Page 55 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 14. Executors and Administrators

Features are:
The person named in the will of the deceased person is the executor and account can be
opened on production of probate.

Person appointed by the court is an administrator and must produce letter of
administration.

Payment can be stopped by any one but withdrawal is possible when both join.
Upon death of one executor powers are vested in the surviving executor.
Can borrow for the immediate needs of the property.

15. Trusts

Features are:
Trust deed to be examined.

Insolvency of trustee does not affect trust property.
Transfer of funds from trust account to personal account of the trustee is investigated.
Allow loans only if allowed in the trust deed and after taking personal guarantee of the
trustee.

Trustees must act jointly as they have no authority to delegate unless specifically mentioned.
On the death of one trustee trust property passes to the other trustees, court order required.
Any trustee can stop payment.

16. Societies and Clubs

Features are:

By-laws to be obtained and read carefully.
Registration certificate.
Resolution passed reg opening and conduct of account.
In case of death of an authorized signatory operation stopped till new resolution is received.

Bank can open accounts of unregistered clubs, institutions, societies, associations, schools
etc. after satisfying themselves about reputation, responsibility and standing of the office
bearers.

17. Minor Account

According to law, a person is regarded as a “miner” until he has attend the age of 18 years:

1. The account is made in the name of minor but this signature is observed by the guardian
but the title name of the account remains the name of minor “x” and guardian “y”.
2. According to sec 2 the Contract Act 1872, a minor is qualified to enter in the Bombay high
court declared if qualified person has made a contract for the benefit of the minor. It is a
valid contract.

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