Bank account and bank deposit agreements
Bank account agreement
In accordance with paragraph 1 of Art. 845 CC under the bank account agreement the bank undertakes to accept and credit incoming funds to the account opened to the client (the account holder), money, to execute the client's orders for transferring and issuing the corresponding amounts from the account and conducting other operations on the account.
A bank account agreement is consensual, bilateral and free of charge (unless the contract explicitly provides for its reimbursement).
The subjects of the bank account agreement are a bank or other credit institution licensed to perform this type of banking operations (clauses 1, 4, item 845 GK) and client (account holder). The client under this contract can be any individual or legal entity, however the regime of bank accounts opened for different types of entities is different. So, for example, legal entities do not open current accounts, and branches of legal entities or citizens who do not have entrepreneurial status - settlement accounts.
Since a legal entity always participates in a bank account contract, this contract must be concluded in simple writing (clause 1, Article 161 of the Civil Code).
According to paragraph 1 of Art. 846 CC when concluding a bank account agreement to a client or a person specified by him opens an account with the bank on terms agreed upon by the parties. The procedure for opening an account with a bank is determined by banking rules.
The main duty of the bank is to accept and credit incoming to the account, open to the client, funds, as well as fulfill his orders to transfer and issue the relevant amounts from the account and conduct other operations on the account. The bank is obligated to perform transactions for the client that are prescribed for the accounts of this type by law, banking rules established in accordance with it, and the customs of business turnover applied in banking practice, unless otherwise specified by the contract (Article 848 of the Civil Code). The Bank shall not be entitled to determine and control the use of the client's funds and establish other restrictions on his right to dispose of funds at his own discretion (paragraph 3 of Article 845 of the Civil Code).
The client is obliged to execute and submit to the bank documents that comply with the requirements of the law, banking rules and bank account agreements (payment orders, checks, etc.) and certified in a proper way (signed, for example, in accordance with samples of signatures in the customer's bank card or using an electronic digital signature). Such documents certify the rights of persons carrying out, on behalf of the client, an order for the transfer and withdrawal of funds from the account (clause 1 of Article 847 of the Civil Code). The authority of these persons is verified by the bank in the manner determined by banking rules and the contract with the client.
A bank account contract may include a provision on the bank's payment from the account, despite the lack of funds. In such cases, the bank is considered to have granted the client a loan for the corresponding amount from the date of payment. The rights and obligations of the parties related to crediting of the account, are determined by the loan and credit rules, unless otherwise stipulated by the bank account agreement (Article 850 GK).
According to Art. 857 CC on the bank entrusted the duty to keep the secret of the bank account, operations on it and information about the client. Information constituting bank secrecy , can be provided only to the customers or their representatives, as well as submitted to the credit history bureau on the grounds and in the manner prescribed by law. State bodies and their officials are provided with such information only in cases and in the manner prescribed by law. In case of disclosure by the bank of information constituting bank secrecy, the customer whose rights are violated shall have the right to demand compensation from the bank for the losses incurred.
In the cases provided for in the bank account agreement, the customer pays for the bank's services to perform transactions with the funds in the account. The fee for the services of the bank, if it is established by the agreement, may be charged at the end of each quarter from the customer's funds held in the account, unless the parties agree otherwise (Article 851 GK).
The bank can use the funds available on the account, guaranteeing the client's right to dispose of these funds without hindrance (clause 2, article 845 of the Civil Code). In this regard, as a general rule, the bank is obliged in accordance with Art. 852 GK to pay interest for the use of funds, being on the account, the amount of which is credited to the account. Crediting of the amount of interest to the account must be effected within the terms established by the contract, and in case such terms are not established by the contract, after each quarter. Interest is paid by the bank in the amount determined by the contract, and in the absence of an appropriate condition in the contract - in the amount normally paid by the bank on demand deposits (Article 838 of the Civil Code). At the same time, according to the terms of the contract, the bank may not pay interest for using the client's funds.
