79015 Banking Law
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2017 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 79203 Business Law and Ethics OR 70110 Introduction to Law
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This subject aims to provide students with an understanding of the manner in which banking institutions are regulated, dealing with the changes following the deregulation of banking. Topics covered include: a historical introduction to the law relating to banking and to relevant principles; the statutory regulation of banking; the banker-customer relationship; negotiable instruments; and the provision of loans and other banking facilities.
Attention is drawn to the wide range of services currently offered by trading banks and to the wide range of institutions currently offering services of the same kind. There is ongoing discussion of current developments in the area.
Students are expected to develop sufficient working understanding of the areas of law to which they are introduced to be able relevantly to advise in the resolution of problems and the planning of strategies.
The law of contracts and the law of torts is of particular relevance to the subject, but no expertise is required in any other discipline: all necessary concepts and terms are explored in the classroom. Students are encouraged to ask questions whenever the territory seems unfamiliar: discussion in class greatly facilitates individual learning, not only by students but also by the lecturer.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | understand and evaluate central concepts of banking law and its regulation; |
|---|---|
| 2. | understand and appraise the nature of the relationship between banker and customer; |
| 3. | understand the history, operation and utility of negotiable instruments, particularly bills of exchange and also cheques; |
| 4. | understand and be able to apply fundamental principle in relation to giving and taking security. |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following graduate attributes:
- Legal Knowledge
A coherent understanding of fundamental areas of legal knowledge including the Australian legal system, social justice, cultural and international contexts and the principles and values of ethical practice. (1.0) - Critical Analysis and Evaluation
A capacity to think critically, strategically and creatively including an ability to identify and articulate legal issues, apply reasoning and research, engage in critical analysis and make reasoned choices. (3.0) - Research skills
Well-developed cognitive and practical skills necessary to identify, research, evaluate and synthesise relevant factual, legal and policy issues. (4.0) - Communication and Collaboration
Effective and appropriate communication skills including highly effective use of the English language, an ability to inform, analyse, report and persuade using an appropriate medium and message and an ability to respond appropriately. (5.0)
Teaching and learning strategies
As part of your learning experience I encourage you to read the financial press daily – or as often as possible. Probably the best overall coverage is in The Australian Financial Review. The business pages of The Sydney Morning Herald and The Australian are also highly recommended. Doing this will help you to understand the background to this subject and also to see relevant current developments. I shall be keeping my own clipping file throughout the semester, about which I shall talk from time to time, and encourage you to do the same.
Strategy 1 Study of and reflection upon assigned readings before class.
Strategy 2 Exploration and discussion of assigned readings and related ideas in class. This will be encouraged and evaluated by assessing class participation (although the mark will be utilised in calculating a final result only if it assists).
Strategy 3 Development of individual research skills and skills of expression through completion of a research assignment.
Strategy 4 Encouragement of analytical skills through class discussion and preparation for and completion of an in- class test and a take-home problem paper.
Lecture Recording Information
Audio or visual recording of classes for this subject is strictly prohibited unless written approval is sought and given in advance by the Subject Coordinator. Approval for audio or visual recording will usually be limited to medical or hardship reasons, and if approved, must be arranged by the student. Students may only use the audio or visual recording for private study purposes and (to avoid any legal action) permission must be obtained from the Subject Coordinator for any other usage. Given the inter-active nature of classes, any student who does not wish to be audio-taped must advise the Subject Coordinator in advance otherwise permission from students is assumed.
UTS Audio Visual Service Lecture Recording
Lecture tapes are available for purchase from the UTS Audio Visual Services in CM05.D.101 (at the entrance past the “Art of Food” cafe) on the City Campus (Haymarket), Quay Street. Please note that no responsibility is taken for the quality or reliability of this taping service and that no special consideration applications will be considered in relation to problems experienced by students using this taping service. Students may only use these audio-tapes for private study purposes and (to avoid any legal action) permission must be obtained from the Subject Coordinator for any other usage.
