The practical effect of the changes on lending bankers.- Winding up of companies.- Partnership Accounts.- Formation of partnership.- Classes of partners.- Disclosure of business ownership.- Relation of partners to one another.- Extent of partner’s authority.- Liability of partner for debts of the firm.- Limited partnership.- Dissolution.- Guarantees covering partnership account.- Opening a partnership account.- Revocation of mandates.- Loans to partnerships.- Death of a partner.- Bankruptcy of a partner.- Mental disorder of a partner.- Retirement of a partner.- Bankruptcy of a partnership.- Joint Account Customers.- Opening the account.- Death of one party.- Deposit of joint account security.- Securities held in joint names.- Bankruptcy of one party.- Mental disorder of one party.- Notice of dispute between parties.- Accounts for Minors.- The Consumer Credit Act 1974.- The licensing system.- Canvassing.- Debtor-creditor-supplier.- Charge for credit.- Extortionate credit bargins.- Regulations relating to documentation.- Enforcement of the Act.- 4 Types of Accounts (Cont.).- Executors and Administrators.- Trustees.- Unincorporated Bodies.- Industrial and Provident Societies.- Parochial Church Councils.- Building Societies.- Local Authorities.- Solicitors’ Accounts.- Liquidators and Receivers.- 5 Cheques and Bills of Exchange: The Paying and Collecting Banker.- The Paying Banker.- Countermand of payment.- Post-dated cheques.- Forgery of drawer’s signature.- Facsimile signatures.- Fraudulent alterations.- Payment to the wrong person.- Unauthorised and forged endorsements.- The Collecting Banker.- Crossed cheques.- Bill discounting.- 6 Securities for Advances.- Lien, Mortgage and Pledge.- Types of Securities that the Banker may be Offered.- Stock Exchange Securities.- Registered Stocks and Shares.- An Equitable Title.- A Legal Title.- Equitable Titles v. Legal Titles.- Inscribed Stocks.- Bearer Securities.- National Savings Securities.- Partly Paid Shares.- Unit Trust Securities.- Unlisted Shares.- Debentures.- Debentures as Security for a Bank Overdraft.- Fixed Charge on Book Debts.- Reservation of Title.- Section 95 Companies Act 1948 — Registration of Charges.- The Remedies Open to a Debenture Holder.- Receivers.- Interested Directors.- Assignment of Book Debts.- Practical procedure.- 7 Securities for Advances (Cont.).- Land and Buildings: Title Deeds and Land Certificates.- Unregistered land.- Registed land.- Leasehold property as security.- Mortgages of land: Legal or equitable.- Forms of charge used by banks.- Priorities of mortgages and land charges.- Procedure for taking unregistered land as security.- Taking registered land as security.- Second mortgages (and their defects).- Sub-mortgages.- Rights of mortgages.- Matrimonial homes and residential properties.- Independent legal advice.- Discharge of mortgage.- Conclusion.- 8 Securities for Advances (Cont.).- Guarantees.- Consideration.- Some practical points on guarantees as security.- Disclosure.- The guarantor.- Independent legal advice.- Undue influence.- Bank forms of guarantee.- Guarantee for the account of a partnership.- Guarantees to secure ultra vires borrowings.- Determination of guarantee.- Determination by guarantor.- Payments made by a guarantor.- Demand by the bank.- Change of parties.- Death, mental disorder or bankruptcy.- Lapsed guarantees.- Cash held in support of guarantee.- Letters of comfort.- Performance bonds and other guarantees/bonds/indemmities given by banks.- 9 Securities for Advances (Cont.).- Life policies.- Charging life policies as security.- Lending Against Produce: Merchandise Advances.- Taking documents of title as security.- Bills of lading.- Documentary bills of exchange.- Dock and warehouse warrants.- A warehouse receipt or certificate.- Release of goods.- Agricultural Charges and Farming Advances.- Hire Purchase Agreements as Security.- 10 Securities for Advances (Cont.).- Method of Charging Security to Ensure that the Intended Liabilities are Effectively Secured.- Various Securities Checklists.- First legal charge over registered land.- First legal charge over unregistered land.- Second legal charge over registered land.- Second legal charge over unregistered land.- Debenture.- Company guarantee.