Part F Cross-Border Issues, 45 Execution Proceedings and Foreign Deposits

Subject(s):

Regulation of banks — Bank of England

The banker–customer relationship is governed by the law of the country in which the account-holding branch is located. Thus, it follows that action taken by a foreign court or government cannot have an impact on either the ownership of, or the contractual terms applicable to, a deposit placed with a bank branch situated in England. This chapter examines the extent to which the English courts have attempted to make orders which may have an extra-territorial effect, in the sense that they seek to affect the rights and obligations of banks with respect to deposits placed with branches outside the jurisdiction. It considers third party debt orders; the attitude of the English courts in extra-territorial cases; the case law; and special cases.