Banking law in Australia

790 Pages·2017·4.225 MB·English

by  Alan L. Tyree, CCH Australia Limited,

Banking Law in Australia
Ninth Edition
Alan L Tyree
BSc, MSc, PhD, LLB (Hons)
LexisNexis Butterworths
Australia
2017
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National Library of Australia Cataloguing-in-Publication entry
Author: Tyree, Alan L.
Title: Banking Law in Australia.
Edition: 9th edition.
ISBN: 9780409344882 (pbk).
9780409344899 (ebk).
Notes: Includes index.
Subjects: Banking Law — Australia — textbook. Banks and
banking — Australia — textbooks.
© 2017 Reed International Books Australia Pty Limited trading as
LexisNexis.
First edition 1990; Second edition 1995 (reprinted 1997); Third edition 1998
(reprinted 2000); Fourth edition 2002; Fifth edition 2005; Sixth edition 2008;
Seventh edition 2011; Eighth edition 2014; Ninth edition 2017.
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Preface
Surveys show that banking law teachers do not teach much about cheques
these days. As those who know me will appreciate, I think this is a pity. In
spite of that, LexisNexis tells me that textbooks must respond to the market,
no matter how reluctant the author might be. As it turns out, I was not too
reluctant, since reducing the material on cheques has given me the opportunity
to indulge my other interest: payment and payment systems.
Payment systems are often misunderstood even by experienced lawyers. Part
of the misunderstanding is due to the language. Students sometimes find it
difficult to believe there are no funds transferred in a ‘funds transfer’.
Journalists love to talk about the ‘hidden’ banking system that ‘mysteriously’
transfers funds outside the established system, never realising that the legal
principles involved are precisely the ones that govern the ‘normal’ banking
system.
The second major change from the 8th edition is the extended coverage of
the Personal Property Securities Act 2009. The Act is a complex piece of
legislation, replacing 71 Commonwealth and state Acts. Parliament recognised
the complexity at the time of drafting, and s 343 calls for a review of the
operation of the Act after three years.
Bruce Whittaker conducted the review and his comprehensive report,
tabled on 18 March 2015, makes 394 recommendations. The report is a must-
read for anyone interested in personal property securities. Though expanded,
the chapter must be considered as a brief introduction only. Security problems
may be complex, and specialist texts should be consulted.
In Paciocco v Australia and New Zealand Banking Group Ltd [2016] HCA 28,
the High Court settled the long, sorry saga of the euphemistically named
‘exception fees’ in favour of the banks. In so doing, the High Court redefined
and expanded the notion of contractual penalties: see the discussion in Chapter
4 and the comments by Sackville AJA in National Australia Bank Limited v
Dionys as Trustee for the Angel Family Trust [2016] NSWCA 242. The High
Court also considered the question of ‘change of position’ as a defence to a
claim for money paid under a mistake of fact: see Australian Financial Services
and Leasing Pty Ltd v Hills Industries Ltd [2014] HCA 14 and the discussion in
Chapter 10.
Books are not written in a vacuum. I am grateful to the staff at LexisNexis.
They have been efficient and helpful always. I am also very grateful to my
editor, Rebecca Gumbley, for saving me from endless embarrassment. I
(reluctantly) acknowledge that any remaining errors are mine alone.
Finally, and most of all, I am grateful to my wife Allison for her years of
support and encouragement.
Katoomba
February 2017
Table of Cases
References are to paragraph numbers
20991 Ontario Ltd v Canadian Imperial Bank of Commerce (1998) 8 PPSAC
135 …. 14.8
A
A J Bekhor & Co Ltd v Bilton [1981] 2 All ER 565 …. 16.2.6
A/S Awilco of Oslo v Fulvia SpA di Navigazione of Cagliari (The Chikuma)
[1981] 1 WLR 314 …. 9.3.6, 9.14, 9.14.3
Abbatt v Treasury Solicitor [1969] 3 All ER 1175; [1969] 1 WLR 1575 ….
