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Rights
(a) Right to charge a reasonable commission for services and interest upon loans (either by express agreement or by banking custom) the right to charge interest ceases upon death or bankruptcy of the customer.
(b) When payment is required, the customer (creditor) must seek out the bank (debtor). This is a reversal of normal common law rule that a debtor must seek out his creditor.
(c) The customer must make suitable provision or have an agreed limit for any cheques issued.
(d) Unlike most agents, the bank has a general lien over the customer’s securities in its possession, e.g. bills or cheques deposited for collection, promissory notes, coupons, etc.
it appears that the lien arises over any securities deposited with the bank unless there is an express on implied contract inconsistent with lien: Brandao vs. Barnet (1946) the bank’s lien differs from most others, in that it appears to confer an implied power of sale after reasonable notice. For this reason it has been described as implied pledge per lord Campbell
(e) The bank can cease to do business with the customer on reasonable notice;
(f) Right of set off his customers accounts at any time. Set off is a legal right which entities a debtor to take into account the sum immediately owing to him by a creditor when determining the net sum due to the creditor.
Duties
(a) To receive his customer’s money and cheques and other instruments of collection.
(b) To repay the whole or part of the money upon presentation of customer’s written authority during banking hours at the branch where the account is held or at other banks or branches as agreed e.g. under current cheque or credit card arrangements.
(c) the bank will not cease to do business with the customer except on reasonable notice;
(d) To maintains secrecy in respect of his customer’s account and affairs
(e) Not pay away any part of the amount due to the customer without such order or other compulsion recognized by law;
NatalieR answered the question on February 14, 2022 at 12:52