Authorised by Academic Registrar, April 1996
Objectives Students will develop an understanding of the evolution of common law, and the relevance of banking law to contemporary banking problems. They will develop skills which enable them to resolve legal problems within the changing environment in which banks and other financial institutions operate, together with an awareness of those factors leading to the weakness of past management in asset creation, and of the need for significantly more objective analysis in making lending decisions.
Synopsis Topics include 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 Assignment one (3500 words); assignment two (2500 words): total 40% + Examination (3 hours): 60%