I have given an LOA to someone in India , who mis utilized to transfer money by a request letter from one a/c to another a/c.
Contents of Letter wrote to Bank:
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To
Bank ABC, City, State.
Sub: transfer of funds.
I, "MY NAME" not having check book with me and my A/C no : 12345.
so please transfer 1Lakh ( One Lakh) to Mr. XYZ A/C no : 34556.
Thank you.
Signature of LOA
(LOA Holder)
Kinds Regards,
Signature of LOA
( Name of LOA)
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As per the LOA agreement document with Bank, the below lines were stated regarding the Debit Transactions.
" I /We hereby agree that all debits made by the bank in my/our account by honouring cheques/negotiable instruments/ debit slips signed by the said ... "LOA NAME"..... are conclusive and bining on me/us. "
Above in the letter "MY NAME" represent my original name, and also the word "bining" is not a typo from me, but it was the actual word.
When the letter say's " I, MY NAME " can bank accepts this below letter to process the transaction. ?
1) Can the LOA holder sign the letter when the contents says " I MY NAME". , as I have not written the letter OR signed.
2) Will this letter falls as a negotiable instrument / Bill Of Exchange category to process the transaction.
3) If LOA Holder signs this letter, can a bank accept this letter to perform a transaction.
Thank you for any help or inputs.
Raj
