Basics of Banking Laws and Security - Banking Law and Security - Lecture Slides, Slides of Banking Law and Practice

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Promissory Notes
Banker’s Draft
Treasury Bills
Share warrants
Dividend Warrants
Traveller’s Cheque Docsity.com Bank Notes and Banker’s Draft
Bank’s Note: Promissory note made by a banker, payable to bearer on demand.
Bankers’ Draft: Order to pay a specified sum of money addressed by a banker to himself.
May be drawn by one bank upon another.
May be drawn by a branch addressed to its head office: Drawer and drawee are the same bank
Usually made by a customer who has to pay to someone who is not prepared to accept his cheques.
Usually crossed ‘not negotiable, account payee only” Docsity.com Banker’s Draft Correspondant PO Box 834 St. Swithin: St. Swithins memumanll Us 1 1890 South Lindbergh Bid, St. Louis, Missouri 63131 ACCT#80822574 eaten ae NA THIS DRAFT WILL BE NULL ANO VOID ONE YEAR AFTER DATE OF ISSUANCE DATE AMOUNT orartno.D 1157 Jan. 1], 1996 AGBP. 1500.00* PAYABLE AT ORAWEE'S BUYING ATE FOR EXCHANGE F DRAWN, LACUARENCY OTHER THAN Thal OFACIN, PLACE OF barMeNT ing? ; ROMITTER' 4B, K, Werner* DOLLAR EQUIVALENT TELEX F COMMISSIONS TOTAL AUTHORIZED SIGNATUAS Dest our O account ORIGINAL Treasury Bills
Promissory Notes or bills which are issued by the government under discount and fall due at certain intervals.
Short-term loans- Normally 92 days
Means for short-term lending.
To control the money supply Docsity.com Share Warrants P00 Sle Oe AT TAD ESO TEs PROPERTIES Livre ch I rami SLR Ee of Da tJ (: Docsity.com Dividend Warrants
Documents issued by a company directing its banker to pay to a named shareholder a specified sum of money which represents the shareholder’s entitlement to the declared dividend of the company.
Normally drawn in the form of a cheques or banker’s draft. A cheque sent by a company to a shareholder in payment of dividends Docsity.com Dividend Warrants Docsity.com Traveller’s Cheques
Special form of negotiable instruments which enable the holder to draw cash on t.
An order made by the customer, addressed to the bank and requiring it to pay to himself, or his order, the sum specified.
Traveller’s Cheques are conditional. Payment is on condition that the customer signs the traveller’s cheques at the point of issue and countersigns it at the point of negotiation.
Therefore, neither bills of exchange, promissory notes nor cheques. Docsity.com Traveller’s Cheque eee, FROGG 608.095 = 100 Sieve Pike if3/94 Amorican Express Travelers Cheque ar 02 Company & SGhISG98 POshouht5ssseeeshqnIeqg2noe tJ (: Docsity.com Traveller’s Cheque is not a BOE, PN or a cheque
Oversea Chinese Banking Corp Ltd v Woo Hing Brothers M Sdn Bhd [1992] 2 MLJ 86
In 1982, chaiyos purchased TC worth S$32K from the B.-He had used 5 TC amounting to S$6K, the remaining TC were stolen from him in Jakarta. He reported the loss to the B and lodged police report. The B refunded the full amount of the TC which he lost.
In 1983, Frankie had used 21 stolen TC ($20.5K) to pay for the watches from Woo Hing Brothers. When Woo Hing presented the TC to the B, the B refused payment.
Held : The TC is an order to pay subject to the condition that it must be countersigned by the person whose signature appears at the top of the cheque. Since this is conditional order, TC is not a BOE, PN or a cheque.
The B was under legal obligation to honour all TC when it was presented for payment by a bona fide holder in due course. Docsity.com