Please enable JavaScript.
Coggle requires JavaScript to display documents.
Banker - Customer Relationship
(cheque, deposit, payment) (Judicial…
Banker - Customer Relationship
(cheque, deposit, payment)
Banker
Now
Issue credit cards, FOREX, MM, Electronic transfers, trade finance facilities, insurance, UT and investments
Traditionally
Receive deposits, Honouring cheques. Giving loans
-
Judicial Interpretations
-
-
-
Cases
Sabah Development Bank v. SKBS (Sabah) S/B & Ors.
Development Financial Institutions are not bank.
x banker if x CA, pay cheques drawn in or collect cheques for customers
Customer
Depositor: person entitles to repayment fo deposit, whether deposit made by him or other person
-
-
Nature and Types of R/S
Ordinary
contractual r/s
-
Terms of contract - expressed,
implied, imposed by statute
Joachimson v Swiss Bank Corporation
- B no obligation to repay customer money unless demanded
- B obligation to pay cheque is conditional upon cheque in proper form
- customer must have sufficient fund in account for bank to make pmt
Two types:
- Debtor - Creditor R/S
- Agent & Prinncipal R/S
Agent-Principal
-
B - agent authority - perform with skill
- paying right person with right amount, in a timely fashion observe any other special instruction
E.g.
- Standing order, remittances
- Bills collectiosn or trade transactions
- Proceeds of cheques
- Drawing & pmt of cheques
Special
relationship
Fiduciary r/s
Fiduciary - person who propert or power is entrusted for the benefit of anoher based on trust and confidence
Bank has fiduciary duties...:
- as trustee - trust fund
- not take undue advantage
- advice to invest in company Bank loaned money
-
with agency r/s, duty to avoid making secret profit
-