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Cmm 422: Banking Law And Practice Question Paper

Cmm 422: Banking Law And Practice

Course:Bachelor Of Commerce

Institution: Catholic University Of Eastern Africa question papers

Exam Year:2014

THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
A. M. E. C. E. A

CITY CAMPUS
MAIN EXAMINATION
MAY-JULY 2014
FACULTY OF COMMERCE
DEPARTMENT OF MARKETING AND MANAGEMENT
CMM 422: BANKING LAW AND PRACTICE
Duration 2 hrs
Instructions: Answer Questions ONE and any other TWO questions.
Q1.
a) The Central Bank of Kenya has several options at its disposal to effect monetary policy. With the use of well-reasoned legal arguments explain these methods. (10 marks)
b) What do you understand by the term cheque? Discuss a cheque’s various attributes. (10 marks)
c) Explain the main canons of good lending. (10 marks)
Q2.
a) In Wanga vs Marufuku the banker informed the trustee in bankruptcy of the customer’s husband that his caution registered over the couple’s home had been warned-off (i.e cancelled) in 2011. Under the statutory regime for registration and cancellation of cautions, cancellations could not have taken place without the cautioner having been pt on notice by the land registry. In other words, the trustee must have already known of the information that the bank revealed to him. The customer has new filed a suit in the highcourt against the bank alleging breach of the duty to confidentiality. How do you think the court will decide? Give your reasons. (10 marks)
b) Define a contract of guarantee what are the circumstances under which a guarantor will be discharged from liability? (10 marks)
Q3. Discuss the main amendment in banking legislation in 1985 and what motivated them. (20 marks)
Q4.
a) What is money laundering? Do you think current legislation in Kenya sufficiently protects the public against the ills of money laundering? (10 marks)
b) Explain the reasons for such close regulation of banking in Kenya. (10 marks)
*END*

Cmm 422: Banking Law And Practice Question Paper

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