Financial Law in a Variety of States - Essay Example

The law limits only to those financial relationships that are organizational based on contracts regulated by civil law. For instance, the law covers issues of the organization of banking and the system of accounts but does not apply to the relationships between the banking institutions and recipients, 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 budget laws, foreign exchange legislation, and the legal grounds of credit in institutions, companies, or the State.

Q1
There are several instances in the case study where financial law applies. First, Northpic bank limited is on record for providing financing facilities to the Q companies for several years in the form of loans. Loan agreements, debentures and letters of credit signed between the two organizations involve 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 duration. Financial law articulates honoring and keeping the agreements through a legal perspective (Ryder, Griffiths, & Singh 2012, p. 344). It is a type of financial security for the parties involved.
Another instance where finance law is evident from the case study is the Risk transfer process where Northpic transfers risks to Southport. A financial lawyer oversees the signing of the Risk transfer document and files a copy binding the two institutions together. Southpoc decides that it wants some security and requires Tco to pledge a deposit maintained by Eastpac, another bank requires the application of financial laws. Security law is a subsection of financial law and ensures that the organizations involved in a given financial relationship operate in trust. Financial law serves to give an assurance of financial security to the stakeholders under an act, legally (Wood & Wood 2007, p.10).

Q2
The arrangements involving the financial law in the case study are very effective legally. Documentation of an agreement is usable in the courts of law to compel a party to honor the agreement. That makes it highly effective in assuring the clients involved of their financial security. For instance, the signing of the corporate treasury agreement between the Tco Company and Q groups of companies. Read More