LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034  B.Com DEGREE EXAMINATION – COMMERCE

AT 34

SIXTH SEMESTER – NOV 2006

         C  628 – BANKING LAW AND PRACTICE

 

 

Date & Time : 03-11-2006/1.00-4.00           Dept. No.                                                       Max. : 100 Marks

 

 

PART – A                              (8 x 3 = 24 marks)

 

Answer ALL questions.  Each answer should not exceed 50 words.  Each question carries 3 marks.

 

1. How is a savings bank account different from a current account?
2. What is a Banker’s lien?  State its characteristics.
3. Distinguish between secured and unsecured loans.
4. Explain the requisites of a cheque.
5. What is meant by holder in due course?
6. What is a pledge? Explain its characteristics
7. State the principles of good lending.
8. What is a joint account?  How is the account operated?

 

PART – B                              (5 x 8 = 40 marks)

 

Answer any FIVE questions.  Each answer should not exceed one page.  Each question carries 8 marks.

 

1. What are the consequences of wrong entries in the passbook?
2. Explain the different kind of endorsement.
3. Explain the different kinds of crossing.
4. Explain the debtor – creditor relationship between banker and customer.
5. What is a Garnishee order?  What are the rules governing Garnishee order?
6. Distinguish between overdrafts and cash credits?
7. What precautions would you take in lending money to farmers?

 

PART – C                  (2 x 18 = 36 marks)

 

Answer any TWO questions.  Each answer should not exceed four pages.  Each question carries 18 marks.

 

1. Explain the legal protection given to the paying banker.
2. How will lend loans against the following: a) Life insurance policies  b) real estates  c) Stock exchange securities   d) Mortgages
3. What precautions would you take to close the accounts of the customers?

 

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