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Bcom 334: Banking Law Practice Question Paper

Bcom 334: Banking Law Practice

Course:Bachelor Of Commerce

Institution: Chuka University question papers

Exam Year:2013

CHUKA

UNIVERSITY

UNIVERSITY EXAMINATIONS
THIRD YEAR EXAMINATION FOR THE AWARD OF
DEGREE OF BACHELOR OF COMMERCE

BCOM 334: BANKING LAW PRACTICE

STREAMS: BCOM Y3S2 TIME: 2 HOURS

DAY/DATE: FRIDAY 9/8/2013 11.30 AM – 1.30 PM

INSTRUCTIONS:

Answer Question ONE and any other TWO Questions

QUESTION ONE

(a) Outline and discuss the different types of banking systems. [9 Marks]

(b) Ben and Grace are students in Chuka University; Ben says that a banker can not be sued for a tort, while Grace says he can be sued, who is right and why? [9 Marks]

(c) Discuss the sources of banking law [8 Marks]

(d) Explain the protection given under sec 60 of the bills of exchange Act Cap 27 to the bank which makes payment on a forged cheque. [4 Marks]

QUESTION TWO

(a) “The banker’s lien entitles the banker to retain in his possession securities etc, in respect of the general balance due by the owner to the banker. The right extends to all securities placed in his hands as a banker by his customer which are not specifically appropriated.” Discuss the legal limitations to the right. [10 Marks]

(b) “A bank has an obligation to honor customers ‘cheques’. What are the conditions that must be met for a commercial bank to honor customers’ cheques? [10 Marks]

QUESTION THREE

(a) “It is obligatory for the bankers not to disclose the state of customer’s account. The confidential relationship between him and his customer enjoins him to keep secret all matters relating to his customer, discovered in the course of their relationship”. Discuss the relevant case law and its exceptions. [12 Marks]

(b) Explain the following as used in banking [8 Marks]

(i) Hypothecation
(ii) Consortium Advances
(iii) Joint Accounts
(iv) Minors Accounts

QUESTION FOUR

(a) Discuss how the adoption of cheque truncation will improve the whole cheque clearing system. [9 Marks]

(b) Explain the functions of monetary policy committee. [5 Marks]

(c) Section 11 of the Banking Act specifies the restrictions on the manner in which banks make advances and credits. Discuss the restrictions contained in the Banking Act.
[6 Marks]

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Bcom 334: Banking Law Practice Question Paper

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