3.8.1
Abigail v Lapin [1934] AC 491 …. 13.2.5
Abou-Rahmah v Abacha [2006] EWCA Civ 1492 …. 4.6.6
Accolade Wines Australia Ltd, In the matter of [2016] NSWSC 1023 ….
14.12.3
Adelaide Cooperative Society Ltd, Re [1964] SASR 266 …. 3.10.5
Adour Holdings Pty Ltd v Commonwealth Bank (1991) ATPR 41–147 ….
6.3.5
Aiken v Short (1856) 1 H & N 210; 25 LJ Ex 321 …. 10.3, 10.3.2, 10.4.2
Airservices Australia v Ferrier [1996] HCA 54 …. 4.11.3
Akbar Khan v Attar Singh [1936] 2 All ER 545 …. 4.2.2, 5.4.5
Akins v National Australia Bank (1994) 34 NSWLR 155 …. 15.3.1
Akrokerri (Atlantic) Mines Ltd v Economic Bank [1904] 2 KB 465 …. 4.9,
16.1.4
Aktas v Westpac Banking Corp Ltd [2007] NSWSC 1261 …. 4.12.6
— v — [2009] NSWCA 9 …. 6.3.2
— v — [2010] HCA 25 …. 6.3.2, 8.7.2
Alan (W J) & Co Ltd v El Nasr Export & Import Co [1972] EWCA Civ 12
…. 17.6
Albert Del Fabbro Pty Ltd v Wilckens and Burnside Pty Ltd [1971] SASR 121
…. 4.11.4
Albion Insurance Co Ltd v GIO (NSW) [1969] HCA 55 …. 15.2.2
Alexandre v New Zealand Breweries Ltd [1974] 1 NZLR 497 …. 13.2.5
Alington Group Architects Ltd v Attorney-General [1998] 2 NZLR 183 ….
4.5.1, 12.2.2
Alliance Bank v Kearsley (1871) LR 6 CP 433 …. 3.8.3
ALYK (HK) Limited v Caprock Commodities Trading Pty Ltd [2012]
NSWSC 1558 …. 17.10.2
American Express International Inc v Commissioner of State Revenue [2003]
VSC 32 …. 9.15.4
Amey v Fifer [1971] 1 NSWLR 685 (NSWCA) …. 3.8.1
Andrews v Australia and New Zealand Banking Group Ltd [2012] HCA 30
…. 4.5.2
Anglican Development Fund Diocese of Bathurst, Re [2015] NSWSC 185 ….
12.3.2
Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 70 ALR
641; [1987] HCA 15 …. 15.3.2, 15.3.3
ANZ Banking Group Ltd v Karam [2005] NSWCA 344 …. 15.3.1
ANZ Savings Bank Ltd, Re; Mellas v Evriniadis [1972] VR 690 …. 3.2.4,
4.2.2, 4.12.2, 4.12.3
Aotearoa International v Westpac Banking Corp [1984] 2 NZLR 34 ….
17.14.2
Arab Bank v Barclays Bank (DCO) [1954] AC 495 …. 4.4.1, 4.12.7
— v Ross [1952] 2 QB 216 …. 5.5.5, 5.5.8
Arcedeckne, Re (1883) 24 Ch D 709 …. 15.2.2
Ardern v Bank of New South Wales [1956] VLR 569 …. 4.7.3
Armco (Australia) Pty Ltd v Federal Commissioner of Taxation (1947–1948)
76 CLR 584 …. 8.10.1
Armstrong v Commonwealth Bank of Australia [1999] NSWSC 588 ….
15.3.1
Aronis v Hallett Brick Industries Ltd [1999] SASC 92 …. 9.2.3
Arrow Transfer Co Ltd v Royal Bank of Canada (1972) 27 DLR (3d) 81 ….
4.9.3, 7.4.1, 8.8.3
ASB Bank Ltd v South Canterbury Finance Ltd [2011] NTCA 368 …. 13.2.6
Associated Alloys Pty Ltd v ACN 001 452 106 Pty Ltd [2000] HCA 25 ….
