Banking law and lending practice
Mr Frank Horgan and Mr Phillip Moore
6 points * One 2-hour lecture and one 1-hour tutorial per week * Distance: one 4-hour lecture at each weekend school (total 16 hours) * Second semester * Gippsland * Prerequisite: GBU1201
Objectives Drawing upon earlier studies of contract law and precedent, the subject aims to develop in students understanding of the evolution of common law, and the relevance of banking law to contemporary banking problems. Students will acquire skills which may be used to resolve legal problems within the changing environment in which banks and other financial institutions operate. Students will attain an awareness of the weaknesses of past management in asset creation, and of the need for objective analysis in making lending decisions
Synopsis Legal framework of the Australian banking and finance industry, including establishment legislation, the Privacy Act, Financial Transactions Reports Act, Trade Practices Act, and other legislation where relevant. Risk and effect on policy and lending decisions, Reserve Bank effectiveness, banker and customer relationship - contractual relationship, duty of care and evolution of precedent, bailment, conversion, types of customer, duties between bank and customer, new account procedures, disclaimers, bank opinions, role of the Banking Ombudsman, negotiability and transferability of instruments, cheques and payment orders, bills of exchange and promissory notes, instruments used in international trade and applications, types of property and securities, priorities, guarantees, lending principles and practice, electronic banking.
Assessment Assignments (2500 words and 3500 words): 40% * Examination (3 hours): 60%
Prescribed texts
Burton G Australian financial transactions law Butterworths, 1991
Edwards R and Tucker G Understanding cheques and payment orders Law Book, 1988
Weerasooria W S Banking law and the financial system Butterworths, 1993