A Joint account is an account opened in the names of two or more parties, being persons other than trading partners, personal representatives, or trustees. The most common type of a joint account is that of a husband and a wife. A mandate is required, signed by all the parties covering the following:
a) Withdrawal of moneys. The general rule that a debt owed by several parties may be discharged by payment to any one of them does not apply between a banker and customer. Consequently, if a banker is required to release moneys against the signatures of less than all, then the mandate must authorize this. This also applies in respect of delivery of custody items.
b) Joint and Severally (J & S) liability. Where any overdraft is contemplated the mandate must contain an express admittance of J & S liability by the account holders
c) Borrowing. In respect of overdrafts the account holders must agree that where less than all parties are authorized to sign on the account, then any overdraft which is created must be the responsibility of all.
NatalieR answered the question on February 15, 2022 at 05:17
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