Chapter 3 - Banker's Special Relationship

A person competent to enter into a contract may authorise another person to open and operate an account on his behalf.
Mandatee – Authorised Person

Document executed by one person (Donor or Principal) in favour of another person (Donee or Agent) to act on behalf of Donor.

Types

Order of court obtained by a judgement creditor attaching the fund belong to judgement debtor in the hand of his debtors, including bank

Bank- Dos & Don’ts under Garnishee Order

Payment of Cheques
- After receive garnishee order, refuse cash payment and in case of clearing, the cheques must be returned
Right to set-off
- Bank has a prior right to set-off
- When lien is marked on fixed deposit receipts, it cannot be attached by a garnishee order
Unclear effects and Subsequent credit in a/c
- Credits received to subsequent to garnishee order are not attachable because debts due or accruing at the time of receipt of order are only attachable
Joint Account
- When a garnishee order is in a single name and customer account is joint:-
  - “either or survivor” – Not Attached
  - “former or survivor” – Attached
- Trust Account
  - Garnishee order against trustee is not attached in trust account
- Partnership Account
  - Personal account of partner can be attached for the firm’s debt, but the firm’s account can’t attached for individual debt of partners
- Liquidator
  - In liquidator garnishee order attached