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1、SECTION: 3General Requirements on Security Forms TABLE OF CONTENTSContentPageSection 3General Requirements on Security Forms40Overview423.1 General requirements on Bank Security forms433.2 General requirements on other legal documents 463.3 Rules and regulations regarding the signing and dating of S

2、ecurity documentation483.4Rules and regulations regarding changes and amendments on Security documentation543.5Summary 59OverviewLearning Outcome The following is the Learning Outcome of this section: 3.Identify and Interpret General Requirements on Security Forms.Learning ObjectivesThe Learning Obj

3、ectives are as follows: On completion of this section, you will be able to: 3.Identify and Interpret General Requirements on Security Forms by: Comprehending and interpreting general requirements on Bank Security forms Comprehending and interpreting general requirements on other legal documents Know

4、ing the rules and regulations regarding the signing and dating of Security documentation Knowing the rules and regulations regarding changes and amendments when dealing with Security documentation Assessment Criteria To demonstrate achievement of the Learning Objectives you are required to meet the

5、following criteria and/or provide the following evidence:Comprehending and interpreting general requirements on Bank Security forms Identify and interpret general information on Bank forms Comprehending and interpreting general requirements on other legal documents Identify and interpret general inf

6、ormation on Legal documentsKnowing the rules and regulations regarding the signing and dating of Security documentation Demonstrate knowledge of the rules and regulations regarding signing and dating of Security forms Knowing the rules and regulations regarding changes and amendments when dealing wi

7、th Security documentation Demonstrate knowledge of the rules and regulations regarding changes and amendments of Security forms 59Version: 03/2004IB CP8 LG3.General Security Form Information3.1 General requirements on Bank Security formsIntroduction When a customer cannot meet his obligations to the

8、 Bank, a banker is normally left with no choice but to realise the Security. It can be very costly if the Security is unrealisable due to some flaw or error made on a Security form. It is therefore important to ensure that all formalities are met to perfect the Security and that all Security documen

9、ts are correctly completed. In this section we are only going to look at the general information on Bank Security forms. General requirements It is important for all Security documents to be completed and signed fully and correctly in order to ensure the legal enforcement thereof. Always make use of

10、 original documents and forms. The utilisation of copies of documents must be limited to the absolute minimum. Where it is necessary to take in copies; these must be clearly legible and must in all respects be the same as the original document. To rule out any disagreement and possible risk, the fol

11、lowing requirements must be strictly adhered to: Complete information on Security documentation in preferably black permanent ink or ballpoint pen Information must be clearly legible and may not be deleted, erased or “tippexed” out Documents must be completed in full before being signed Complete doc

12、uments in the language preference of the customer (Afrikaans or English is available) Use the space to write down any other general requirements regarding the Banks Security forms that you can think of that was not mentioned. Completion of addresses The following points should be remembered about th

13、e addresses on Security forms: Always complete the full street address or business address of the parties involved A postal address (box number) is not acceptable The addresses stated on the Security form serve (in juristic terms) as the “domicilium citandi et executandi” commonly known as the domic

14、ile In the case of legal action the summons will be served at this address or any other address of which the Bank was notified in the case of a change of address A summons for obvious reasons can not be served to a postal box as the person involved is not staying or working thereIdentification of th

15、e signatory To prevent possible fraud, it is essential that every signatory on a Security document must identify himself/herself by means of his/her identity document regardless whether he/she is dealing in his private capacity or on behalf of an entity. The only acceptable proof of identity is the

16、identity document and a certified copy must be made and kept on file. No other form of identification, for example Security or similar cards with photos, may be accepted. You can identify the customer by: Comparing the person (appearance and age) with the information (photo and date of birth) on the

17、 identity document Always ensure that there has been no tampering with the identity documentIf the abovementioned guidelines are strictly followed, no one can claim that someone else has used their name in a dishonest way or, that a minor has represented himself as someone of age, by giving a false

18、date of birth. Summary It is important for all Security documents to be completed and signed fully and correctly in order to ensure the legal enforcement thereof A postal address (box number) as domicile is not acceptable The only acceptable proof of identity is the identity documentUse this space t

