13a. The Bank reserves the right to suspend or terminate the operation of any account at any time without giving any notice and reason where the Bank

Transcription

1 Account Rules I. General (applicable to all accounts) 1. In connection with the opening, operation and closing of an account, the customer shall complete, sign and be bound by the terms of such documents as the Bank may require and shall provide the Bank with such other documents as the Bank may require. 2. The Bank shall be entitled to prescribe: i. minimum and maximum amounts or balances in respect of the opening, operation and closing of accounts; ii. any kind of interest payment whether positive or negative interest, the amount or balance threshold for any account or deposit that renders interest payable by the Bank or the customer, and the interest payment terms; iii. charges and commissions payable in respect of the operation of accounts (including, without limitation, any account carrying an unclaimed balance which has been transferred to the Bank's unclaimed balance account pursuant to Rule 14); and iv. the available periods in the case of term deposit accounts. 3. All inward remittances, cheques and other monetary instruments accepted for deposit into an account are credited subject to final payment and the Bank is entitled not to make the proceeds available until they have been cleared. The Bank reserves the right to charge the account with items which are subsequently returned unpaid and remittance amounts which are not eventually received. 4. The Bank shall be entitled to pay or reject a cheque which would cause a current account to be overdrawn and, if the Bank permits an overdraft, the amount overdrawn shall be payable on demand with interest. 5a. Withdrawals from any account other than a HKD or USD Current Account may not be made by cheque or other financial instrument but only by instructions given in such form as the Bank may prescribe. b. In connection with any banking transactions denominated in United States dollars cleared or settled through the US Dollar Clearing System established in Hong Kong Special Administrative Region, the customer: I. acknowledges that the operation of the US Dollar Clearing System will be subject to the US Dollar Clearing House Rules (including without limitation the USD Operating Procedures referred to therein); II. agrees that the Hong Kong Monetary Authority shall not owe any duty or incur any liability to the Customer or any other person in respect of any claim, loss, damage or expense (including without limitation, loss of business, loss of business opportunity, loss of profit, special, indirect or consequential loss) even if the Hong Kong Monetary Authority knew or ought reasonably to have known of their possible existence) of any kind or nature whatsoever arising in whatever manner directly or indirectly from or as a result of: i. anything done or omitted to be done by the Hong Kong Monetary Authority bona fide or by the settlement institution of the US Dollar Clearing System. Hong Kong Interbank Clearing Limited or any member of the US Dollar Clearing House in the management, operation or use (including without limitation, the termination and/or suspension of the settlement institution, the US Dollar Clearing facilities or any such member) of the US Dollar Clearing House or the US Dollar clearing facilities or any part of any of them; ii. without prejudice to (i) above, the giving of any notice, advice or approval in relation or pursuant to the US Dollar Clearing House Rules (including without limitation the US Dollar Operating Procedures referred to therein). c. The customer agrees that: I. cheques drawn by the customer which have been paid may, after having been recorded in electronic form, be retained by the collecting bank or Hong Kong Interbank Clearing Limited ( HKICL ) for such period as is stated in the rules relating to the operation of the Clearing House and after this, they may be destroyed by the collecting bank or HKICL as the case may be; and II. the Bank is authorised to contract inter alia with collecting banks and HKICL in accordance with the terms in paragraph (I). 6. Alterations to financial instruments presented to the Bank will not be accepted unless they are authenticated by the signature of the drawer. 7a. Cheques presented (whether by the customer or by someone other than the customer) shall be paid at any branch unless otherwise specified by the Bank. b. Withdrawals of cash from United States Dollar Current Account are subject to seven days prior notice and availability of the currency in question. 8a. An inward remittance (whether in Hong Kong dollars or in any other currencies) to an account may not be credited to the account on the same day if the related payment advice is not received by the Bank before the relevant cutoff times specified by the Bank from time to time. No interest will accrue on any inward remittance before the funds are actually credited into the account. b. Unless the Bank specifies otherwise, interest (whether positive or negative interest) shall accrue from day to day at such rates as the Bank may from time to time determine. Interest accrued (rounded upward or downward to the nearest 5 cents as the Bank may decide) shall be credited or debited to the account at such intervals as the Bank may decide or as may be agreed with the customer. The last day shall be excluded in calculating interest accrued on closing an account. 