8 H Basic Banking Guide A to Z
H
HBL
HBL was the first commercial bank to be established in Pakistan in 1947 founded by Habib group. In 1973 it was nationalized with other banks of the country. The Government of Pakistan privatized HBL in 2004. HBLs majority shares are owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public.
Half yearly closing
At the end of second quarter i.e. on 30th June, banks close their books for calculation f profit, preparation of returns for SBP and Taxation authorities
Hard currency
Money that is backed by gold reserves and is readily convertible into foreign currencies. These are the currencies, usually from a highly industrialized country, that is widely accepted around the world The U.S. Dollar and the British Pound are good examples of a hard currency.
Head office
Office that execute controls and coordination functions of the bank
Health certificate
Certificate issued by the health and sanitation authorities of an airport or seaport to the captain of a visiting vessel (aircraft or ship). A clean certifies that, no contagious disease was known to exist at the air/sea port when the certificate was issued, the vessel is free from all such diseases and, thus safe for carrying people and/or edible cargo.
Hedging
This is a strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or shares/securities
Heir
Who by law succeed other, a person who inherits property of a deceased person, as by relationship, will, or legal process.
Heir ship certificate
A Heirship Certificate is issued by a Tahsildar/ Asst. commissioner or a magistrate. This certificate is useful for, very limited purposes, such as mutation of revenue records and release of very limited amount from the banks Heirship Certificate can be used only where there is no dispute regarding the persons entitled to succeed to the estate of a deceased person, wherever there is a dispute, a Succession Certificate shall be required.
Hire purchase
This is a system of payment for goods in regular installments while using it. This is very common in Islamic mode o financing
Hire purchase agreement
This , is a contract, of sale of goods, on credit in regular installments while purchaser using it. The duration of the contract can be for considerably for longer time. Under the agreement the seller may be able to recover the goods at any time on non-payment of number of installments mentioned in the contract.
Holder
The �Holder� of a promissory note bill of exchange or a cheque means the payee or the endorsee that is in possession of it or a bearer of the instrument. If an instrument is lost and not found again, or is destroyed, the person in possession of it, at the time of loss or destruction shall be treated to continue to be its holder.
Holder for value
A holder to whom a negotiable instrument is issued or transferred in exchange for something of value. If bank is holder for value, it can not claim protection available to the collecting banker under section 131 of the Negotiable instrument Act 1881.
Holder in due course
Holder in due course means the claimer of a cheque / negotiable instrument, who has lawful title free from any defect. Title shall be treated as defective, if possession of the instrument / cheque has been taken by means of any offence, fraud or any unlawful consideration.
The conditions of holder in due course are:-
The holder has taken the instrument before it became overdue, without notice that it was previously dishonored, Instrument was taken in good faith against value, without knowledge that the person who has given the instrument (Negotiated) was having a defective title.Negotiable instruments Act 1881 section (9) defines holder in due course
as under:
�Holder in due course� means any person who for consideration becomes the possessor of a promissory note, bill of exchange or a cheque, if payable to bearer, or payee or endorsee thereof if payable to order, before it became overdue, without notice that the title of the person from whom he derived, his own title was defective.
Holding company
Holding company is that which controls other companies through stock ownership but that usually does not involve directly in their operations. Since it holds controlling shares, it can effect into management and policy making of the other company.
Honorarium
A payment given to a person for rendering services for which fees or salary is not traditionally paid.
Hot card
Bank card that cannot be honored for payment, due to the card has been reported lost or stolen, or has been cancelled by the issuer. Hot cards are listed in the combined Visa and MasterCard hot cards list
Hot money
It is the money that is moved quickly from one form of investment to another by its owner/investor, just to take advantage of exchange rates or gain high short-term returns on investment.
House bill of lading
Bill of lading issued by a freight forwarder as a receipt for the goods being shipped with other cargo as one consignment. It is not a complete document of title, a forwarders B/L has a legal standing similar to that of a normal B/L. If not specifically prohibited under the terms of the L/C, it is capable of being negotiated and of acceptance by the importers bank for payment under a letter of credit
Hypothecation
It is a kind of security where lender only possesses equitable charge on the goods. It is a kind of security arrangement in which neither the possession nor the title but only the right to sell an asset passes on to the banker or lender. to