EXAMINATION PACK BANKING LAW AND USAGES LML4807

CONTENTS PAGE QUESTION PAPERS MAY/JUNE 2019 OCTOBER/NOVEMBER 2018 MAY/JUNE 2018 LML4807 BANKING LAW AND USAGE MAY/JUNE 2019 QUESTION 1 Briefly explain the following concepts 1.1. E-money Definition: Electronic purse is a card with an embedded computer chip containing real value in the form of electronic money which was paid in advance, some of which can be reloaded with further funds and which can be used for a range of purposes. Rights and obligations between parties are determined by written terms and conditions of contract and in the absence of dedicated legislation, card issuers unilaterally determine such terms. 1.2. M-money “M” stands for mobile. Entails an e-money transfer service that uses a mobile handset. Customers do not require a conventional bank account. Funds will be kept in an offshore-account and customers will be able to make numerous kinds of transactions much like a credit card. 1.3. Safekeeping A person may leave his or her (valuable) articles with a bank for safe custody on the understanding that the bank will return the same articles on request. (It is a true depositum and the relationship between the parties will be governed by a contract of deposit). It must be noted that the bank is not liable as a depositary for the safety of such valuables because the legal relationship between the parties is governed by a rental agreement. The terms of the rental agreement are usually contained in