9. The Bank shall be entitled to prescribe the foreign currencies in which an account may be denominated and the method of payment in respect of a foreign currency account. The Bank shall be entitled to effect payment in a currency other than that in which the account is denominated and, if it does so, the exchange rate shall be the rate determined by the Bank to be prevailing at the relevant time. 10. Any request for cancellation or reversal of payment instructions shall be at the entire discretion of the Bank and subject to such conditions as the Bank may prescribe. 11. Where a passbook is issued for an account, the passbook must, except where the Bank agrees otherwise, be presented for all withdrawals from the account. The passbook is for the customer s reference and does not necessarily indicate the most uptodate balance of the account as deposits may have been made or items charged without entry in the passbook. The customer should from time to time present the passbook to the Bank or use the selfservice Passbook Update Machine provided by the Bank to update the interest and unposted items onto the passbook. When the number of the unposted items reaches a certain volume as determined by the Bank from time to time, all the unposted items will be consolidated as one entry and the individual items will not be updated on the passbook. A copy of the consolidation statement listing each individual item within a certain period can be produced and provided to the customer upon request in writing and will be subject to the Bank s handling charge. 12. Any payments made by the Bank to a person producing a withdrawal form purporting to be signed, sealed and/or chopped as authorised by the customer shall have the same effect as if made to the customer personally and will absolve the Bank from all liabilities to the customer or to any other party. BR64R22(YX) /18 E

2 13a. The Bank reserves the right to suspend or terminate the operation of any account at any time without giving any notice and reason where the Bank is required by any Applicable Regulations or otherwise has reasonable grounds for doing so. b. Without prejudice to the generality of the above provision, the Bank shall be entitled to close any account immediately without notice to the customer if: i. there is any change of Applicable Regulations which prohibits or renders illegal the maintenance or operation of the account; ii. the customer shall commit any breach of or omit to observe any obligations under these Rules which, in the reasonable opinion iii. of the Bank, amounts to a material default on the part of the customer; or the Bank s books and records show a zero balance on any account for a period of six continuous months or for such shorter period as the Bank may reasonably prescribe. c. The suspension or termination of the operation of any account, and any withdrawal of cash or property, whether or not following such suspension or termination, shall be without prejudice to the right of the Bank to settle any transactions entered into, or to settle any liability incurred by the customer under these Rules or by the Bank on behalf of the customer, prior to such suspension or termination. Further, upon such suspension or termination, the Bank may cancel all or any unexecuted instructions at its discretion. d. Notwithstanding any provision herein to the contrary, the Bank reserves the right to terminate any account with prior notice (save under exceptional circumstance when termination may be made without notice) and with or without cause. e. For the purpose of this Clause, Applicable Regulation means any law, regulation or order, or any rule, direction, guideline, code, notice or restriction (whether or not having the force of law) issued by any regulatory authority, government agency, exchange or professional body applicable from time to time. 14. Any unclaimed balance on a closed account may be transferred to the Bank's unclaimed balance account. 15. The Bank may specify from time to time any additional means or medium (including the telephone, the Internet or other electronic means or medium) through which instructions may be delivered or transmitted to the Bank subject to such terms and conditions (including any risk disclosure statements) as the Bank may reasonably prescribe. All such instructions given, as understood and acted on by the Bank, shall be irrevocable and binding on the customer whether given by the customer or by any other person purporting to be the customer. The Bank shall be under no duty to verify the identity or authority of the person giving any such instruction or its authenticity. Where the account is in the name of more than one person, the Bank is authorised to act on the instructions of any of them delivered or transmitted to the Bank through any means or medium specified by the Bank from time to time. Such instructions and any terms and conditions reasonably prescribed by the Bank with respect to the relevant means or medium of delivery or transmission shall be binding on all the account holders in all respects notwithstanding that any of the account holders does not use such means or medium. 16. The Bank shall be entitled to act in accordance with its regular business practice and procedure and will only accept the customer's instructions in so far as it is (in the Bank's opinion) practicable and reasonable to do so. For the avoidance of doubt, the Bank is authorised to participate in and comply with the rules and regulations of any organization which regulates the conduct of banking business and any system which provides central clearing, settlement and similar facilities for banks. 