Banking and finance is one of the oldest areas of law. For as long as currency has been in circulation in the economy systems of rules and regulations have come into existence relating to the borrowing, lending, use, and purposes of money. In the modern law, lending contracts are an essential part of the economy. The business which has been operating for any length of time will soon find that there is a need to either lend money to other people or to borrow money for the purposes of the business. Lending is also an essential concept when analysing personal finances. If you have a credit card, or a mortgage, or even a mobile phone contract or agreement to layby supplied goods you have entered into a credit arrangement which most likely has a credit contract associated with it. Banking and finance law is also a relatively stable error of law because it runs along established principles which have been in operation for a very long period of time.
In Australia, the basic banking and finance laws are the Banking Act 195 (Cth) which creates the system of banking regulation in Australia, defining what a deposit taking institution is and the regulatory framework in which they must operate. This act also defines the eventual provisioning which banks and other financial institutions such as insurance companies should maintain in the course of their operations so the general public can be compensated if there is a systemic failure in the economy. There is also the Cheques Act 1986 (Cth) which defines what institutions may issue cheques, under what circumstances and how they may operate. One of the most basic financial instruments is a mortgage and there is not actually a definition of this under federal law in Australia. However, under New South Wales Law there is a definition of a mortgage found in the Real Property Act 1900 (NSW) “Mortgage” is defined as any charge on land (other than a covenant charge) created merely for securing the payment of a debt. The vast majority of mortgages taken out against real property as security for a debt. A mortgage is registered on title using the standard for from the land and property department and a loan agreement is entered into between the borrower and the lender. Security can sometimes also be taken out in the form of a charge which is registered with the Australia Securities and Investments Commission over a company, if a company has assets.
If you have a query a question about the laws of banking and finance, or you would like to know more in relation to any of these topics we have lawyers available online now who can answer your queries. Banking and finance can be very complicated and thing to deal with on your own and the benefit of legal advice can be enormous. Please do not hesitate to contact us if you have a question. We are more than happy to help with any enquiries you may have.
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