- Banker as an agent
- Banker as a trustee
- Banker as an executor
- Banker as an administrator
- Four types of Banker rights
Modern full service bank besides playing the most functions that are acceptive deposit and loaning cash covers a wild vary of economic and non-financial services to the purchasers and also the general public. The services are as follows:
Banker as an Agent
The banker act because the agent of his client in playing the subsequent functions:
1. Payment and assortment of subscription, dividends, salaries, pensions etc. Bankers create payments and receive cash on behalf of their client within the following ways:
- Payment of premium.
- Payment of membership subscription to club, library, and association
- Payment of rents and salaries.
- Collections of dividends on behalf of shoppers.
- A group of pension, rents etc.
- Transfers of tunas from one account to a different.
The banker charges a nominal quantity for this service. For doing this service the banker ought to get clear directions in writing from customers. The directions of the client ought to be clear and not be finish unsure loans that make to arguable that means. The banker might not settle for the directions that are tough to go with however once accepted it’s the duty of the banker to hold out the directions.
2. Purchases and sales of securities: Banker undertakes to buy and sell shares and debentures of joint stock Company on behalf of his client solely. Whenever the client delegates the work to the bank the banker ought to get clear and precise directions in special forms used for this purpose. The shape ought to contain the subsequent things:
- The particulars of securities to be oversubscribed or purchased.
- The minimum and most value at that the securities are to be oversubscribed or purchased.
- The amount inside that they’re to be oversubscribed or purchased.
- The names, addresses of the persons in whose name they’re to be registered.
- In corporal punishment this services the banker act as Associate in nursing agent of his client. Solely members of the securities market will sell or purchase of securities. Because the bank isn’t the members of the securities market they appoint brokers United Nations agency act as sub-agents of the bank to hold out the directions.
3. Acting as Associate in nursing lawyer: Power of attorney could also be given by a client to the Tanker. By granting power of lawyer, the client licensed the banker to receive dividends and interest on securities happiness to him and provides a legitimate discharge, therefore.
Banker as a Trustee
A person might want that once his death, a region or whole of his property be control during a trust for the advantage of numerous beneficiaries named within the can.
In such a case he might produce a trust underneath his can directive an explicit person to carry the property to such persons once a time. Once the bankers take the liability to care of this sort of property he are going to be referred to as trustee.
Banker as an Executor
A person might create can expressing his intention relating to the disposal of his property once his death. A can should be in writing, signed by the person creating the desire that referred to as trustworthy and etch by 2 witnesses.
A can becomes effective solely once it’s approved by the court as a personal. a personal could be a copy of the desire punctually certify underneath the seal of the court in conjunction with a grant administrator.
The person appointed as Associate in nursing administrator of the deceased is understood as fiduciary. The bank might appoint as Associate in nursing fiduciary for such service.
Banker as Administrator
In case an individual dies while not creating a legitimate can, the property of the deceased could also be administered in keeping with law.
The bank could also be appointed for the administration of this property then the banker are going to be referred to as the administrator.
Four Types of Banker rights
Rights of lien: One of the necessary rights of the banker is that the right of lien. Lien means that the proper of the person to retain the products or securities closely-held by the someone till the debt due from him is repaid. These are:
- Safe custody deposit.
- Documents deposited for a special purpose.
- Security control in trust.
The proper of the set-off: A banker possesses the proper of set-off that permits him to mix 2 accounts within the name of an equivalent client and to regulate the debit balance in one account with the credit balance within the different. The proper of set-off may be exercised subject to the fulfillment of the subsequent conditions:
- The accounts should be within the same name within the same right.
- The right may be exercised in respects of debts due solely not in respects of future debts or contingent debts.
- The variety of debts should make certain.
- The banker might exercise that right at his discretion.
Banker’s right of appropriation: If the client has over one account or he has taken over one loan from the banker, the banker has the proper to appropriation these loans by the accounts.
Right to charge interest, incidental charges: As a person, a banker has the inexplicit right to charge interest on the loans granted to the client. Within the same approach, incidental charges like service charges, process fees, appraisal charges, panel charges could also be obligatory by the banker to the client.