BUSI 2601 Chapter Notes - Chapter 25: Cheque, Electronic Funds Transfer, Promissory Note
21 Jun 2016
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Document Summary
Traditionally, the canadian nancial services industry had four distinct sectors: banks, trust companies, stockbrokerage, insurance companies. In canada, banks are under federal jurisdiction and are regulated through the federal bank act. The main purposes of the act are to ensure the stability and liquidity of banks and to identify and regulate the types of business they are permitted to conduct. In terms of the customer"s money on deposit with the bank, the relationship is that of the bank as debtor and the customer as creditor. The common law and banking practice imply legal duties on both parties in the banking relationship. For example, 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 customer"s affairs. Customers also have implied duties to the bank. Standard banking documents are designed primarily to protect the bank, not the customer.
