Page:Halsbury Laws of England v1 1907.pdf/790

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Bankers and Banking.

568

Part

III.

Sect. Sect. Sect.

Sect. Sect.

BUSINESS OF BANKING— continued.

page

Letters of Credit and Documentary Bills 14. Circular Notes 15. Safe Custody oe Valuables 16. Discounting Bills 17. Advances by Bankers Sub-sect. 1. Loan 13.

Sub-sect.

2.

Sect. 20. Sect. 21.

Sect. 22.

Guarantees Charges and Commissions

623

626 627 629 630

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630 630

632 632 634 635 635 637 638

Advances

Sub-sect. 1. Legal Mortgages Sub-sect. 2. Equitable Mortgages Sub-sect. 3. Bills and Notes Sub-sect. 4. Other Negotiable Securities Sub-sect. 5. Stock and Shares Sub-sect. 6. Policies of Life Assurance Sub-sect. 7. Documents of Title to Goods

Sect. 19.

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Overdraft

Sect. 18. Securities for

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632

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-639

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Banker's Obligation to Secrecy Production, Inspection etc. of Bankers' Books

643

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643

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644

For Bills of Exchange and Negotiahle Instruments generally, see title BiLLS OF Exchange, Promissory Notes and Negotiable Instruments.

Part Bank.

Banker.

Clearing bank.

Banking business.

I.

—

Definitions.

1147. A bank is a corporation, partnership or individual carrying on the business of banking. A banker is such individual or a member of such partnership but for some purposes the term " banker" includes corporations or partnerships carrying on the business of banking {a). Clearing banks are such as are entitled to the privileges of the

London Clearing House

(6).

1148. The business of banking, strictly speaking, is the receipt of money from or on account of a customer (c), to be repaid on demand In the case of banks lawfully or when drawn on by cheque {d). issuing

bank notes such issue

is

a part of banking business.

See Bills of Exchange Act, 1882 (45 & 46- Vict. c. 61), s. 2. to the practice of the London Clearing House, see Boddington v What is Schlenker (1833), 4 B. & Ad. 752, and the Clearing House Rules, 1902. known as the country clearing is the department of the London Clearing House which deals with country cheques. There are local clearing houses at many (a)

(6)

As

provincial centres. (c) As to what constitutes a customer, see pp. 595, 596, 'post, {d) Foley^ v. Hill (1848), 2 H. L. Cas. 28, at p. 43. The collection of crossed cheques, being a, statutory necessity, is part of the business of banking, but is included in the above definition. The numerous other functions undertaken by modern bankers, such as payment of domiciled bills, custody of valuables, and discounting bills, do not come within the strict definition of banking business.