MCS 3040 Midterm: Midterm 2 Chapter Summary.docx
10 Apr 2012
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Chapters 25, 26, 27, 20, 21, 22, 13, 14, 15, 16, 17, 18. Banks are under federal jurisdiction and are regulated through the federal bank act. Bank act the main purpose is to ensure the stability and liquidity of banks and to identify and regulate the types of business they are permitted to conduct. A contract that specifies the rights and obligations of a bank and a customer. To specify who has the authority to issue instructions to the bank on behalf of the customer. To allocate the risk of loss resulting from problems with verifying the customer"s authority and carrying out the customer"s instructions. Common law imposes additional duties on both parties to the banking. Provide account information to the customer on a regular basis. The false reporting of income from criminal activity as income from legitimate business. Verify the identity of individual and corporate customers. Verify the validity of customers" business activities.
