This is a study of the law governing the bank–customer relationship pertaining to the disposition of funds by cheques and credit transfers, covering both paper-based and electronic payments. This book addresses, with various degrees of detail, common law, civilian, and ‘mixed’ jurisdictions, particularly in Australia, Canada, England, France, Germany, Israel, Italy, Japan, South Africa, Switzerland, and the United States. In addition to the description of the law in these jurisdictions, the book contains an in-depth analysis of the common issues and the responses to them, in light of desired p ... More

This is a study of the law governing the bank–customer relationship pertaining to the disposition of funds by cheques and credit transfers, covering both paper-based and electronic payments. This book addresses, with various degrees of detail, common law, civilian, and ‘mixed’ jurisdictions, particularly in Australia, Canada, England, France, Germany, Israel, Italy, Japan, South Africa, Switzerland, and the United States. In addition to the description of the law in these jurisdictions, the book contains an in-depth analysis of the common issues and the responses to them, in light of desired policies. Accordingly, an evaluation of the various rules and proposals for reform are integral parts of the study. The book is divided into four chapters. Chapter 1 is an overview of the various legal systems and fundamentals in banking and payment law, in an overall historical context. Chapter 2 deals with the banking relationship, within which collections and payments occur. It highlights the customer contract, the deposit transaction, the mandate authorizing bank collections and payments, and the debt resulting from entries to the current account. Chapter 3 covers the performance of the mandate. It discusses extensively laws governing the payment and collection of cheques and credit transfers, in the context of actual clearing and settlement mechanisms, particularly large-value transfer systems in developed countries. Chapter 4 is on payment systems misuse through fraud, either in the initiation payments or in misdirecting them. It discusses cheque forgery, unauthorized electronic funds transfers, forged cheques endorsements, and misdirected funds transfers.