Finance law Essay Example | Topics and Well Written Essays - 500 words

Finance law - Essay Example zation of banking and the system of accounts but is not applicable to the relationships between the banking institutions and recipient’s, not loans or between clients settling accounts. The law covers the following subsections, legal regulation of an organization’s income and expenditures. It deals with the budget laws, foreign exchange legislation and the legal grounds of credit in institutions, companies or State. There are several instances in the case study where financial law applies. First, the Northpic bank limited is in the record for providing financing facilities to the Q companies for a number of years in the form of loans. Loan agreements, debentures and letters of credit signed between the two organizations involves documentation, which is a part of financial law (Bamford 2011, P.4). A financial lawyer offers advice to the two companies on local law issues, and from other professional stakeholders. Financial law manifests through the legal grounds of credit set by the signing of the corporate treasury agreement document between Tco and the Q group of companies. A financial lawyer witnesses the signing of the agreement. He or she ensures the execution of the terms in the agreement throughout the contract span of duration. Financial law articulates for honoring and keeping of the agreements through a legal perspective (Ryder, Griffiths, & Singh 2012, p. 344). It is a type of fiscal security to the parties involved. Another instance where finance law is evident from the case study is the Risk transfer process where Northpic transfers risks to the Southpoc. A financial lawyer oversees the signing of the Risk transfer document and files a copy binding the two institutions together. Southpoc deciding that it wants some security and requires Tco to pledge a deposit maintained by Eastpac, another bank requires application of financial laws. Security law is a subsection of the financial law and ensures that the organizations involved in a given financial