- 6 Marks
BL – May 2021 – L1 – SB – Q6a – Law Relating to Banking
Evaluate Kash Bank’s refusal to honor Osagie’s cheque and the legal grounds for disclosure of account details.
Question
Osagie is a customer of Kash Bank Plc. He drew a cheque for the sum of N150,000 in favour of Osula. When Osula presented the cheque for payment at the nearest branch of Kash Bank Plc., the teller returned the cheque unpaid, telling him to get back to Osagie. Osula insists that the teller must tell him the state of Osagie’s account.
Required:
i. State THREE reasons for which Kash Bank Plc. could be wrong in returning Osagie’s cheque unpaid. (3 Marks)
ii. State THREE reasons for which Kash Bank Plc. could lawfully disclose the state of Osagie’s account. (3 Marks)
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