FOCUS 1

SECTION 12. BANKING AND PAYMENTS

BLOCK 1. BANKING SERVICES

LEAD-IN

¨ What kind of banking services can you think of?

¨ What is an overdraft? What can be overdrawn? In what cases can clients of banks get an overdraft?

¨ How can a company get a bank loan?

¨ In what circumstances are standing orders used?

FOCUS 1

LETTER 1 (Sending an Account Opening Form)

25th September, 20…

Dear Ms Blake,

Thank you for your letter of the 18th September, 20…. We should of course be very happy to provide banking services.

It will be easy to complete the account opening formalities when you come to London. For the present, we enclose a leaflet about the wide range of services of the National Bank of London.

We are also sending you an Account Opening Form together with the information about London which you requested. Please fill the form in and return it to us.

We are very pleased you have chosen the National Bank of London and we look forward to meeting you when you arrive here in October.

Yours sincerely,

A.M.Taplow,

Manager

Encl.

LETTER 2 (Opening an Account - Confirmation)

3rd October, 20…

Dear Ms Blake,

We are pleased to confirm that we have opened an account in your name with our bank. The account number is 938251510914 and your opening balance is $12,000.

We note that you wish for the time being to receive your statement monthly at your business address after we have credited your salary.

Please find the enclosed cheque book and bank card. I should be glad if you would sign the receipt and return it to us. We are also sending you, under separate cover, another copy of the London Business Directory.

May I take this opportunity once more to welcome you as a customer of the National Bank of London.

Yours sincerely,

A.M.Taplow,

Manager

Encl.

FORM A

Name in full
Nationality and Identification
Date of Birth (if aged under 18)
Occupation
Name & Address of Employer	Telephone No(s)
Residence Address	Telephone No(s)
Spouse’s Name
Name & Address of Spouse’s Employer
Correspondence Address (same as Residence ڤ Business Address ڤ or state otherwise ڤ)
Complete if you relate to a member of Bank staff or to one of the Bank’s directors
Name of Staff: Relationship:	Name of Directors: Relationship:
Details of Introducer: Name: Account No./ Ref.
Statement required as at close of business on ____________________________ and thereafter: weekly ڤ monthly ڤ quarterly ڤ half-yearly ڤ yearly ڤ
Identification on cheques as follows: ڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤڤ

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FORM B

To:_______________Branch Date_______________________ Dear Sirs, I hereby request and authorize you to open and/or continue a current account in my name and in accordance with the following particulars.
FULL NAME	NATIONALITY
TITLE OF ACCOUNT
CHOSEN ADDRESS	POSTAL ADDRESS TEL NOS. Off. Res.
ADDRESS IN COUNTRY OF DOMICILE
PROFESSION	POSITION
IDENTIFICATION (preferably passport details)	Date and Place of Birth
EMPLOYER ADDRESS
references	Name of Other Banker (previous or present)
Introduced by Name Address and Tel. No.
STATEMENTS OF ACCOUNT REQUIRED monthly ڤ quarterly ڤ
CHEQUE BOOKS 25 ڤ 50 ڤ to be ڤ mailed to above address
SPECIAL INSTRUCTIONS (if any)
INITIAL DEPOSIT
I expressly agree and accept to be bound by the Bank’s separate General Conditions for the Operation of Current Accounts (which I hereby confirm having read and understood) and any modification or variation made thereto. CUSTOMER SIGNATURE__________________________________________ PLACE AND DATE
FOR BANK USE ONLY
Account Number	Currency	Type	Date Opened
Approved by (name and title)
CHECK LIST 1. application form completed…….ڤ2. General Conditions signed………ڤ 3.signature cards completed………ڤ4. references received……………….ڤ 5.copy identification documents obtained…………………………………..………………ڤ 6.opening of account approved…...ڤ7. initial deposit received……………ڤ 8.cheque book issued………………ڤ9.computer form completed………..ڤ

LETTER 3 (Opening a Corporate Account)

4th November 20…

Dear Mr Checkitt,

Further to our phone conversation today I would like to remind you that the bank will need to see copies of your company documents. Perhaps you would be good enough to let us have them before we meet to enable us to complete your account opening formalities.

The documents concerned are your Articles of Association, Chamber of Commerce Registration, Municipality Trade Licence. If we have copies of these before our meeting, we could finalise formalities in a very short time.

Meanwhile I also enclose a copy of our Joint Stock Company Account Opening Form for you to complete.

I look forward to meeting you on Monday 11th at 9 a.m. You are also to submit to us a reference from any company who banks with one of our branches. You should finally select people in your company whose specimen signatures will be required on all cheques and state them on the Account Opening Form.

We look forward to your early reply.

