📝 One-liners · 66 cards
Banker customer relationship
What is the legal nature of the relationship between a banker and a customer when a deposit is made?
When a customer deposits money, the relationship is that of debtor and creditor — the bank becomes the debtor and the customer becomes the creditor, as the bank borrows the money and is obligated to repay it on demand.
What is the fiduciary relationship between a bank and its customer when managing investments?
Bank acts as trustee with duty of loyalty and care.
Who is defined as a 'customer' of a bank under general banking law?
A customer is a person who has some sort of account with the bank or who habitually uses the banking services; even a single transaction can establish the relationship if there is an intention to continue dealing with the bank.
What is the legal position of a bank when it accepts valuables for safe custody?
Bank acts as bailee and is responsible for safekeeping.
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