ACCOUNTS. Before a current account is opened for a stranger or a cheque book is given to him, a banker requires an introduc tion to be given by some reliable customer or person known to him.
The most convenient time to arrange matters regarding the conduct of the account is at the very beginning, e.g. in the case of a joint account, where either party is to sign, it is much easier to obtain the necessary authority when the account is opened than it is at a later date ; and with regard to the accounts of companies. a copy of the resolution of the directors as to opening the account and signing cheques is likewise more readily given at the commencement.
Specimens of the signatures of all parties who are authorised to sign should be taken and preserved.
If the account is being transferred from another bank it is useful to know the reason of the change.
When money is placed to the credit an account, the banker becomes the debtor to the customer, and is under an obligation to honour all cheques (if in order) drawn upon the account by the customer to the extent of the funds in the account.
Where a customer has more than one account at the same branch, sec SET ( )FE ; and where he has a( counts at different branches of the same bank. see BR‘NCHE, As to accounts which contain money belong ing to clients or others. see TRUSTEE. •In opening an account with a company the banker should make himself acquainted with its memorandum of association and articles of association. (See ADVANCES, AGENT, APPROPRIATION OF PAYMENTS, AUTHORITIES, BANKRUPT PERSON, CHURCH WARDENS, CLAYTON'S CASE, CLOSING AN ACCOUNT, COMPANIES, CURRENT ACCOUNT LEDGERS, CUSTOMER, DEAD ACCOUNT, DEATH OF CUSTOMER, DEPOSIT ACCOUNTS, EXECU TOR, GARNISHEE ORDER, HUSBAND AND WIFE ACCOUNT, IMPERSONAL ACCOUNTS, INFANTS, JOINT ACCOUNT, LOCAL AUTHORI TIES, MANDATE, NURSING AN ACCOUNT, PARTNERSHIPS, PUBLICACCOUNT, SIGNATURE, SOCIETIES, STOCKBROKER'S LO1NS, etc.)