Get premium membership and access questions with answers, video lessons as well as revision papers.
a) The account must be opened in the association's name. The name must be registered by the registrar of societies. Therefore an original and a certified copy of the society's certificate of name registration must be produced.
b) The bank requires a copy of the association's constitution to peruse and for record purposes. The account mandate should be in conformity therewith.
c) Account mandate should confirm that at a meeting of the association it was resolved that an account be opened and cheques signed by the parties authorized. The mandate requires certification by the chairperson and secretary.
d) Borrowing should not be allowed unless rules exist that allow borrowing. These rules must be perused to ascertain any borrowing formalities and restrictions e.g., the rules may provide that any borrowing can only be undertaken if members
resolve to do so in a general meeting. A copy of the resolution is required.
e) It is always advisable to take security for any borrowing as on default it may
prove difficult or legally impossible to recover moneys from individual members.
NatalieR answered the question on February 22, 2022 at 08:06
- Highlight the rule surrounding clients account held by a solicitor incase of solicitor's death.(Solved)
Highlight the rule surrounding clients account held by a solicitor incase of solicitor's death.
Date posted: February 22, 2022. Answers (1)
- Highlight accounts held by a solicitor(Solved)
Highlight accounts held by a solicitor
Date posted: February 22, 2022. Answers (1)
- Tracy, June and Jim are partners in a firm known as Uperion. They operate a jointaccount with a joint and several liability mandate with...(Solved)
Tracy, June and Jim are partners in a firm known as Uperion. They operate a joint
account with a joint and several liability mandate with your bank. Two months ago, you
were notified that Tracy was admitted at a mental hospital. A month later you received
another notice informing you that June had retired from the partnership. Jim and Bob
wish to include Grace as a new partner. Explain the effect of each of the following in the
operation of the partnership account.
(i) Tracy's lunacy
(ii) June's retirement.
Date posted: February 15, 2022. Answers (1)
- Briefly write short notes on Joint Accounts(Solved)
Briefly write short notes on Joint Accounts
Date posted: February 15, 2022. Answers (1)
- Write brief notes on a minor as an account holder, as a member of a partnership and as a joint account holder(Solved)
Write brief notes on a minor as an account holder, as a member of a partnership and as a joint account holder
Date posted: February 15, 2022. Answers (1)
- Distinguish between a holder, a holder for value and a holder in due course.(Solved)
Distinguish between a holder, a holder for value and a holder in due course.
Date posted: February 15, 2022. Answers (1)
- List several instances where banks have been held negligent when collecting cheques(Solved)
List several instances where banks have been held negligent when collecting cheques
Date posted: February 15, 2022. Answers (1)
- Define the term Endorsement and outline types of Endorsement giving examples in each.(Solved)
Define the term Endorsement and outline types of Endorsement giving examples in each.
Date posted: February 15, 2022. Answers (1)
- In which ways does crossing a cheque protect the drawer?(Solved)
In which ways does crossing a cheque protect the drawer?
Date posted: February 15, 2022. Answers (1)
- A cheque is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand. Discuss 4 different types...(Solved)
A cheque is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand. Discuss 4 different types of cheques
Date posted: February 15, 2022. Answers (1)
- Briefly Outline Features of a cheque(Solved)
Briefly Outline Features of a cheque
Date posted: February 15, 2022. Answers (1)
- Write short note on Types of Negotiable Instruments.(Solved)
Write short note on Types of Negotiable Instruments.
Date posted: February 15, 2022. Answers (1)
- Why are references required when opening an account?(Solved)
Why are references required when opening an account?
Date posted: February 15, 2022. Answers (1)
- Distinguish between a gratuitous bailee and a bailee for reward. (Solved)
Distinguish between a gratuitous bailee and a bailee for reward.
Date posted: February 15, 2022. Answers (1)
- List circumstance where a banker must cease to honor customers cheque on presentation(Solved)
List circumstance where a banker must cease to honor customers cheque on presentation.
Date posted: February 15, 2022. Answers (1)
- The creation of bailor/bailee relationship arises where a person called the bailee is given
control of the property of another person called bailor for a specific...(Solved)
The creation of bailor/bailee relationship arises where a person called the bailee is given
control of the property of another person called bailor for a specific purpose e.g., where a
customer of a bank deposits valuables in safe custody with the intention that on request
they will be returned to him/her. However, whether a banker is a bailee for reward or for free he/she must take the highest standard of care expected from person undertaking business of banking. Briefly explain the Liability attaching to bailee.
Date posted: February 15, 2022. Answers (1)
- Discuss Bank’s procedure on receipt of order or summons from high court.(Hint: Summon is also known as garnishee order)(Solved)
Discuss Bank’s procedure on receipt of order or summons from high court.(Hint: Summon is also known as garnishee order)
Date posted: February 15, 2022. Answers (1)
- In which ways may revocation/determination occur in the Power of attorney?(Solved)
In which ways may revocation/determination occur in the Power of attorney?
Date posted: February 15, 2022. Answers (1)
- Identify forms of Power of Attorney(Solved)
Identify forms of Power of Attorney
Date posted: February 15, 2022. Answers (1)
- Highlight circumstances for termination of the bank's authority to pay(Solved)
Highlight circumstances for termination of the bank's authority to pay
Date posted: February 14, 2022. Answers (1)