Administrator: The Administrator is appointed by the court in those cases where the deceased has not given the name of executor in his will or a person named as executor has died or refuse to act. He disposes of the assets and makes payments of the liabilities of the deceased as per the directions given in the will or in its absence in the “Letter of Administration” issued by the court appointing him as administrator and empowering him to administer the estate of the deceased.

 

Executors or Administrators cannot normally delegate their powers to third parties. Any power of attorney or authority if given to a third party must be scrutinized and legal advise must be obtained. If an administrator or executor misapplies money belonging to the deceased with the Bank’s knowledge, the bank will be held responsible.  It may, as a matter of caution, be stated that borrowings by administrator, executor should not be considered as routine advances and ordinarily entertained. 02.07.2009 reviewed.

 

1. What do you mean by Agents and Attorneys?

  Ans. An Agent is a person employed to do any act for another or to represent another in dealings with a third person. An agent must be a major and of sound mind, so as to be responsible to his principal. The person from whom such act is done or who is so represented, is called principal.   When a person(Agent) borrows on behalf of another(Principal), the bank will insist on a regularly executed power of attorney or a proper authority in the agents favor. The power may be general or special.

1. What is a Mercantile Agent?

Ans. A Mercantile agent means an agent who, in the customary course of his business as such agent, has authority to sell goods, or to consign goods for the purpose of sale, or to buy goods or to raise money on the security of goods. A broker, a factor or an auctioneer having such an authority may be covered by the definition of a mercantile agent.