17. Account statements shall be provided at monthly intervals unless: i. a passbook or other record of transaction is provided; ii. iii. 18a. b. there are no entries covering the period which is the subject of the statement; or otherwise agreed with the customer. If the Customer or a shareholder (whether direct or indirect, legal or beneficial) of the Customer is a company incorporated in a country that permits issuance of bearer shares, the Customer confirms and warrants that neither it nor such shareholder has issued any bearer shares and further undertakes that neither it nor such shareholder will issue or convert any of its shares or such shareholder s shares (as the case may be) to bearer form without the prior written consent of the Bank. The customer agrees to examine each advice, contract note, receipt, account statement including the consolidation statement, or securities account portfolio statement (the statement of account ) provided by the Bank to see if there are any errors, discrepancies, unauthorized debits or other transactions or entries arising from whatever cause, including, but without limitation, forgery, forged signature, fraud, lack of authority or negligence of the customer or any other person (the Errors ). The customer also agrees that the statement of account shall, as between the Bank and the customer, be conclusive evidence as to the balance shown therein and that the statement of account shall be binding upon the customer, who shall be deemed to have agreed to waive any rights to raise objections or pursue any remedies against the Bank in respect thereof unless the customer notifies the Bank in writing of any such Errors within 90 days after: i. personal delivery of such statement of account to the customer if it is personally delivered; or ii. iii. iv. v. vi. the Bank has posted such statement of account if it is sent by post; or the Bank has ed such statement of account if it is sent by ; or the Bank has placed such statement of account in the Hang Seng Personal ebanking of the customer available through the Internet if it is made available therein; or the Bank has placed such statement of account in the Hang Seng Business ebanking of the customer available through the Internet if it is made available therein; or the Bank has placed such statement of account in the Hang Seng HSBCnet of the customer available through the Internet if it is made available therein. 19. The customer shall not create any encumbrance over a credit balance in any account unless with the prior written consent of the Bank. 20. The Bank may, at any time and without prior notice, apply any credit balance in any currency on a customer's account, whether in the name of the customer or in the names of the customer and any other person(s), in or towards satisfaction of any indebtedness owed by the customer to the Bank in whatever capacity and whether actual or contingent or whether owed solely by the customer or owed by the customer and any other person(s). In the case of a joint account, the Bank may exercise the rights in this clause and apply any credit balance on such joint account in or towards satisfaction of any indebtedness owed to the Bank by one or more of the holders of such joint account. 21. The Bank is authorised to exercise a lien over all property of the customer which is in the possession or control of the Bank, for custody or any other reason and whether or not in the ordinary course of banking business, with power for the Bank to sell such property to satisfy any indebtedness of the customer to the Bank. 22. The Bank shall not be liable for any losses which may be incurred by a customer as a result of a transaction carried out by the Bank in accordance with the instructions of the customer nor, in any other case, unless due to the negligence or wilful default of the Bank, its officers or employees. BR64R22(YX) /18 E

3 23. The customer shall indemnify the Bank, its officers and employees against all liabilities and claims (including any expenses of reasonable amount and reasonably incurred) which they may incur as a result of a transaction carried out by the Bank on behalf of the customer unless due to the negligence or wilful default of the Bank, its officers or employees. 24. The Bank may revise these Rules and/or introduce additional Rules at any time and from time to time. Any revision and/or addition to these Rules, any items prescribed under these Rules and any other information shall become effective subject to the Bank giving notice according to regulatory requirements, and shall be binding on the customer if the customer continues to have an account with the Bank after the effective date thereof. The notice may be given by display, advertisement or other means as the Bank thinks fit. 25. The Bank may appoint any other person as its agent to collect any or all indebtedness owed by the customer to the Bank and the customer shall be responsible for all costs and expenses of reasonable amount and reasonably incurred by the Bank for that purpose on each occasion. 