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BF 130

This document outlines an examination for a Banking and Finance Certificate. [1] It contains 8 questions testing knowledge of banking law and practice, with Question 1 being compulsory plus 4 additional questions to answer. [2] The questions cover topics such as sources of law, types of agents in banking, duties of bankers and customers, essential elements of a valid contract, anti-money laundering requirements, authority over cheque payments, distinguishing features of banks, and who constitutes a customer of a bank. [3] Candidates are instructed to explain relevant legal principles, cite authorities, and are allowed 3 hours to complete the exam.

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Dixie Cheelo
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133 views

BF 130

This document outlines an examination for a Banking and Finance Certificate. [1] It contains 8 questions testing knowledge of banking law and practice, with Question 1 being compulsory plus 4 additional questions to answer. [2] The questions cover topics such as sources of law, types of agents in banking, duties of bankers and customers, essential elements of a valid contract, anti-money laundering requirements, authority over cheque payments, distinguishing features of banks, and who constitutes a customer of a bank. [3] Candidates are instructed to explain relevant legal principles, cite authorities, and are allowed 3 hours to complete the exam.

Uploaded by

Dixie Cheelo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BANKING AND FINANCE CERTIFICATE

BF 130 – BANKING LAW AND PRACTICE

Date: 10th April 2015 14:00hrs – 17:00hrs

TIME ALLOWED: 3 Hours

INSTRUCTIONS TO CANDIDATES

1. There are eight questions in this papers, answer FIVE questions. QUESTION ONE is
COMPULSORY PLUS ANY FOUR Questions

2. Each question is worth 20 marks

3. Calculators are not allowed in the examination

4. During 15 minutes reading time, you may write on this paper but not on the answer
book.

1. In your answers, you should explain the relevant LEGAL PRINCIPLES INVOLVED
and where appropriate, cite the relevant authority in support of these principles

The total number of questions in this paper is eight (8)

1
QUESTION 1: COMPULSORY:

(i) Outline and describe the different sources of Law.(15 marks)

(ii) What are the major advantages and disadvantages of each source outlined
above.(5 marks)

(Total Marks 20)

QUESTION 2

Describe the following types of agents:

a. Universal agent; General agent; Special agent; Factor; Broker; Del Credere agent
(10 marks)
b. How are these types of agencies created?
(10 marks) (Total Marks 20)

QUESTION 3

A lawyer acting on behalf of acquired information relating to the value of certain assets, the
principal enquired about. The client declined to buy the assets.

The lawyer then used the information he had obtained for his own benefit and acquired the
assets. Given this scenario:

a. Discuss the rights and duties of the client. (10 Marks)


b. Discuss the rights and duties of the lawyer . (10 marks)

(Total Marks 20)

2
QUESTION 4

a. The decided case of Tournier v. National Provincial and Union Bank of


England(1924) brings out a bank’s main duty of responsibility or secrecy.
b. Citing relevant and legislation, discuss in detail exceptions or exclusions under the
major duty of a bank.
(Total Marks 20)

QUESTION 5

(i) List and discuss the essentials of a valid contract. What effect would the absence
of these essentials have on the validity of a contract? (15 marks)

(ii) Giving practical examples, outline the exceptions where these essentials may be
relaxed. (5 marks)

(Total Marks 20)

QUESTION 6

The Anti-Money Laundering Directives Sec. 58 lays requirements for a bank when opening
acconts for corporate bodies.

a. Under these provisons, describe the details that a bank is obliged to obtain from a
would-be customer. (10 marks)
b. Why is it necessary for a bank to obtain thses details?
(10 marks)

(Total marks 20)

3
QUESTION 7

James Zulu counter-manded payment of a cheque by telephone giving the cheque # 12345 for
K2000 payable to Charles Bwalya. He later confirmd by telegram without mentioning the
cheque #.

A cheque # 12346 for K2000 payable to Charles Bwalya was paid by the Bank. James sued
the Bank for paying without authority.

(a ). Given the above scenario, and citing relevant cases and legislation, discuss the position of James
and the Bank. (Total Marks 20)

QUESTION 8

a. Citing relevant cases and legislation, discuss what distinguishes a bank from any other
types ofinstitution? Describe the features and characteristics of a bank. (15 Marks)

b. Citing relevant cases and legislation , who is a customer of a bank?


(5 Marks)

(Total Marks 20)

END OF EXAMINATION

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