Study Guides (248,269)
Canada (121,449)
Law (389)
LAWS 3201 (5)
all (1)


18 Pages
Unlock Document

LAWS 3201
All Professors

class two legal sources of liabilitycan arise as a consequence of tort law between a bank and customer intentional and unintentional negligence Also in contract law Also criminal liability statutory liabilityout of the bank act fiduciary relationships but not when you open a bank account but only when the bank give you business advice ect secure debt and unsecure debt floating charge The litigation process how one goes about suing someone if there is a default the state of claim state of defense affirmation of documents What the lender fears the most is bankruptcy they wont get their assets back The people are in unsecure debt are in a better position class three Constitutional issues that arise in banking lawinternational treaties practical level it is hard to enforce the treaty obligations of some countriesConstitution of Canada the law must comply or they are ultra vires refuse to enforce a law that is not in compliance with the charter StatutesRegulations passed by various legislatures subject to the constitution Common Law judge made law to fill in the gaps where statutes do not apply or the interpretation of statutes dont applyCAN banking laws should be consistent with our international treaty laws NAFTA chapter 14 deals with financial services They enforce the national treatment obligation basically CAN has to give the banks of US and Mexico to the same conditions as the CAN banks As the most favored nation treatment if CAN is giving a break to another country it must give the same treatment to the US and Mexico BanksException article 14 10 parties to the treaty can discriminate against the other party banks for prudential reasons to protect investorsif require for the countries financial health to discriminate it is okayloopholeWTO has a similar framework for banks the general agreement in trade and services same concepts as the NAFTA and the loopholes are so huge that it really has no relevance to banking law in CAN Bank of international settlements global regulations of the banking system of the world controlled by all the ministers of finance of the world Casebook p 2 s 91 BNA should be lawful for the senatehouse of commons to makes laws for the peace order and good government of CAN s 15 incorporation of banks and paper money S 18 bills of exchange and promissory notes s 21 bankruptcy and insolvencys 92 in each province can make laws s 13 property and civil rights in the provinceUnited Dominions Trust v KirklandShows how the definition of banking evolves over time Lord Denning takes a view on what banking is 3 points p 5 Tenant v Union Bank of CanadaT is an unsecured creditor Union bank is the secured creditor T gets very little out of the insolvency Constitutional argument to say that UB is an unsecured creditor as well and that they would get the same share of money Its about creditor fighting about the funds when some banker has gone broke not about the constitutional issue CK borrows money PC with a written agreement PC gets a lean on the lumber with a warehouse receipt to be secured In order to get his loan they signed the back of the warehouse receipt to secure the lumber PC assigns his credit to the federal bank sells his interest in the lumber and the loan federal bank took over PCs position the warehouse receipt was endorsed to PC to transfer the interest to someone else The federal bank goes broke its assets include those of PCs lumberloan Another bank union bank takes over the federal bank so UB takes over the endorsement CK goes broke union bank has a secured interest in the lumber The bank act at that time allowed the bank to get authorization with just a warehouse receipt the provincial law required additional requirements T argued that it should fall under provincial civil property not the federal bank act The judge said he need to know of the taking of security is banking or not banking he decides it is both the PL and the FL apply Doctrine of paramouncy the FL prevails the bank was entitled to take the security of the warehouse receipt p10BW CaseBW was an entity incorporated under a special act in Manitoba Set up to help minors and mentally incompetent people to run their affairs not set up to be a bank but it would take care of peoples monies acted as a trust BW went broke the creditors argued that this entity is illegal and want the money to be shared evenly Unsecured C v secured C try to argue that BW was in the business of banking and if that is banking how could a province incorporate them because it is a federal jurisdictionThe judge said it was not in the business of banking it did a few things that banks to it held the money on a fiduciary basis therefore it couldnt be a bank The statute was correctly passed Concept they never held themselves out to be a bank suggests that they were not a bank
More Less

Related notes for LAWS 3201

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.