26. The Bank may (but shall not be obliged to), and the customer expressly authorises the Bank to, record by tape or other means all instructions and requests given by the customer verbally to the Bank and all other verbal communications between the customer and the Bank in connection with any account and/or any services made available by the Bank from time to time including, without limitation, those given or communicated by telephone (collectively, Verbal Communications ). The customer expressly agrees that if a dispute arises at any time in relation to the contents of any Verbal Communications, then the tape recording or such other records of such Verbal Communications, or a transcript of the same certified as a true transcript by an officer of the Bank, shall be conclusive evidence between the Bank and the customer as to the contents and nature of such Verbal Communications unless and until the contrary is established and may be used as evidence in such dispute. The Bank reserves the right to refuse to act upon any Verbal Communications if, in its opinion, there are reasonable grounds for doing so. Furthermore, the Bank reserves the right to defer acting on any Verbal Communications and to require further information with respect to such Verbal Communications as the Bank may consider appropriate. 27. All communications sent by post to the last address of the customer registered by the Bank will be deemed to have been delivered to the customer 48 hours after posting if the address is in Hong Kong and 7 days after posting if the address is outside Hong Kong. Items sent to the customer or delivered to an authorised representative are supplied at the customer's risk. 28. Any specific terms agreed between the Bank and the customer in respect of any transaction shall prevail if they are inconsistent with these Rules. 29. Collection and Disclosure of Customer Information a. Definitions Terms used in this Clause 29 shall have the meanings set out in these Rules or the meanings set out below. Where there is any conflict between the meaning of a term set out in these Rules and the meaning set out below, the meaning set out below shall apply in this Clause 29. Authorities includes any local or foreign judicial, administrative, public or regulatory body, any government, any Tax Authority, securities or futures exchange, court, central bank or law enforcement body, selfregulatory or industry bodies or associations of financial service providers or any of their agents with jurisdiction over any part of the HSBC Group. Compliance Obligations means obligations of the HSBC Group to comply with (a) any Laws or international guidance and internal policies or procedures, (b) any demand from Authorities or reporting, disclosure or other obligations under Laws, and (c) Laws requiring the HSBC Group to verify the identity of its customers. Connected Person means a person or entity (other than the customer) whose information (including Personal Data or Tax Information) is provided by the customer, or on the customer s behalf, to any member of the HSBC Group or which is otherwise received by any member of the HSBC Group in connection with the provision of the Services. A Connected Person may include, but is not limited to, any guarantor or third party security provider, a member, a director or officer of a company, partners or members of a partnership, any substantial owner, controlling person, or investor of a fund, beneficial owner, trustee, settlor or protector of a trust, account holder of a designated account, payee of a designated payment, a representative of the customer, agent or nominee, or any other persons or entities with whom the customer has a relationship that is relevant to the customer s relationship with the HSBC Group. controlling persons means individuals who exercise control over an entity. For a trust, these are the settlor, the trustees, the protector, the beneficiaries or class of beneficiaries, and anybody else who exercises ultimate effective control over the trust, and for entities other than a trust, these are persons in equivalent or similar positions of control. Customer Information means all or any of the following items relating to the customer or a Connected Person, where applicable: (i) Personal Data, (ii) information about the customer, the customer s accounts, transactions, use of the Bank s products and services and the customer s relationship with the HSBC Group and (iii) Tax Information. Financial Crime means money laundering, terrorist financing, bribery, corruption, tax evasion, fraud, evasion of economic or trade sanctions, or violations, or any acts or attempts to circumvent or violate any Laws relating to these matters. Financial Crime Risk Management Activity means any action to meet Compliance Obligations relating to or in connection with the detection, investigation and prevention of Financial Crime that the Bank or members of the HSBC Group may take. HSBC Group means HSBC Holdings plc, its affiliates, subsidiaries, associated entities and any of their branches and offices (together or individually), and member of the HSBC Group has the same meaning. Laws include any local or foreign law, regulation, judgment or court order, voluntary code, sanctions regime, agreement between any member of the HSBC Group and an Authority, or agreement or treaty between Authorities and applicable to the Bank or a member of the HSBC Group. Personal Data means any information relating to an individual from which such individual can be identified. Services includes (a) the opening, maintaining and closing of the customer s accounts, (b) the provision of credit facilities and other banking, financial and insurance products and services, processing applications, credit and eligibility assessment, and (c) maintaining the Bank s overall relationship with the customer, including marketing services or products to the customer, market research, insurance, audit and administrative purposes. substantial owners means any individuals entitled to more than 10% of the profits of or with an interest of more than 10% in an entity, directly or indirectly. Tax Authorities means Hong Kong or foreign tax, revenue or monetary authorities. Tax Certification Forms means any forms or other documentation as may be issued or required by a Tax Authority or by the Bank from time to time to confirm the customer s tax status or the tax status of a Connected Person. BR64R22(YX) /18 E