Yours sincerely,

A.M.Taplow

Manager

Encl.

LETTER 4 (Letter of Reference)

10th November, 20…

Dear Mr Taplow

STRICTLY CONFIDENTIAL

In reply to your letter dated November 4th we are glad to inform you of our fruitful cooperation with Smith & Co., Ltd. The company in question is well known in the local business community and appears to be a widely reputed firm. They have been established for seven years and so far have conducted an extensive business in our field.

Our company has been doing business with Smith & Co., Ltd. to our mutual benefit on monthly account terms and they have always been prompt in settling accounts. Their credit with us has never exceeded 200,000 USD. But we would have no hesitation in granting them this amount, if asked.

We hope this information will be of importance and use to you. It is given without responsibility on our part. We hope to be of further assistance to you.

Sincerely yours,

Jackie Brown

Sales Manager

LETTER 5 (Opening a Corporate Account – Confirmation)

12th November, 20…

Dear Mr Checkitt,

Following our meeting of 11th November we have pleasure in confirming that we have opened a current account for London Electronics. We also acknowledge that we have copies of all the relevant documents together with your balance sheet.

The account number is 3865083 and we have credited your initial payment of $12,000 to it. You and any member of the LE board as listed on the Account Opening Form are to sign all cheques. I enclose a copy of the form along with your other company documents.

We note that you wish to pay all your staff salaries and wages through us and we look forward to receiving lists of the people concerned. Please let us know the names and account numbers of those employed who have bank accounts. Also we need a list of those who are to be paid in cash.

As to further services and financial advice, we shall be only too happy to help you. May I remind you that all the expertise of the National Bank of London will be at your disposal, not only at head office, but also, if necessary, at all your branches.

Yours sincerely,

Jean Cruncher

cc A.M.Taplow, Manager

Encl.

LETTER 6 (Overdrawing an Account)

15th December, 20…

Dear Mr Angelino

We are writing concerning your account with us which is $5,200 overdrawn. As you know, your overdraft limit is $5,000 and you have gone well above this amount. But we have paid your cheques on this occasion, although the bank does not allow overdraft facilities without prior permission. This is because your account is normally well in credit. However we can go no further and will not honour additional drawings.

If you are in need of loan facilities, our credit officer, Mr Petersen, will be glad to help you. In the meantime, we would be glad if you would reduce your current account to the agreed overdraft limit.

We look forward to hearing from you in this regard, in the near future.

Yours sincerely,

Jean Cruncher

Accounts Manager

LETTER 7 (Customer Complaint Concerning Overdraft)

20th February 20…

Dear Mr Canis,

A/c No 235412

Thank you for my February statement which I have just received. I note that the account is overdrawn by $180 which came as a great surprise because I was expecting it to be in credit. On examining the statement I found that a cheque I had drawn in favour of Madam Butterfly Ltd for $180 was entered twice.

I would be glad if you could look into this matter and make the necessary adjustments. Please also credit me with the interest you have charged for the overdraft. I look forward to hearing from you concerning the above matter.

Yours sincerely,

James.S.Carruthers

LETTER 8 (Standing Orders)

21st October 20…

Dear Sir,

Thank you for your recent letter and cheque book. I enclose your receipt.

While I am in London, my salary will be paid by London Electronics. I have asked them to pay it into my account with you. So there will be enough money to cover some standing orders.

First, I want to establish a standing order to transfer $900 each month as a rental payment to the account of my landlord at the Royal Bank of Scotland at the end of each month. I enclose his name, bank address and account number.

The other matter is insurance for my car. I understand you have an insurance department which gives discounts on premiums to account holders. The car belongs to London Electronics but they asked me to insure it when the current policy runs out next month. I enclose details of the car along with a photocopy of the police registration document. Please quote me your premium for one year’s insurance.

With best wishes,

Yours faithfully,

Linda Blake

LETTER 9 (Granting a Loan)

27 September 20…

Dear Mr Cliff,

With reference to our meeting on 23 September, I am pleased to inform you that the credit for $15,000 which you requested has been approved.

I know we discussed an overdraft, but I think it would be better if the credit were given in the form of a loan at the current rate of interest which is 15 per cent, and which will be calculated on half-yearly balances.

The loan must be repaid by June 20… and we hold the $9,000 IBM ordinary shares and $3,000 local government bonds you pledged as security. We agreed that the other $3,000 was to be guaranteed by Mr. Morgan, your business associate, and I would appreciate it if you could ask him to sign the enclosed guarantor’s form, and if you would sign the attached agreement.

The money will be credited to your current account and available from September 30 subject to your returning both forms by that time.

I wish you luck with the expansion of your business and look forward to hearing from you.

Yours sincerely,

I.Evans

Manager

Encls.