SPECIAL TYPES OF BANKERS CUSTOMERS OR TYPES OF ACCOUNT HOLDERS

MINOR OR INFANT LUNATIC DRUNKARDS PARTNERSHIP FIRM A JOINT STOCK COMPANY PRIVATE COMPANIES CLUBS,SOCIETIES AND NON TRADING ASSOCIATIONS EXECUTORS, ADMINISTRATORS AND TRUSTEES JOINT ACCOUNT

LUNATIC
A

lunatic is a person of unsound mind. (Irresponsible person)

The Position of Lunatic Under Law.

Bankers Duty.

DRUNKARD
The Position of Drunkard Under Law. Bankers Duty.

PARTNERSHIP FIRM

A Partnership firm is an association of two or more persons called partners who undertake a venture for a mutual benefit.

OPENING OF AN ACCOUNT

CASE LAW Alliance Bank vs. Kearly

 Consent

of All Partners Partnership Deed Mandate

The Name of the person who is authorized to operate the account. The extent of authority given to such persons. Personal account and firms account The retirement of a partner The death of a partner The insolvency/insanity of a partner.

JOINT STOCK COMPANIES

A

joint stock company is an artificial person created by law. It has a separate existence different from that of the members who constitute it. It has a common seal. It can sue others and can be sued.

Opening of an account
Preliminary steps The banker should find out whether the company has a legal existence or not. Memorandum of Association and Article of Association. Prospects of company. In case of new company, In case of Existing one,

The Board of Resolution Mandate 1. The names of persons who are authorised to operate the account and their specimen signatures. 2. The nature and extent of powers delegated to the authorized person. 3. For any change 4. Change in the post. Borrowing powers Purpose of loan

PRIVATE COMPANIES
Private

limited companies are those companies wherein the number of shareholders is limited to 50 and transferability of the share is restricted.

CLUBS, SOCIETIES AND NONTRADING ASSOCIATION

OPENING OF AN ACCOUNT MANDATE AND RESOLUTION BORROWINGS

A Club Account and a Personal Account 1. He cannot combine both the account 2. The right of lien and set off will not be available against each other. 3. A cheque payable to the club must not be collected to the private account of the individuals operating that account.

EXECUTORS,ADMINISTRATORS AND TRUSTEES

Bankers

Duty Joint executors and trustees Breach of trust Powers to borrow Trust Account and Personal Account of a trustee

JOINT ACCOUNT
1.

2. 3.

When two or more persons open an account jointly, it is called a joint account. The Banker should take the following Precautions in opening and dealing with a joint account. The application for opening a joint account must be signed by all the persons intending to open a joint account. The banker should obtain clear instruction in writing. Mandate

4. Any joint account-holder can stop payment of a cheque issued on a joint account. 5. Borrowings 6.It is automatically revoked if any of the joint account holders dies. The banker must stop payment in such cases. 7.Alteration of a cheque.

PROBLEMS
A paying cashier observes that the person who is to receive cash as bearer of a cheque for Rs. 2000 passed for cash payment is a minor. The bearer confirms that his age is 14 years. What would be the decision of the Branch Manager in this matter?
1.