BUSI 2601 Lecture Notes - Lecture 11: Computer Security, Dogecoin, Liability Insurance
11 Dec 2016
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B usi n ess a n d b a n ki ng. When you open a bank account and deposit $ in it, you are a creditor and the bank is a debtor. Its not the normal creditor/debtor relationship there are superadded duties. The bank must; honor payment instructions and repay deposits, collect payments for the customer, provide account information to the customer on a regular basis, maintain secrecy of the (cid:272)usto(cid:373)er"s affairs. If the account goes into overdraft, and you use a line of credit, the relationship reverses. The bank owes the customer no special duties in this relationship and is free to pursue its own interests. The bank customer agreement for operating a bank account. It is important for a small business to realize that these agreements tend to favor the bank and allocate more risk to the customer than does the common law.
