BUSI 2601 Chapter Notes - Chapter 27: Negotiable Instrument, Promissory Note, Disclose
3 Apr 2018
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See pages 625-626 in 5th or 638-639 in 6th. The relationship between a business and its bank consists of one bank account into which the business deposits its cash receipts from customers and from which it makes payments to suppliers, employees, government, and owners. As a result of regulatory changes and decisions by banks to broaden their range of services, the relationship is now more comprehensive. The legal (cid:374)atu(cid:396)e of the (cid:396)elatio(cid:374)ship is (cid:272)lea(cid:396). I(cid:374) te(cid:396)(cid:373)s of the (cid:272)usto(cid:373)e(cid:396)"s (cid:373)o(cid:374)ey o(cid:374) deposit (cid:449)ith the (cid:271)a(cid:374)k, the relationship is that of the bank as debtor and the customer as creditor. Disclose any actual or potential conflicts of interest. Consider the interests of the customer ahead od those of the bank. The practical advice for customers is to appreciate the basic nature of the relationship and to understand that banks generally have no obligation to look beyond their self interest. However, banks are beginning to broaden their scope to become more competitive.
