BBG E231 Lecture Notes - Lecture 30: Cheque
Document Summary
The general relationship between a bank and the customer is a contractual one which begins when an account is opened. The contract specifies the obligations imposed on the bank and the customer, although some obligations may be agreed on at a later stage. The bank becomes a debtor of the customer when the customer deposits money in a bank account. Money paid into a bank account becomes the property of the bank and the bank can use the money as it sees fit. It is not obliged to tell the customer how the funds will be used, but it must repay the money on demand. If a bank lends money to a customer, the bank becomes a creditor of the customer and the customer becomes a debtor of the bank. Duties of a the bank to a customer (a)duty to honor cheque.