19、o make notes or draw a mind-map of the important points that you would like to remember regarding the general requirement on bank forms. 3.2 General requirements on other legal documents Introduction The preparation of other legal documents apart from the Banks forms requires legal knowledge.These d

20、ocuments should be drawn up by the Banks Group Legal Services or by the Banks Attorneys and sent to Higher Authority for approval before being signed by the customer or the Bank. Write down a few examples of other legal documents that you have come across during your experience as a Securities offic

21、ial. Discuss these with a Co-worker or Coach.Use this space to make notes or draw a mind-map of the important points that you would like to remember regarding the general requirement on other legal documents. 3.3 Rules and regulations regarding the signing and dating of Security forms The role of th

22、e witness A Security document is not invalid merely for the reason that two witnesses have not signed it except in cases where it is required by law for example the consent of a spouse, when signing as surety.It has become common practice in South Africa, in general, including banks, to require Secu

23、rity and other documents to be attested by two witnesses. The witnesses must ensure that the surety signs the document in their presence. Witnesses must also sign in the presence of signatories. Witnesses can testify as to the authenticity of the signature(s) in court when and if the validity of the

24、 signature is in question. Bank official as witness When a Bank official signs as witness on a document, he confirms the following: The signatory identified is the person who signed and whose name appears in the document. (It is therefore the witnesss duty to determine the signatorys identity person

25、ally) The signatory signed the document in his presence (The witness thus confirms that it is the persons signature whose name appears on the document)It is obvious that the witness cannot fulfill his role if he: Did not identify the signatory personally by means of his identity document Was not pre

26、sent when the signatory signed the documentIn the unlikely event of two Bank officials not being available to act as witnesses during the signing of the document any other person may sign as witness, providing his full names, residential address and his identity number is noted on the document. Unde

27、r no circumstances will a signature as witness be made by someone who was not present during the signing of the document it will be worthless. Signing of Security documents The table below indicates who has to sign/co-sign Security documents, when dealing with the following entities: EntitySigned by

28、IndividualsMinors Assisted by legal guardianMajors Signs in his/her own capacity with the required consent where applicableBlind or illiterate persons It is necessary that the entire contents of a document to be signed by a blind or illiterate person be explained to him/her prior to the signing ther

29、eof In the case of a dispute, the Bank will have to prove that the person was up to date with the contents of a document and the only way to achieve this will be to lead independent evidence to this effect A commissioner of oaths, who should not be a bank official, will, therefore, have to bear test

30、imony by certifying the document to the effect that the contents thereof have been read to the blind or illiterate person and that he/she fully understands the contents thereofSole ProprietorOwner signs in his private capacity with the required consent where applicable. PartnershipsAll the partners

31、must sign the documents on behalf of the partnership in the same order as their names are stated on the documents.CompaniesThe following wording must be inserted into the space provided for the signatures, e.g.:On behalf of Bexter Brick-Works (PTY) Ltd The directors empowered by the resolution sign

32、on behalf of the company. Signing of Security documents Below, we continue with the table to indicate who has to sign/co-sign Security documents, when dealing with the following entities: EntitySigned byClose CorporationsThe following wording must be inserted into the space provided for the signatur

33、es, for example:On behalf of Lindas Dream Nails CCSecurity documents are to be signed by the persons authorised to do so in Form 25 (b), except for Suretyships, which must be signed by all the members or alternatively the Bank will accept a resolution signed by all the members authorising one or mor

34、e of their members to sign a specific Suretyship.Co-operativesThe name of the Co-operative must be stated in the space provided for the signature:On behalf of (Name of the Co-operative)The directors empowered by the resolution, sign on behalf of the Co-operative.Informal BodiesThe name of the Body m

35、ust be stated in the space provided for the signatures: On behalf of (Name of the Body)The persons sign on behalf of the Body.TrustsThe name of the Trust must be stated in the space provided for the signatures: On behalf of (Name of the Trust)All the trustees (as stated in the resolution) must sign

36、the documents. All the trustees must sign the resolution.(extract from the minutes).You can refer to the Securities Manual (SCM para. 3.8 to 3.11) for more information on the signing of Security forms. Legal consequences of the signatory The provision of Security is a legal act and therefore the per