Content (topics)
- Banks and Financial Institutions
- Regulation
- Banker and Customer
- The Current Account
- Electronic banking
- Consumer Protection
- Negotiable Instruments: Bills of Exchange and Cheques
- Secured Transactions
Assessment
Assessment task 1: Class Participation
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 3.0 and 5.0 |
|---|---|
| Weight: | 0 or 20% |
Assessment task 2: Research Assignment
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0, 4.0 and 5.0 |
|---|---|
| Weight: | 25% or 20% |
| Length: | 1,000 words |
Assessment task 3: 'In class' Problem Test
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0 and 3.0 |
|---|---|
| Weight: | 25% or 20% |
Assessment task 4: Take-home Problem Paper
| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 |
|---|---|
| Weight: | 50% or 40% |
| Length: | 1,500 words |
Required texts
The prescribed text is Alan Tyree, Banking Law in Australia, 8th edn, LexisNexis Butterworths, 2014.
In addition, two sets of materials have been prepared for purchase; they will be available from The Hub Haymarket, Ground Floor, Building 5, Haymarket.
- 77715 and 79015 Banking Law Supplementary Readings; and
- 77715 and 79015 Banking Law Legislation.
Essential Materials:
UTS Law Faculty Guide to Written Communication www.law.uts.edu.au/students/assessment/submitting.html
UTS Coursework Assessment Policy and Procedure Manual (www.gsu.uts.edu.au/policies/coursewkassess.html)
Recommended texts
No other texts are specially recommended, but see the list of relevant resources under the next heading.
References
Banking
- Australian Finance Law /King & Wood Mallesons, 7th edn, Lawbook Thomson Reuters 2016
- Byles J B Byles on Bills of Exchange and Cheques, 28th edn, Sweet & Maxwell 2007
- Lord Chorley Law of Banking, 6th edn, Sweet & Maxwell 1974
- Conrick B M J L Rajanayagam's The Law relating to Negotiable Instruments in Australia, 2nd edn, Butterworths 1989
- Everett & McCracken Banking & Financial Institutions Law, 8th edn, Thomson Reuters (Lawbook) 2013
- Riley B B Riley's Annotated Bills of Exchange Act and Cheques and Payment Orders Act, 4th edn /Robson K, Law Book 1994
- Weaver P M Banking and Lending Practice, 5th edn, Thomson Rueters (Lawbook) 2016
- Weaver G A The Law Relating to Banker and Customer in Australia, Web - Legal Online
- Weerasooria, W S Banking Law and the Financial System in Australia, 6th edn by Tyree A L, LexisNexis 2006
General
- Bruce, R et al Handbook of Australian Corporate Finance, 5th edn, Butterworths 1997
- Goode R M Commercial Law, 4th edn, LexisNexis 2009
- Latimer P Australian Business Law, CCH Australia 2016
- Turner C Australian Commercial Law, 30th edn, Lawbook Co 2015
- A wide range of material on this subject is available on the internet.
- Web-sites of major institutions and organisations discussed in class are particularly recommended and are easily located.
- Other useful individual sites include: www.aph.gov.au www.oznetlaw.net www.paymentsnews.com and www.bankers.asn.au
- The Wallis Report appears at www.fsi.treasury.gov.au (Comment on the Report by A L Tyree appears at www.austlii.edu.au/~alan/wallisreport. html; much general information can of course be located on www.austlii.edu.au)
- The ACCC Report on Interchange Fees appears on www.accc.gov.au
- The Financial System Inquiry Final Report 2014 appears at http://fsi.gov.au/publications/final-report/
- The Reserve Bank site is www.rba.gov.au - for the payments system go on to /paymentssystem.
- There are many sites with reference to anti-money-laundering; see, for example, www.ag.gov.au/aml/agd - note the subset for the Minister for Justice. See also www.austrac.gov.au and www.aar.com.au/pubs/fmres
- The sites of many leading law firms are also worth investigation. Just for starters… www.aar.com.au
