Description
The Banking and Finance Series has been written for students who are preparing for the Associateship of the Institute of Bankers. The structure of the series follows the syllabus closely. Although the emphasis is on the Institute of Bankers’ examinations the series is also relevant to students for the kinds of other professional examinations such as the different Accountancy Bodies, Chartered Secretaries, Diploma in Public Administration, under graduate business course, B.T.E.C., B.E.C., R.N.D., D.M.S., Stock Exchange courses, Association of Corporate Treasurers, Institute of Freight Forwarders, Institute of Export. Brian Kettell July 1985 Series Editor xi Preface This book covers a broad range of topics relating to banking but aims primarily at the aspects of banking which comprise the syllabus of the Institute of Bankers examination in Practice of Banking – 1 (Banking Diploma – Stage 2). Although the textbook should be of particular interest and assistance to students engaging upon a study of the relative Institute of Bankers subject, the book will, due to the wide range of technical banking information it contains coupled with the practical guidance it affords, provide a useful general reference book for practising branch bankers and for students in educational institutes who are studying financial and business courses. 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.
