No, no legal limit exists on the number of account a customer can maintain with a bank. A customer can have any number of accounts with a bank as may be agreed between him and the bank. SEE ANGYU V. MALAMI (1992) 9 NWLR (264) 242
No, no legal limit exists on the number of account a customer can maintain with a bank. A customer can have any number of accounts with a bank as may be agreed between him and the bank. SEE ANGYU V. MALAMI (1992) 9 NWLR (264) 242
A cheque is said to be dud, where no money or insufficient fund exist in the account upon which the cheque is to be executed. NATIONAL BANK V. OPEOLA (1994) I NWLR (PT 319) 126
A dishonoured cheque will incriminate the person issuing it when such person issues same as payment for the purpose of obtaining or inducing the delivery of anything capable of being stolen or to obtain credit either for himself or any other person, and when such cheque is presented to the bank for payment, at least 3 months from the date it was issued it gets dishonoured by the bank because no fund or insufficient fund exist in the issuer’s account. SEE SECTION 1 DISHONOURED CHEQUES (OFFENCE) ACT CAP.D11 LAWS OF THE FEDERATION OF NIGERIA 2004
No, however such person should have to prove satisfactorily to the court that when he issued the cheque he has reasonable ground for believing in fact that it would be honoured if presented for payment within the period specified in the Act. SEE SECTION 1 (3) DISHONOURED CHEQUES (OFFENCE) ACT CAP.D11 LAWS OF THE FEDERATION OF NIGERIA 2004
Yes, the bank can consolidate all the different accounts operated by a particular customer except there is an express or implied agreement that the account should be kept separate, at which point reasonable notice must be sent to the customer and the customer must give his consent for consolidation. SEE ANGYU V. MALAMI (1992) 9 NWLR (264) 242
Notwithstanding that the money stands in credit to the customer’s account, the bank has the custody and control of the money. The customer only has the contractual right to demand for repayment. PURIFICATION TECH. (NIG) LTD V. AG LAGOS STATE & 31 ORD (2004) 9 NWLR (PT 879) 665
No, except where there is a previous agreement between the bank and the customer, a bank is not obligated to allow its customer to overdraw from his account. See F.B.N LTD. V. MOBA FARM LTD (2005) 8 NWLR (928) 492 AT 515
No, a bank has no right by law to deduct the sum from the director’s account to offset the liability of the company. ODUNDEJI V. IBWA LTD (1993) 2 NWLR (278) See GOLDAY CO. LTD V. CO-OPERATIVE DEV. BANK PLC (2003) FWLR (PT 153)
Where the issuer of a cheque insists that the cheque was regular and not a dud one, the issuer has every legal right to call for an explanation by the banker. It is the bank who says that a cheque is dud that has the burden to prove it. SEE NATIONAL BANK V OPEOLA (1994) 1 NWLR (PT 319) 126
Ordinarily, payment by cheque can serve as a discharge of debt in a contract agreement. However, where such cheque is dishonoured by the bank, the debt for the principal sum revives. Where necessary, interest becomes payable. SEE R V. TURNER (1974) AC (368)