BANKING AFFAIRS

Detailed explanation-1: -Banker’s Lien is not available against Term Deposit Receipt in Joint Names when the debt is due only from one of the depositors.

Detailed explanation-2: -They need to ensure that only the legitimate amount is retrieved from the borrower’s asset (only when allowed by law) and in line with Sections 170 & 171 of the Indian Contract Act, 1872. A banker should not execute a right of lien when there is an express Contract.

Detailed explanation-3: -Fixed deposits used to collect interest from another bank are exempt from lien rights. The investments that are made into a specific trust. Any security that is still in the banker’s possession to pay for an advance that will ultimately be denied.

Detailed explanation-4: -A banker’s lien is a legal right arise in many common law jurisdictions of a bank to exercise a lien over any property in the custody of the bank as security. Lien is of two types: Particular lien. General lien.

Detailed explanation-5: -Another important feature of the relationship between the banker and the customer is that a banker may in the absence of a contract to the contrary, retain as a security for the general balance of account any goods or securities bailed to him. There are two types of Lien Rights : Particular Lien. General Lien.