BTG3243

Banking law and lending practice

Mr Andrew Coleman

6 points · One 2-hour lecture and one 1-hour tutorial per week · Distance · Second semester · Gippsland · Prerequisite: BTG1201

Objectives Drawing upon earlier studies of business law, the subject aims to develop in students understanding of 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 develop a legal perspective to assist in financial decision making and will be able to define the legal background for the resolution of business and problems involving financial relationships.

Synopsis Legal framework of the Australian banking and finance industry, including establishment legislation, the Privacy Act, Financial Transaction Reports Act, Trade Practices Act, and other legislation where relevant. Banker and customer relationship - contractual relationship, duty of care, 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, bills of exchange and promissory notes. The law regulating business finance and security, hire-purchase and consumer credit, types of property and securities, priorities, guarantees, lending principles and practice, electronic banking, bankruptcy and insolvency law, and debt recovery.

Assessment Two assignments (2000 words each): 40% · Examination (3 hours): 60%

Prescribed texts

Blay S and Clark E Australian law of financial institutions Harcourt Brace, latest edn
Tyree A Banking law in Australia Butterworths, latest edn

Back to the 1999 Business and Economics Handbook