Banker Customer Relationship: 28 Revision Flashcards

Which legal framework primarily governs the Debtor-Creditor relationship?

Direct Answer

Indian Contract Act, 1872

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When a bank provides a loan to a customer,
what is the role of the bank in this relationship?

Direct Answer

Creditor

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What term is used for the customer who pledges movable assets as collateral for a loan?

Direct Answer

Pledger

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Under which act is the Pledger-Pledgee relationship primarily governed?

Direct Answer

Indian Contract Act, 1872

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Which legal act governs the Mortgagor-Mortgagee relationship?

Direct Answer

Transfer of Property Act, 1882

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What is the role of the Hypothecatee in a hypothecation agreement?

Direct Answer

The bank that receives the security

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Which act is specifically relevant to hypothecation transactions?

Direct Answer

SARFAESI Act, 2002

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Which law governs the Principal-Agent relationship between a banker and customer?

Direct Answer

Indian Contract Act, 1872

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When a customer entrusts valuable items to the bank for safekeeping,
what is the bank's role?

Direct Answer

Trustee

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Which legal framework is relevant when a bank manages the estate of a deceased person?

Direct Answer

Succession Laws

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When a customer entrusts goods to the bank for safekeeping (not as a pledge),
what is the customer's role?

Direct Answer

Bailor

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When a bank provides financial advice to a customer,
what is the bank's role?

Direct Answer

Advisor

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What is the role of the bank when it issues a guarantee on behalf of a customer?

Direct Answer

Indemnitor

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Which legal framework is primarily involved in assignment scenarios?

Direct Answer

Contract Law

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Which type of transaction establishes a Debtor-Creditor relationship between a bank and its customer?

Direct Answer

When a customer deposits money

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What is the customer's role in a Creditor-Debtor relationship when they receive a loan?

Direct Answer

Debtor

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Which of these documents is most likely to define the specifics of a Creditor-Debtor relationship?

Direct Answer

Loan agreement

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What is the nature of the assets in a Pledger-Pledgee relationship?

Direct Answer

Movable assets/securities

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What type of property is involved in a Mortgagor-Mortgagee relationship?

Direct Answer

Immovable property

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Who holds the mortgage on the property?

Direct Answer

Mortgagee

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How is possession handled in a Hypothecator-Hypothecatee relationship?

Direct Answer

Possession remains with the customer

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Which law specifically addresses actions a bank can take in case of default in a hypothecation agreement?

Direct Answer

SARFAESI Act, 2002

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What is the customer known as in a Principal-Agent relationship with the bank?

Direct Answer

Principal

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When the bank acts on behalf of the customer, it is fulfilling the role of an:

Direct Answer

Agent

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What is the bank's role when appointed to manage the estate of a deceased person?

Direct Answer

Trustee/Executor/Administrator

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When a customer entrusts valuables to the bank for safekeeping (not as a pledge or in a locker), the bank is the:

Direct Answer

Bailee

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When a bank provides a guarantee or indemnity, it acts as the:

Direct Answer

Indemnitor

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Which law is most relevant to the concept of Indemnity in banking transactions?

Direct Answer

Contract Law

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