4 "Tax Information" means documentation or information about the customer s tax status or the tax status of any owner, controlling person, substantial owner or beneficial owner or Connected Person. Tax Information includes, but is not limited to, information about: tax residence and/or place of organisation (as applicable), tax domicile, tax identification number, Tax Certification Forms, certain Personal Data (including name(s), residential address(es), age, date of birth, place of birth, nationality, citizenship). Reference to the singular includes the plural (and vice versa). b. Collection, Use and Sharing of Customer Information This Clause 29(b) explains how the Bank will use information about the customer and Connected Persons. The Notice to Customers and Other Individuals relating to the Personal Data (Privacy) Ordinance that applies to the customer and other individuals (the PICS ) also contains important information about how the Bank and the HSBC Group will use such information and the customer should read this Clause in conjunction with the PICS. The Bank and members of the HSBC Group may use Customer Information in accordance with this Clause 29 and the PICS. Customer Information will not be disclosed to anyone (including other members of the HSBC Group), other than where: the Bank is legally required to disclose; the Bank has a public duty to disclose; the Bank s legitimate business purposes require disclosure; the disclosure is made with the data subject s consent; it is disclosed as set out in this Clause 29 or the PICS. Collection i. The Bank and other members of the HSBC Group may collect, use and share Customer Information. Customer Information may be requested by the Bank or on behalf of the Bank or the HSBC Group, and may be collected from the customer or Connected Person directly, from a person acting on behalf of the customer or Connected Person, from other sources (including from publicly available information), and it may be generated or combined with other information available to the Bank or any member of the HSBC Group. Use ii. Sharing iii. The Bank and members of the HSBC Group may use, transfer and disclose Customer Information in connection with (1) the purposes set out in Appendix 1 (applicable to Customer Information other than Personal Data) (2) the purposes set out in the PICS (applicable to Personal Data) and (3) matching against any data held by the Bank or the HSBC Group for whatever purpose (whether or not with a view to taking any adverse action against the customer) ((1) to (3) are collectively referred to as the Purposes ). The Bank may (as necessary and appropriate for the Purposes) transfer and disclose any Customer Information to the recipients set out in the PICS (who may also use, transfer and disclose such information for the Purposes) and Appendix 1 (applicable to Customer Information other than Personal Data). The Customer's Obligations iv. The customer agrees to supply Customer Information, and to inform the Bank promptly and in any event, within 30 days in writing if there are any changes to Customer Information supplied to the Bank or a member of the HSBC Group from time to time, and to respond promptly to any request for Customer Information from the Bank or a member of the HSBC Group. In respect of a nonpersonal customer, the customer further undertakes to notify the Bank (in such manner as may be prescribed or accepted by the Bank from time to time) of any change of directors, shareholders, partners, controllers, legal status or constitutional documents. v. The customer confirms that every Connected Person whose information (including Personal Data or Tax Information) has been (or will be) provided to the Bank or a member of the HSBC Group has (or will at the relevant time have) been notified of and agreed to the processing, disclosure and transfer of their information as set out in this Clause 29, Appendix 1 and the PICS (as may be amended or supplemented by the Bank from time to time). The customer shall advise any such Connected Persons that they have rights of access to, and correction of, their Personal Data. vi. vii. The customer consents and shall take such steps as are required from time to time for the purposes of any applicable data protection law or secrecy law to permit the Bank to use, store, disclose, process and transfer all of Customer Information in the manner described in these Rules. The customer agrees to inform the Bank promptly in writing if the customer is not able or has failed to comply with the obligations set out in Clauses 29(b)(v) and 29(b)(vi) in any respect. Where the customer or any Connected Person fails to provide promptly Customer Information reasonably requested by the Bank, or the customer or any Connected Person withholds or withdraws any consents that the Bank may need to process, transfer or disclose Customer Information for the Purposes (except for purposes connected with marketing or promoting products and services to the customer), or the Bank has, or a member of the HSBC Group has, suspicions regarding Financial Crime or an associated risk, the Bank may: A. be unable to provide new, or continue to provide all or part of the Services to the customer and reserve