Understanding Banking and Financial Instruments
Current Account
A current account is an irregular deposit contract for money, with an additional service agreement provided by the cash custodian.
Irregular Deposit
In an irregular deposit, the depositary (receiver) acquires ownership of the thing deposited and promises to return to the depositor at the maturity of the contract, otherwise the same nature or value.
Cheque
Mentions in the clauses of a check passed for payment by:
- Bearer
- On behalf of a particular person with the clause “not to order”
- On behalf of a specific person with or without the clause “to order”
Issuance of an Uncovered Check
The issuance of an uncovered check allows the victim to ask the courts for: The drawer to pay an additional 10% of the unpaid amount, in addition to the damages that have occurred.
Force Exchange
You can claim the amount through a sight exchange.
Track Record
Actions in case of default of a check: You can bring proceedings to claim your cash exchange rate against the person who gave it, against the previous endorsers if any, and against the drawer.
General Crossing
It consists of drawing two parallel bars on the front without specifying anything between them, or including the words “bank”, “company”, or an equivalent term. It indicates that a bank has to charge it.
Special Crossing
This involves inserting the name of a credit institution between two parallel bars. Its goal is that the revenue must be collected by the specified bank.
Check Window
Sometimes current account holders wish to raise funds but do not have the checkbook that allows them to perform the withdrawal.
Referenced and Structured Deposits
Referenced deposit: This is one whose appreciation depends on an index. Examples include EURIBOR and IBEX 35.
Structured deposits: These are often linked to changes in the prices of certain shares.
Commercial Register
The Commercial Register reports to the Ministry of Justice. The law calls for the establishment of a public registry in which certain entities must register. Consulting the commercial registry data can reveal information about many societies, including the number of capital partners and their objectives.
Registry of Unpaid and Delinquent Approvals
The Registry of Unpaid and Delinquent Approvals was a record run through the center of corporate and interbank operations, to which different banks were exclusively attached.
Class Date
Fixed date: The letter ends on the set day.
A certain period after the date: It expires on the deadline, calculated by adding the period to the creation date of the effect.
At sight: Due when the recovery occurs, which must occur within one year after the drawing date. If the effect does not indicate maturity, it is understood to be at sight.
A certain period after sight: The maturity is determined by adding the prescribed period to the date of taking effect or, failing that, to the time of the notary protest or equivalent statement for non-acceptance.
Endorsement
Endorsement is when the policyholder can transfer ownership of the document to another person who, in turn, could pass it to another, and so on.
Way Back
When the bill of exchange is not collected on the specified dates, it is impaired. This means that the holder or the borrower who missed the deadline cannot claim the amount from previous assignors of the title due to the expiration of collection actions arising from the letter.