This course is earmarked on
providing a strong background on banking law from a domestic and
international perspective. The course looks at the overview of the
banking sector and the law that regulates it covering topics such as
bank and customer relationships, payment systems, banker’s rights and
duties of banker’s customers, security for banker’s advances, negotiable
instruments and exchange control.
Learning Objectives:
By the end of the course, students should be:
• Able to understand the key legal issues in banking law in Zimbabwe and Internationally in an academically motivating and playful learning environment.
Lecture format:
A blended approach to learning is going to be adopted. Face to face interactions and online interactions with the instructor shall be the delivery mode of lectures. All lectures will in general encompass detailed explanation of taught concepts and reading materials given by the instructor. Discussions in the lecture and online will also be adopted. At the end of each chapter, students should post on the forum reflections about the taught chapter and experiences.
Evaluation:
(All components must be completed in order to get a passing grade)
Participation 10% (See note 1)
Assignment (Individual): 10%
Mid-Semester In class Test: 10%
(1 hour)
Final Examination: 70%
(3 hours)
Notes on Mark Allocation:
1. Group assignment presentation and online discussions with 5% each weighting.
The class will be broken into 10 groups of about six students according to our shared goals exercise results in our first class. Each group will be assigned a topic to present in one of the lectures and each presentation will last 30 minutes and may be divided among group members as the group decides. The group as a whole will receive the same participation mark. The group presentation will be awarded 5% of the overall course weight marking. In addition to the group assignment, another 5% will be awarded towards online discussions.
2. Individual Assignment
An individual assignment shall also be given to all students and has a weight of 10%.
3. Mid –Semester In class Test
During the mid of the semester, all students will sit in for an in class test which has an overall weighting of 10%.
4. Final Examination
Students with at least a pass rate of 12% in their overall course work shall be liable to sit for a final examination towards the end of the semester. The final exam weighting will be 70%.
5. Overall rating
For one to be considered to have passed this course, overall marks (course work and examination should be at least 50% and above).
Course Outline
1. Overview of Banks, Banking and Bank Regulation
1.1 Introduction
1.2 Nature of Banking and Statutory Definitions
1.3 Banking structures
1.4 Bank regulation
1.5 Techniques of Prudential Regulation
1.6 Capital Adequacy
1.7 Large Exposure Regulation
2. The Banker and Customer Relationship
2.1 Bank Customer Defined
2.2 Nature of the Bank Customer Relationship
2.3 Duties of the Banker (rights to customers)
2.4 Duties of the Customer (rights to the bank)
2.5 The Banker’s Duty of Confidentiality
2.6 Status Enquiries
3. Principles of Payments
3.1 Basic Elements of Payments
3.2 Payment Methods
4. Liability of a Bank for Negligent Advice
4.0 Introduction
4.1 Law of Delict
4.2 Conditions necessary for liability under Lex Aquilia
5. Security for Banker’s Advances
5.1 Personal security – (Suretyship)
This
course is earmarked on providing a strong background on banking law
from a domestic and international perspective. The course looks at the
overview of the banking sector and the law that regulates it covering
topics such as bank and customer relationships, payment systems,
banker’s rights and duties of banker’s customers, security for banker’s
advances, negotiable instruments and exchange control.
Learning Objectives:
By the end of the course, students should be:
• Able to understand the key legal issues in banking law in5.2 Real security
5.3 Mortgage bonds
5.4 Pledge of movable corporeal property
6. Negotiable Instruments
6.1 Negotiable Instruments Defined
6.2 Types of negotiable instruments
6.3 Cheques
7. Exchange Control
7.1 Regulation under the Exchange Control Act & Regulation
7.2 Buying, selling and retaining foreign currency
7.3 Receiving money from outside Zimbabwe
7.4 Payments to foreign residents
7.5 Remittances of foreign currency
7.6 Liberalization of exchange control laws
READING LIST
NEITHER THE READING LIST NOR LECTURE NOTES MAY BE TAKEN INTO THE EXAMINATION ROOM. STUDENTS WILL BE GIVEN THE RELEVANT ACTS IN THE EXAMINATION
RELEVANT TEXTBOOKS
Arora A Cases and Materials in Banking Law
Chorley & Smart Leading Cases in the Law of Banking
Cooper J The Management and Regulation of Banks [Macmillan Publishers, London, 1984
Cowan Negotiable Instruments in South Africa
Ellinger E & Lomnika E Modern Banking Law, 3rd Ed 2001.
Forsyth CF Caney’s The Law of Suretyship 3rd Ed [Juta, Cape Town] 1982
Gowland, D Monetary Policy and Credit Control [\Croom Helm, London] 1978.
Granston, Ross Principles of Banking Law 2002
Hapgood Paget’s Law of Banking, 12th ed.
Holden, J M The Law & Practice of Banking
Malan & Pertorius Malan on Bills of Exchange, Cheques and Promissory Notes [3rd Ed]
Malan, FR Bills of Exchange, Cheques & Promissory Notes in South Africa
Manase & Madhuku A Handbook on Banking Law in Zimbabwe [University of Zimbabwe Publications,1999].
McLoughlin Introduction to Negotiable Instruments
Penn & Shea Law & Practice of International Banking [London, Sweet & Maxwell], 1998.
Raby P Law Relating to Banking 2nd Edition, 1992
Reed, Cotter et al Commercial Banking, Third Edition [Prentice Hall, New Jersey, 1984.
Reeday The Law Relating to Banking
Richardson Negotiable Instruments
Ryder, Frank et al Byles on Bills of Exchange
Sealy & Hooley Text & Materials in commercial Law [Butterworths] 1994.
Sheldon The Practice and Law of Banking
Stigum & Branch Managing Bank Assets & Liabilities [Dow Jones-Irwin, Illionis] 1983.
Tager Negotiable Instruments.
NB: Key texts for this course are in bold.