Negotiable Instruments

Course details

This program introduces participants to the legal aspects of commercial paper used in bank’s day-to-day transactions. The course will focus on the practical side of negotiable instruments as well as the legal procedures in case of dishonor or any forgery regarding the instruments.

Objectives

On completion of the course, participants should be able to apply the acquired knowledge of the law and practices relating to negotiable instruments and their relevance to the banking practice.

Content Highlight

• Attribute of negotiable instruments
• Types of negotiable instruments
• The legal requirements of an instrument (Cheque)
• Endorsements and crossings
• Rights and duties of each party to an instrument
• Risks facing the collecting bank
• Protections available for banks on third party instruments collection and conversions
• Risks facing the paying bank
• Protections available for banks on payment of third party instrument
• Protections against wrongful dishonor or incorrect clearance procedure
• Situation where the collecting bank is also the paying bank
• Summary Bills of Exchange Act 1882 or Cheques Act 1957
• Cleaning Mechanisms
• Rules Relating to Cheque Abuse

Target Audience

• Tellers and personnel involved in front office and customers’ account services; Staff handling instruments processing particularly in clearing and related departments

Course Structure

• Lectures, discussions, case studies and examination