What do you mean by Banking Agreement
What do you mean by Banking Agreement?
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The banking agreement sets out the rights and obligations of a bank and the customer. Its purpose is to specify who has authority to issue instructions to the bank on behalf of the customer and to allocate the risk of loss associated from difficulties with verifying the customer’s authority and carrying out the customer’s instructions.
An operation of account agreement sets out service charges, checking arrangements, and release of information. Common law imposes additional duties on both parties to a banking contract.
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