14.3
Associated British Ports v Ferryways NV [2009] EWCA Civ 189 …. 12.2.6
Astley v Austrust Ltd [1999] HCA 6 …. 7.4.3
Attenborough v Solomon [1913] AC 76 …. 4.6
Attorney General of Belize v Belize Telecom Ltd [2009] UKPC 10 …. 3.5.1
Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (In
Liq) [1978] HCA 45 …. 4.4.3
Australia and New Zealand Banking Group Ltd v Curlett Cannon and Galbell
[1992] 2 VR 647 …. 16.1.2
Australia and New Zealand Group Ltd v Westpac Banking Corporation (1988)
78 ALR 157; [1988] HCA 17 …. 4.3.2, 4.3.3, 9.8.2, 9.12.2, 9.14.4,
10.4.1, 10.6
Australian and New Zealand Banking Group Ltd v Aldrick Family Company
Pty Ltd [2010] NSWSC 1000 …. 6.2.7
Australian Bank Ltd v Stokes (1985) 3 NSWLR 174 …. 15.3.3
Australian Competition and Consumer Commission v Chaste Corp (in liq)
[2003] FCA 180 …. 16.2.3
Australian Elizabethan Theatre Trust, Re; Lord v Commonwealth Bank of
Australia (1991) 30 FCR 491 …. 4.3.1
Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd [2014]
HCA 14 …. 10.2, 10.3.1, 10.4.1, 10.4.3
Australian Independent Distributors Ltd v Winter [1964] HCA 78 …. 1.6,
3.10.5
Australian Prudential Regulation Authority v Siminton (No 6) [2007] FCA
1608 …. 3.10.2
Automobile Finance Co of Australia Ltd v Law [1933] HCA 52 …. 5.9
Avon County Council v Howlett [1983] 1 WLR 605 …. 4.9.2
B
Bachmann Pty Ltd v BHP Power New Zealand Ltd [1998] VSCA 40 …. 17.5
Backhouse v Charleton (1878) 8 Ch D 444 …. 3.8.3
Baden, Delvaux and Lecuit v Société Générale pour Favouriser le
Développement du Commerce et de l’Industrie en France SA [1992] 4 All
ER 161; [1983] BCLC 325 …. 4.6.4
Bagley v Winsome and National Provincial Bank Ltd [1952] 2 QB 236 ….
4.12.3
Baker v ANZ Bank Ltd [1958] NZLR 907 …. 8.7.2
— v Barclays Bank Ltd [1955] 1 WLR 822 …. 8.8.4
Ballabil Holdings Pty Ltd v Hospital Products Ltd (1985) 1 NSWLR 155 ….
16.2.3
Baltic Shipping Co v Dillon [1993] HCA 4 …. 9.14.5
Banbury v Bank of Montreal [1918] AC 626 …. 6.3.4, 6.3.5
Banco Santander SA v Banque Paribas [2000] EWCA Civ 57 …. 17.12.2,
17.14.4
Bank of Adelaide v Lorden (1970) 127 CLR 185 …. 3.7.5, 15.3.2
Bank of Chettinad v Commissioner of Income Tax, Colombo [1948] AC 378
…. 3.10.1
Bank of England v Vagliano Bros [1891] AC 107 …. 7.4.2, 8.7.3
Bank of Ireland v Evans Charities Trustees in Ireland [1855] 5 HL Cas 389 ….
7.4.2
Bank of New South Wales v Barlex Investments Pty Ltd (1964) 64 SR (NSW)
274 …. 4.12.4
— v Brown [1983] HCA 1 …. 4.5.1, 12.2.2
— v Commonwealth (1948) 76 CLR 1; [1948] HCA 7 …. 2.2.1, 3.10.1,
3.10.5
— v Goulburn Valley Butter Co Pty Ltd [1902] AC 543 …. 4.6.1
— v Laing [1954] AC 135 …. 3.2.4, 3.2.5, 8.7.1
— v Murphett [1983] 1 VR 489 …. 9.8.2, 10.5.2
— v Rogers [1941] HCA 9 …. 15.3.1