The University of New South Wales

go to UNSW home page

Handbook Home

Law of Banking - JURD7333
 Landscape with Library

Faculty: Faculty of Law
School:  Faculty of Law
Course Outline: See below
Campus: Kensington Campus
Career: Postgraduate
Units of Credit: 6
EFTSL: 0.12500 (more info)
Indicative Contact Hours per Week: 4
Enrolment Requirements:
Prerequisite: LAWS1001 and LAWS1011 and Corequisite: LAWS2311; Prerequisite: JURD7101 and JURD7111 and Corequisite: JURD7211
Excluded: LAWS3133
Fee Band: 3 (more info)
Further Information: See Class Timetable


The Law of Banking provides an introduction to relevant legal principles and to aspects of the practice of banking. The course is concerned directly with the relation of banker and customer and with contemporary transactional techniques.

Central to a traditional view of the subject are the rights and duties of bankers and customers, generally, and in relation to the issuing and presentation of cheques. This course will address bills of exchange, as a foundational financial instrument, but not cheques which are declining in importance. It also addresses the more important contemporary banking instruments and transactions, such as syndicated lending, derivatives, project finance, and asset securitisation.

Recommended Prior Knowledge

No expertise is required beyond that in compulsory law subjects: Contracts and Torts will be found to be of particular relevance.

Course Objectives

The objectives of the course are to acquaint students with the rationale for competition law, and give them an understanding of key statutory provisions and case law to provide practical understanding of competition law and policy.
Students will be required to develop sufficient working understanding of the areas of law to which they are introduced to be able to advise in the resolution of problems and the planning of strategies.

Main Topics

  • The Australian Banking System, Prudential Supervision and Capital Adequacy
  • The Constitutional Basis of Federal Banking Regulation
  • Types of Lending
  • The Concept of Security and Common Forms of Security: Pledge, Lien, Legal Mortgage, Equitable Charge, etc, plus the law of legal and equitable assignment
  • Bills of exchange
  • Banker-Customer Duties
  • The Current Account
  • Syndicated Loans, with a focus on the conflicts in the role of the Agent Bank
  • Loan sales: the law of novation, assignment and participation
  • Project Finance
  • Asset securitization
  • Derivatives
  • Letter of Credit Law: commercial and standby credits and the Uniform Customs & Practice for Documentary Credits, and the Fraud Rule in Commercial and Standby Credits
  • High Finance


Class participation 10%
Research Essay 40%
Final examination 50%
Note: Students will be given the option of not submitting a research essay and instead sitting a final examination which counts towards 90% of the assessment.

Course Texts

  • McCracken & Everett, Banking and Financial Institutions Law, 7th edn, Thomson, 2009

Refer to Course Outline provided by lecturer.

URL for this page:

© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.