Banking Law :

A bank is a company which has been given special permission or a license to act as a bank. The essential role of a bank is to connect those who have capital (such as investors or depositors), with those who seek capital (such as individuals wanting a loan, or businesses wanting to grow).Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. In our state for a company to be given a license to act as a bank certain requirements are made of them which are called regulations which they must comply with .

There are general principles of which regulate our affairs with the bank regardless of whether we are consumers or not which are called Codes. Some principles which bind the Bank are as follows:

To act within the context of its authorisation

The bank who deals with your account must ensure in all it s dealings with you that it acts and behaves within the context of its authorisation as a regulated entity .

To act honestly and fairly
Your bank is obliged to act honestly fairly and professionally and in your best interests.

To act with care and skill and in your best interests
Your bank is obliged to act with due skill care and diligence in your best interests

Not to mislead
Your bank should ensure that it does not recklessly negligently or deliberately mislead you as to the advantages or disadvantages of a particular product or service .

Has in place systems to comply with Code
Your bank should ensure that it has and employs effectively the resources procedures and systems and control checks necessary for the Code .

Collects information from you
Your bank should ensure that it seeks from you information relevant to the product or service which you request .

Makes Full Disclosure
Your bank should ensure that it makes full disclosure of all relevant information including all charges in a way that seeks to inform you their customer .

Avoid Conflict of Interest
Your bank should avoid conflicts of interest

Handle complaints speedily
Your bank should correct errors and handle complaints made by you their customer speedily efficiently and fairly .

Compliance with Code for its outsourced activity
Your bank should ensure that if they outsource some activity that this complies with the requirements of this Code .

Prevent access to financial services
Your bank should ensure that it does not through its working practices prevent access to basic financial services.

Undue Influence
Your bank should not exert undue pressure or undue influence on any of its customers .

Spirit and Letter of Code
Your bank should comply with the spirit and letter of the Code .

Code of Conduct of Mortgage arrears

This Code came into being in February 2009 and February 2010 under Section 117 of the Central Bank Act 1989..It applies to mortgage lending activity to consumers in respect of their principal private residence or primary residence within the State .It covers all regulated entities within the State. Lenders are obliged to comply with this Code as a matter of law . Lenders are also obliged to demonstrate that they comply with this which is to be read as one with the above Consumer Protection Code. Mortgage lenders are obliged to adopt flexible procedures for the handling of arrears cases aimed at the assistance of the borrower . A mortgage arrears problem arises as soon as the borrower fails to make a mortgage payment by the due date The Lender under this Code is obliged to seek contact with the borrower and with co operation with the borrower plan for clearing such arrears as had developed .The bank were fixed with an obligation to examine all viable options open to the borrower during which consideration be given to the repayment capacity of the borrower , previous repayment history and the equity remaining in the property .The lender is obliged to explore with the borrower one of the following alternative repayment measures.

• The amount of monthly payment to be changed
• Deferring payment for a period
• Extending the term of the mortgage
• Changing the type of mortgage
• Capitalising arrears and interest
  

Which ever of the options pursued the lender is obliged to provide the borrow with a clear explanation in writing .At the borrowers request the lender should liaise with a third party nominated by the borrower .The borrower to be made aware of other options such as trading down refinancing , On the missing of a third repayment the lender was obliged to issue a formal demand and be advised in writing of the following:

• The total amount of arrears
• Advice as regards the consequences of failing to respond
• Where arrears persists the lender may reserve the right to enforce but must wait twelve months from when the arrears first arise .
• The lender must continue to monitor the repayment arrangement and is obliged to give the borrower a relevant contact point
• The lender must notify the borrower of any legal action for repossession

Keeping records

A lender must keep records of all the steps taken and produce these to the financial regulator if required .

Code of Conduct for business Lending to Small and Medium enterprises

This Code applies to all business lending excluding credit Unions to small and medium enterprises when providing

• Overdrafts
• Loans
• Term loans
• Leasing
• Hire Purchase
• Invoice Discounting

Banks and regulated bodies are required to comply with this code as a matter of law who must show compliance to the regulator with this Code

We set out below some of the provisions of this Code

• Is my Firm Covered
  An explanation of Small and Medium enterprises is set out in the European regulations namely a firm with fewer than 250 staff with an annual turnover not exceeding 50 million and an annual balance sheet total not exceeding 43 million .
• Annual review
  A regulated entity must offer its customers an option of an annual review meeting to include all credit facilities and security .
• Refused credit Application
  When an application for credit is denied the bank must explain clearly why the credit facility was declined
• Change of Interest
  Where a regulated entity changes the interest margin it must notify borrowers of such change
• Personal Guarantee
  Any enforcement of a personal guarantee over a principal private residence must be in accordance with the Code of Conduct with Mortgage Arrears .

When a regulated entity seeks collateral to support a lending proposition it must clearly explain the possible implications for the guarantor of giving such a guarantee

A regulated entity must promptly return any security held when all facilities have been paid

In Writing

Information required to be provided by the Code must be provided on paper

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