the right to terminate the Bank s relationship with the customer; B. take actions necessary for the Bank or a member of the HSBC Group to meet the Compliance Obligations; and C. block, transfer or close the customer s account(s) where permitted under local Laws. In addition, if the customer fails to supply promptly the customer s, or a Connected Person s, Tax Information and accompanying statements, waivers and consents, as may be requested, then the Bank may make its own judgment with respect to the status of the customer or the Connected Person, including whether the customer or a Connected Person is reportable to a Tax Authority, and may require the Bank or other persons to withhold amounts as may be legally required by any Tax Authority and paying such amounts to the appropriate Tax Authority. c. Financial Crime Risk Management Activity i. Financial Crime Risk Management Activity may include, but is not limited to: (A) screening, intercepting and investigating any instruction, communication, drawdown request, application for Services, or any payment sent to or by the customer, or on the customer s behalf; (B) investigating the source of or intended recipient of funds; (C) combining Customer Information with other related information in the possession of the HSBC Group; and (D) making further enquiries as to the status of a person or entity, whether they are subject to a sanctions regime, or confirming the identity and the status of the customer or a Connected Person. BR64R22(YX) /18 E

5 ii. The Bank and HSBC Group s Financial Crime Risk Management Activity may lead to the delay, blocking or refusing the making or clearing of any payment, the processing of the customer s instructions or application for Services or the provision of all or part of the Services. To the extent permissible by law, neither the Bank nor any member of the HSBC Group shall be liable to the customer or any third party in respect of any loss (howsoever it arose) that was suffered or incurred by the customer or a third party, caused in whole or in part in connection with the undertaking of Financial Crime Risk Management Activity. d. Tax Compliance The customer, and each Connected Person acting in their capacity as a Connected Person (and not in their personal capacity), acknowledge that the customer is solely responsible for understanding and complying with the customer s tax obligations (including but not limited to, tax payment or filing of returns or other required documentation relating to the payment of all relevant taxes) in all jurisdictions in which those obligations arise and relating to the opening and use of account(s) or Services provided by the Bank or members of the HSBC Group. Each Connected Person acting in his/its capacity as a Connected Person (and not in his/its personal capacity) also makes the same acknowledgement in his/its own regard. Certain countries may have tax legislation with extraterritorial effect regardless of the customer s or a Connected Person s place of domicile, residence, citizenship or incorporation. Neither the Bank nor any member of the HSBC Group provides tax advice. The customer is advised to seek independent legal and tax advice. Neither the Bank nor any member of the HSBC Group has responsibility in respect of the customer s tax obligations in any jurisdiction which they may arise including any that may relate specifically to the opening and use of account(s) and Services provided by the Bank or members of the HSBC Group. e. Miscellaneous i. In the event of any conflict or inconsistency between any of this Clause 29 and the provisions in or governing any other service, ii. product, business relationship, account or agreement between the customer and the Bank, this Clause 29 shall prevail. If all or any part of the provisions of this Clause 29 become illegal, invalid or unenforceable in any respect under the law of any jurisdiction, that shall not affect or impair the legality, validity or enforceability of such provision in any other jurisdictions or the remainder of this Clause 29 in that jurisdiction. f. Survival Upon Termination This Clause 29 shall continue to apply notwithstanding any termination by the customer or the Bank or a member of the HSBC Group of the provision of any Services to the customer, or the closure of any of the customer s account. 30. Unless otherwise specified, customer in these Rules means the person or each person (whether an individual, a corporation, sole proprietorship, partnership, statutory body or authority, other body of persons or form of association) and in whose name an account is opened, and in the case of a sole proprietorship, means the sole proprietor and, in the case of a partnership, means each of the present and future partners of the partnership; and includes, in the case of a corporation, its lawful successor and, in the case of an individual, a sole proprietorship or partnership, any personal representative and lawful successor of such individual, the proprietor or each partner; and, in all cases where the context permits, includes any authorised person or signatory or representative of the customer. The obligations under these Rules bind the customer and the customer s respective successors, permitted assigns and personal representatives as applicable. The customer may not assign or transfer any of the customer s rights or obligations under these Rules without the Bank s prior written consent. 