Académique Documents
Professionnel Documents
Culture Documents
a)
Who is a customer?
To constitute a customer there must be some recognizable or habit of
dealing in the nature of regular banking business _ Sir John Paget.
Any person can become a customer provided;
If he opens any type of account with the bank
Frequency of transaction is anticipated but not insisted upon
The dealings must be in banking in nature
Person who avails the services provided by the banker
b) Define conversion?
Conversion refers to unlawful taking, using, disposing or destroying
of goods or property which is in consistent with the owners right of
possession and ownership of the goods or property to which he is
entitled.
a) Expand FDR.
Fixed Depository Receipt
b) What is blank endorsement?
An endorsement is said to be in blank if the endorser puts his
signature only on the instrument and does not write the name of any
person to whom the payment should be made is called as blank or general
endorsement.
c) What do you mean by material alteration?
Material alteration is an alteration by which alters materially the
operation of a cheque and there by the rights and liabilities of the parties
there too.
d) What is Hypothecation?
It is a contract where by a movable property is made available by
the borrower to the lender as security without transferring the ownership
and possession of the property.
e) Define
the
term
executor?
An executor is a person appointed by the testator for the purpose of
executing his will after his death. That is winding up his estate and other
responsibilities. He gets the authority to act from the official probate
and he is required to act in accordance with the terms and conditions of
the will.
SECTION-B (8marks)
(2.) State the circumstances to refuse the payment of a cheque?
Cheque is an instrument in writing containing an unconditional order
drawn on a specified banker signed by the drawer directing the banker to
pay on demand a certain sum of money only to a certain person or to his
drawer or to the bearer of the instrument.
Circumstances to refuse the payment of a cheque
When a banker receives a notice of the drawers death, insolvency,
insanity etc.
negotiable
instruments?
What
are
their
Crossing takes place by drawing two parallel transverse lines across the face
of cheque with or without the words and company or not negotiable
between the parallel transverse lines.
Objectives:
It makes it difficult for a wrong person to get the payment
It facilitates the tracing of the person who has received the
payment.
Types of crossing:
1. General Crossing
2. Special Crossing
General Crossing
General crossing means the act of drawing two parallel transverse lines
across the face of the face of the cheque with or without words and
company, or not negotiable or account payee or any abbreviation thereof
between the parallel lines
Special Crossing
Special crossing means writing the name of the collecting banker in between
the transverse lines.
Special Crossing means writing across the face of the cheque name of some
banker with or without lines. That is it requires name of the collecting
banker between the transverse lines.
(5.) State the innovative services of modern banker.
Agency services
Payment and collection of subscriptions, dividends, salary
etc.
Purchase and sale of securities
Acting as executor
Acting as attorney
By granting power of attorney, the customer authorises the banker to
receive dividend and interest on securities belonging to him and give
valid discharge thereof.
General utility services
Safe custody of valuables
Letters of credit
Travellers cheque
Remittance of funds
Merchant banking
Dealing in foreign exchange business
Lease financing
Factoring
Housing financing
Factoring
Housing finance
Underwriting of securities
Tax consultancy
Credit cards
Gift cheques
Consultancy services
Teller system
(a) Executor:
An executor is a person appointed by the testator for the purpose of
executing his will after his death. That is winding up of his estate and
other responsibilities. He gets the authority to act from the official
probate and he is required to act in accordance with the terms and
conditions of the will.
Precautions to be taken while opening the account;
On receipt of notice of the death of the testator banker has to stop
the operations of the account.
Banker should ask the executor to produce the official probate to
allow them to open the account.
After the receipt of the probate banker should allow them to open
the account in the name of Executor for the estate of Mr. X..
Banker is required to ensure that the credit balances will be
transferred to the new account which is opened in the name of
executor.
Banker has to make sure that executor is not misappropriating/
misusing the funds which are available.
Banker can extent the services of loans and advances but before
that he has to make sure the money will be used properly and he
has to make sure the money will be used properly and he has to
keep sufficient security for the loans and advances.
In case of insolvency of an executor that will not stop him to
continue to act as executor, but in case of death or lunatic
conditions court has to appoint a new executor by releasing a new
a probate.
(c)Trustee:
Trustee is a person with whom the confidence is reposed; the person
for whose benefit the trust is found is called as beneficiary.
Precautions to be taken while opening the account;
Banker must examine the original trust deed and ascertain the
nature of the trust, names of trustees and power vested in them.
Banker has to keep a certified copy of the trust deed for his future
reference
Banker should get the account opening form signed by all the
trustees.
He should get the declaration from all trustees that they are entitled
to act as trustees and work for the beneficiary.
He should obtain the specimen signature of the trustee who will be
operating the account. but in case of any financial advances or