3.2 Privileges and Banking Procedures of Commercial Banks

The privileges (the banker's legal armour — the exam's list): (1) the banker's lien (the general lien over the customer's securities-and-documents in the ordinary course — the banker's security-by-operation (the pledge's contrast)); (2) the set-off (the combining of accounts — the mutual debts' adjustment (the same-party-same-right faces)); (3) the protection in payment (the payment in due course protected — the NI law's banker's shelter); (4) the priority faces in recovery (the Loan Recovery Act's fast-track — Unit 7); (5) the secrecy's privilege (the duty- and-its-exceptions — Unit 5.2's companion); (6) the stamp-and-process privileges (the procedures' expediting faces). The banking procedures (the craft's routine): the account's opening (the KYC — the identification, the verification (the AML discipline)); the deposit-and- withdrawal (the mandates, the signatures, the instruments); the cheque's collection (the clearing cycle — the settlement system); the lending's procedure (the appraisal, the security's perfection, the documentation — Unit 6's full treatment); the closure (the account's death-and-dormancy faces).