According to Art. 858 Civil Code restriction of the rights of the client to dispose of funds in the account is allowed only when seizing the funds in the account or suspending transactions on the account in cases provided for by law.
The bank is obliged to perform the relevant operations on the account in accordance with the law terms (article 849 GK).
In accordance with Art. 854 GK, the funds are debited from the account by the bank on the basis of the client's order. In the presence of funds on the account, the amount of which is sufficient to meet all the requirements for the account, the writing-off of these funds from the account is carried out in the order of receipt of the client's orders and other documents for cancellation, unless otherwise provided by law, i.e. in the order calendar order.
If the funds on the account are insufficient to meet all the claims against him, the write-off of funds is in order of priority established by law. A total of six such queues are established. The funds are debited from the account according to the requirements related to the same queue in the order of the calendar order of receipt of documents (item 2 of Article 855 of the Civil Code).
According to paragraph 2 of Art. 854 CC write-off of funds on the account without the client's order is allowed by court decision, as well as in cases established by law or stipulated by the agreement between the bank and the client.
The legislation noted a number of cases when the writing-off of funds from the account can be made without the client's order (indisputable write-off).
The bank is responsible for improper transactions on the account. Such liability occurs in cases of late payment to the account of funds received by the client, their unreasonable write-off by the bank from the account, as well as failure to comply with the instructions of the client to transfer funds from the account or to issue them from the account (Article 856 CC). For improper performance of operations on the account, the bank is obliged to pay interest to the client in the manner and in the amount provided for in art. 395 CC. Interest is payable on the amount for which the operation was improperly performed. Penalty, applied on the basis of Art. 856 GK, is credit. Accordingly, if the customer is inadequately executed transactions on the account, losses are incurred, then he is entitled to recover them from the bank in the part not covered by the forfeit.
The contract of the bank account is terminated on the written request of the client at any time.
Unless otherwise provided by the contract, if there is no money for two years in the client's account and transactions on this account, the bank has the right to refuse to perform the bank account agreement, in writing about this customer. A bank account agreement is considered terminated after two months from the day the bank sends such a warning, if money has not been received to the client's account during this period.
At the request of the bank, the bank account agreement can be terminated by the court in the following cases:
• when the amount of money stored in the client's account is below the minimum amount provided for by bank rules or the contract, if such amount is not restored within a month from the day the bank warns about it;
• In the absence of transactions on this account during the year, unless otherwise provided by the contract.
The bank account contract is terminated from the moment of receipt of the client's application for cancellation of the contract or closing of the account, if a later date is not specified in the application itself. The termination of the bank account agreement serves as the basis for closing the client's account. The balance of the account is issued to the client or, upon his instructions, transferred to another account no later than seven days after receiving the client's application for termination of the contract (Article 859 GK).
Depending on the volume of settlement operations that the bank's client is authorized to perform, the accounts are divided into settlement, current and special accounts.
Current accounts are currently open to all legal entities, as well as to citizens-entrepreneurs. From the settlement account, bank customers are entitled to carry out all types of settlement transactions (non-cash settlements). In addition, banks provide them with cash-in-cash services (receiving and issuing cash) in accordance with the rules established by law. Legal entities and citizens-entrepreneurs have the right to open an unlimited number of settlement accounts.
Current accounts are opened to organizations that do not have the rights of a legal entity, including branches and representative offices of legal entities. In addition, separate subdivisions of legal entities located outside their location may open settlement subaccounts, which, in their legal regime, are almost identical to current accounts. With regard to current accounts and settlement sub-accounts, these organizations can carry out a limited range of settlement transactions related to the primary activities of a legal entity. From these accounts, social payments are not made (salary, vacation, etc.), and the banks in which they are open do not provide cash services to these customers.
Current accounts are also in banks opened to citizens. On such accounts, citizens are entitled to make payments in a non-cash order, except for payments related to the performance of their entrepreneurial activities.
Specific types special accounts have their own peculiarities (budget, currency, loan, deposit). Interbank (in particular, correspondent) accounts are also allocated.
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