37、son who performs such an act, must be capable of contracting. It is of the utmost importance to ensure that the signatory complies with all the necessary requirements as mentioned under Contractual Capacity. The authority of an agent Under a general power of attorney an agent (representative) of a p

38、rincipal (person) can: Enter into most transactions on behalf of his principal He can also sign Security documents and give Securities on behalf of his principal if authorised to do so The Bank does not usually accept such documents but requires its own forms for this purpose to be signedDating of d

39、ocuments Documents must be dated on the day of signature thereof. A Banker who is found guilty of backdating a document runs the risk of no reliance to be placed on the document in a court case, if it is proven that the document was purposefully backdated. Security documents completed at other branc

40、hesIn instances where it is necessary for a customer to call at another branch for the completion of Security documents, notify the branch concerned in advance.Telefax the following full details to the branch: Security documents required Mandates required Full names of beneficiaries (in the case of

41、Suretyships) together with registration numbers of companies or close corporations where applicable Full name, address and telephone number of customer who must sign the document Name and telephone number of a contact person, at the instructing branch, to whom queries may be referredThis will allow

42、the branch to prepare the forms in advance and will eliminate inconvenience to both the customer and the staff of the other branch.Alternatively, the instructing branch may prefer to complete the relative documentation and send it to the other branch where the customer will merely sign it. A confirm

43、ation of signature should also be send to the other branch. In such instances, do not overlook to furnish the address and a telephone number at which the customer may be contacted.Authentication of documents signed in another countryDocuments which are executed outside the country in which they are

44、required and which may require to be proved in a court of law or registered in a deeds office in that country, should be authenticated in accordance with the law of that country. For this purpose, Namibia, Lesotho, Swaziland and Botswana are other countries. Activity Read through the following scena

45、rio carefully and answer the questions Give a short motivation of your answersTom, working at ABC Branch approaches Jerry (a co-worker) to sign as witness on a Suretyship form.Toms customer, Clive (married in community of property) is waiting in another office and has already signed the Suretyship f

46、orm. May Jerry sign the Suretyship form as witness? Apart from the signatures of the witnesses, does Tom need to obtain any other signatures?Summary Witnesses must testify as to the authenticity of the signature(s) in court Under no circumstances will a signature as witness made by someone who was n

47、ot present during the signing of the document be acceptable It is of utmost importance to ensure that the signatory complies with all the necessary requirementsUse this space to make notes or draw a mind-map of the important points that you would like to remember about the rules and regulations rega

48、rding the signing and dating of Security forms. 3.4 Rules and regulations regarding changes and amendments on Security formsAmendments to printed wordingNo forms may be altered without the written approval of Higher Authority. All alterations to the printed wording of the Banks forms are to be authe

49、nticated by full signatures of the signatories, the witnesses and also by the Bank. In view of the confined space the Banks name should be inserted in the margin next to the alteration as follows: “For FirstRand Bank Limited .Manager.”Amendments to wording other than printed The incorrect spelling o

50、f the name of a beneficiary or an incorrect date, only requires the signatures of the signatories and witnesses, unless the alteration is to a document signed by the Bank as a party. In such an event the alterations must be authenticated fully as in the event of alterations to the printed wording. N

51、on-standard SecuritiesWhere Security taken is not on one of the Banks standardised Security forms or a standardised form has been amended, the Security is known as “non-standard”.The Banks Security is typically weaker as a result of this and it is important that the Security Registers, Limits, Forms

52、 and Correspondence to Higher Authority, indicate this by citing “Non-standard” after the Security item. Think of a situation where youve dealt with a “non-standard” Security In the space provided list the Security and explain the reason why this was not considered a standard Security If you have no

53、t dealt with “non-standard” Securities ask your co-workers or coach to provide you with an example Discuss your answer with your Coach or co-workerRecording of Banks registration numbers During August 1999 notice was given by the Registrar of Companies and Close Corporations in the Government Gazett

54、e (notice No. 1762 Gazette 20327) that: The registration numbering of Companies and Close Corporations would be amended in line with Y2K requirements and to standardise numbering conventionsThe Registrar of Companies has issued a certificate confirming that the Banks registration number has changed to 1929/001225/06. The Bank restates that other numbers such as 1905/001255/06 are not correct and this number must in all instances be a