The bank contract is a document that specifies the details of an operation or relationship established between a financial entity and one of its clients. This can be a natural or legal person.
In these contracts, the rights and obligations of the parties are recorded. In that sense, deadlines for payments, interest rate , applicable fees, among other transaction conditions are set.
Main characteristics of the bank contract
The main features of the bank contract are the following:
- It is a document that has the force of law among the contracting parties.
- These are agreements that govern all the bank’soperations within its financial intermediation activity. That is, they are used when extending credits or receiving deposits. However, it is not a bank contract, for example, the one that signs the financial institution with the company that provides cleaning services.
- They are not exclusive documents from banks, but also the issue of the microfinance institutions system as savings banksand cooperative
- They are adhesion contracts, that is, they are distinguished by following pre-established formats by the bank. Thus, the user has little room for negotiation and normally must accept the conditions imposed by his counterpart.
- In view of the advantageous position of the financial institution, the authorities develop consumer protection and transparency rules. Thus, it is obliged that bank contracts meet certain standards.
- They are agreements of an onerous and commercial nature because they are born from a commercial relationship, linked in this case to the provision of a financial service.
- They are bilateral documents, between the financial institution and its client.
- The contract can establish a temporary link, as in the case of a loan. However, there are agreements of indeterminate duration, such as the opening of a savings account .
Types of bank contracts
The types of bank contracts can be the following:
- Active operations:These are documents that regulate transactions where the bank is a creditor . We refer, for example, to a consumer loan , a mortgage , a corporate credit , among others.
- Passive operations:These are contracts through which the institution captures resources. They must be signed, for example, by those who open a savings account or a fixed-term deposit . In this case, the bank assumes the role of borrower before the client.
- Neutral transactions:When the bank does not obtain or provide financing to its counterpart. This happens, for example, in the custody of securities. Through this service, the bank notifies the investor about the decisions of its broker . Thus, the user will know where their money was placed in the stock market. Likewise, the collection of dividends is guaranteed , adding that income to the contractor’s bank account.