Problems on standing order

Standing order is an instruction of the payer to a bank to make regular payments to the payee on a particular day every month. Standing orders are useful for regular outgoings such as rent, electricity, gas and telephone bills. They are also used for large monthly items over long periods such as mortgage payments or car purchase.

Messrs. Nolestru & Nolestru 67 Eastern Road, Birmingham
	Our ref. Your ref. 7 November 20__ South Bank South Bank House Borough Road London SE1 0AA   Dear Sir, Account No. 9661510   Our landlords, Thomson & Lartinet, inform us that by the present moment they have not received the money due for the two months’ rent.   With reference to the above account we would kindly ask you to give your debit entries for £450.00 and £450.00 on 2 April and 2 May respectively – for the monthly rent payment by standing order established with your bank. Your earliest reply will be appreciated.   Yours faithfully, A.Putley A.Putley Finance Manager

REQUEST FOR AN OVERDRAFT

Accounts may be overdrawn, i.e. more money is taken than there is on credit. This can be done either with the bank’s manager agreement or using special current accounts where overdraft facilities are automatically included for an extra charge.

Messrs. Nolestru & Nolestru 67 Eastern Road, Birmingham
	Our ref. Your ref. 14 November 20__ South Bank South Bank House Borough Road London SE1 0AA   Dear Sir,   With reference to our interview of yesterday, I would ask for your authorization to overdraw my account up to a limit of £5,000.00 at any time.   Please find enclosed as a security share certificates worth £4,000.00.   An audited copy of the company’s current balance sheet, which I imagine you wish to inspect, is attached hereto.   I look forward to hearing from you.   Yours faithfully, A.Putley A.Putley Finance Manager

ADVICE OF GRANTING AN OVERDRAFT

SOUTH BANK South Bank House Borough Road London SE1 0AA
	Our ref. Your ref. 14^th November 20__ Nolestru Ltd. 67 Eastern Road, Birmingham     Dear Sir,   With reference to your letter of today’s date we inform you of granting you an overdraft of £5,000.00 available till 13^th March 20__ subject to the usual proviso that there is no change in the position as at present existing.   Interest charged at 11% will be calculated on the weekly balances. Relying on your prompt clearing the outstanding balance on the due date, we remain   Faithfully yours, B.Daracott B.Daracott Manager

FOCUS 2. Comprehension questions.

? What is documentary collection?

? What are the stages of documentary collection?

? What are the advantages of documentary collection?

LETTER 1.1

? Which bank is collecting payment?

? Which bank is remitting payment?

? Which party draws the collection order?

? Which party is to pay?

? Are there any specific instructions?

LETTER 1.2

? Which is the collecting bank?

? Which is the remitting bank?

? In what way will the expenses be paid?

LETTER 1.3

? What is the message of the letter?

? Should Vnesheconombank take protest action?

LETTER 1.4

? What does Vnesheconombank inform Banca Commerciale Italiana of?

? What is enclosed with the letter?

LETTER 1.5

? On what condition will the bank indemnify the Seller?

? What amount can be paid out under the guarantee?

? In what form is the request for payment to be presented?

LETTER 2

? Name the types of bank guarantees.

? What are payment guarantees for?

? What are performance guarantees for?

LETTER 2.1

? Which party to the contract has written the letter?

? What problems have the Sellers faced?

LETTER 2.2

? Which party to the contract has applied for the guarantee?

? What is guaranteed by the bank?

LETTER 2.3

? Which party to the contract has applied for the guarantee?

? What is guaranteed by the bank?

? When does the guarantee come into force?

? When does the guarantee become invalid?

LETTER 3.1

? What are you to submit to open a current account with a bank?

LETTER 3.2

? What is a standing order?

? What are the problems raised?

LETTER 3.3

? What is an overdraft?

? On what conditions can you get permission to overdraw your account?

Дата добавления: 2015-10-30