Banking Law and Practice

<p>Preface ix</p>
<p>PART 1 BANK–CUSTOMER RELATIONSHIP AND ACCOUNT OPENING 1</p>
<p>1 Contractual Relationships in Law and Practice 3</p>
<p>Learning Objectives 3</p>
<p>Introduction 4</p>
<p>Definition of Customer 4</p>
<p>Nature of the Banker–Customer Relationship 5</p>
<p>Laws and Practice 7</p>
<p>Mandates 9</p>
<p>Power of Attorney 11</p>
<p>Limitation of Actions 14</p>
<p>Appropriation of Payments 15</p>
<p>Set–off 17</p>
<p>Banker s Lien 20</p>
<p>Banker s Duty of Secrecy 21</p>
<p>Personal Data and Consumer Credit Data 28</p>
<p>Statement of Account or Passbook 33</p>
<p>Wrongful Dishonour of Cheques 34</p>
<p>Exemption Clauses 36</p>
<p>Summary 37</p>
<p>Key Terms 38</p>
<p>Study Guide 39</p>
<p>Further Reading 39</p>
<p>2 Opening and Conduct of Accounts 41</p>
<p>Learning Objectives 41</p>
<p>Introduction 42</p>
<p>Opening of an Account 42</p>
<p>Conduct of Account 44</p>
<p>Closing of Account 51</p>
<p>Opening and Conduct of Accounts for Various Customers 52</p>
<p>Defi nition of Different Types of Authorities 82</p>
<p>Anti–Money Laundering and Counter–Terrorist Financing 85</p>
<p>Summary 98</p>
<p>Key Terms 99</p>
<p>Study Guide 100</p>
<p>Further Reading 100</p>
<p>PART 2 BANKING OPERATIONS 101</p>
<p>3 Bills of Exchange and Promissory Notes 103</p>
<p>Learning Objectives 103</p>
<p>Introduction 104</p>
<p>Negotiable Instruments 104</p>
<p>Bills of Exchange 107</p>
<p>Promissory Notes 124</p>
<p>Summary 127</p>
<p>Key Terms 128</p>
<p>Study Guide 128</p>
<p>Further Reading 129</p>
<p>4 Other Banking Operations 131</p>
<p>Learning Objectives 131</p>
<p>Introduction 132</p>
<p>Credit Cards 132</p>
<p>Direct Debiting 138</p>
<p>Automated Teller Machines 141</p>
<p>Electronic Funds Transfer at the Point of Sale 143</p>
<p>Investment Advice 144</p>
<p>Safe Custody 146</p>
<p>Other Banking Services 150</p>
<p>Internet and Phone Banking 152</p>
<p>Summary 154</p>
<p>Key Terms 156</p>
<p>Study Guide 156</p>
<p>Further Reading 157</p>
<p>PART 3 LAW RELATING TO SECURITY 159</p>
<p>5 Guarantee 161</p>
<p>Learning Objectives 161</p>
<p>Introduction 162</p>
<p>What is a Guarantee? 162</p>
<p>Undue Infl uence 165</p>
<p>Guarantees by Minors 166</p>
<p>Guarantees by Partnerships 167</p>
<p>Corporate Guarantees 168</p>
<p>Joint and Several Guarantees 168</p>
<p>Liability of Guarantors 170</p>
<p>Guarantor s Rights as Against the Creditor 172</p>
<p>Guarantor s Rights as Against the Debtor 173</p>
<p>Rights of Co–Guarantors 174</p>
<p>Duties of the Creditor Bank 175</p>
<p>Discharge of the Guarantor 176</p>
<p>Summary 180</p>
<p>Key Terms 181</p>
<p>Study Guide 182</p>
<p>Further Reading 182</p>
<p>6 Mortgage of Land 183</p>
<p>Learning Objectives 183</p>
<p>Introduction 184</p>
<p>Land in Hong Kong 184</p>
<p>Mortgages 187</p>
<p>Priorities 192</p>
<p>Rights of Mortgagee/Chargee 195</p>
<p>Rights of Mortgagors/Chargors 201</p>
<p>Discharge 205</p>
<p>Summary 205</p>
<p>Key Terms 206</p>
<p>Study Guide 207</p>
<p>Further Reading 207</p>
<p>7 Other Security Interests 209</p>
<p>Learning Objectives 209</p>
<p>Introduction 210</p>
<p>Company Charge 210</p>
<p>Pledge 218</p>
<p>Hypothecation 222</p>
<p>Company Shares 224</p>
<p>Insurance Policies 229</p>
<p>Bankers Lien 235</p>
<p>Summary 236</p>
<p>Key Terms 237</p>
<p>Study Guide 237</p>
<p>Further Reading 238</p>
<p>PART 4 INSOLVENCY 239</p>
<p>8 Bankruptcy 241</p>
<p>Learning Objectives 241</p>
<p>Introduction 242</p>
<p>Bankruptcy 242</p>
<p>Bankruptcy Order 244</p>
<p>Discharge From Bankruptcy 248</p>
<p>Voluntary Arrangements 248</p>
<p>Legal Issues for the Banker 250</p>
<p>Summary 254</p>
<p>Key Terms 256</p>
<p>Study Guide 256</p>
<p>Further Reading 256</p>
<p>9 Winding Up 257</p>
<p>Learning Objectives 257</p>
<p>Introduction 258</p>
<p>Winding Up 258</p>
<p>Compulsory Winding Up 259</p>
<p>Voluntary Winding Up 262</p>
<p>Petition for Winding Up 265</p>
<p>The Liquidator 265</p>
<p>Unregistered Companies 271</p>
<p>Assets Available for Distribution 271</p>
<p>Ranking of Claims 274</p>
<p>Antecedent Transactions 276</p>
<p>Legal Issues for the Banker 278</p>
<p>Summary 282</p>
<p>Key Terms 283</p>
<p>Study Guide 283</p>
<p>Further Reading 284</p>
<p>Index 285</p>