31. The Bank shall be entitled, without having to make prior disclosure to the customer, to accept and retain for its own account and benefit absolutely any profit, rebate, brokerage, commission, fee, benefit, discount and/or other advantage arising out of or in connection with the provision of services to the customer These Rules, the account relationship between the Bank and the customer and the Bank's obligations to pay any amount standing to the credit of an account shall be governed by the laws of the Hong Kong Special Administrative Region. The operation of an account in a location outside the Hong Kong Special Administrative Region and payment in such a location shall be conditional on such operation and payment being lawful in that location. The Bank shall not be responsible for, or liable for any losses, taxes, costs and expenses as a result of complying with, any laws, regulations, governmental measures or restrictions which may be applicable in any location outside the Hong Kong Special Administrative Region to the operation of an account and/or payment thereunder and/or to the Bank's assets relating thereto. No person other than the customer and the Bank will have any right under the Contracts (Rights of Third Parties) Ordinance to enforce or enjoy the benefit of any of the provisions of these Rules. II. Phonebanking Service (applicable to customer who has registered or otherwise utilise the Bank s Phonebanking Service) 1. Definitions In this Clause, unless the context otherwise requires: Authorised Phonebanking Service User means the person who is authorised by the customer to operate the Primary Account and the Debit Accounts through telephone and shall include the customer. Personal Identification Number or PIN means any number, code, mark or credential (including personal identification number, password, or voice print or other biometric credential) that is used by the Bank for verifying the identity of an Authorised Phonebanking Service User for the purpose of providing the Phonebanking Service and handling related matters. Credit Account means any account (for the purpose of this definition, including but not limited to the Primary Account) maintained with the Bank for the time being designated for the purpose of receiving deposit of funds in relation to the Phonebanking Service. Debit Account means any account (for the purpose of this definition, including but not limited to the Primary Account) maintained with the Bank for the time being designated for the purpose of making withdrawal of funds in relation to the Phonebanking Service. Debit Accountholder means each customer of a Debit Account, including for the avoidance of doubt the customer. Primary Account shall mean the account under which the customer has registered the Phonebanking Service. 2. Service Scope The Bank shall from time to time determine or specify the scope and features of the Phonebanking Service and to modify, expand or reduce the same at any time and from time to time with or without notice. Where such notice shall, at the sole discretion of the Bank, be given, such notice may be made in such manner and by such means of communication as the Bank shall deem fit, including but without limitation to the use of direct mailing material, advertisement or branch display. 3. Limitations on Liability and Indemnity The Bank is authorised to act on the instructions of the customer and the Debit Accoutholder given by the Authorised Phonebanking Service User by telephone ( telephone instructions ). Each Authorised Phonebanking Service User and Debit Accountholder agrees that: BR64R22(YX) /18 E

6 a. the Bank is authorised to act on any telephone instructions which the Bank at its sole discretion believes emanated from the Authorised Phonebanking Service User by the use of the Personal Identification Number ( the PIN ) assigned to or designated by the Authorised Phonebanking Service User and any number(s) substituted by the Authorised Phonebanking Service User for that purpose and the Bank shall not be liable for acting in good faith from telephone instructions emanated from unauthorized individuals and the Bank shall not be under any duty to verify the identity of the person or persons giving telephone instructions purportedly in the name of the Authorised Phonebanking Service User; b. the Authorised Phonebanking Service User shall undertake to keep the PIN strictly confidential at all times and that shall include, without limitation, not disclosing the PIN to any third party under any circumstances or by any means whether voluntarily or otherwise and not to keep any written record of the PIN in any place or manner. The Authorised Phonebanking Service User shall report to the Bank immediately upon losing the PIN or realising it has fallen into the hands of any unauthorised party; c. the Authorised Phonebanking Service User and each related Debit Accountholder shall ensure that there are sufficient funds or prearranged credit facilities in the Debit Account(s) for the purpose of the telephone or other instructions and the Bank shall not be liable for any consequence arising out of the Bank s failure to carry out such instructions due to inadequacy of funds and/or credit facilities provided always that if the Bank shall at its sole discretion decide to carry out the instructions notwithstanding such inadequacy the Bank may do so without seeking prior approval from or notice to the Authorised Phonebanking Service User or the Debit Accountholder and the Authorised Phonebanking Service User and each Debit Accountholder shall be responsible for the resulting overdraft, advance or credit thereby created; d. any exchange rate or interest rate quoted by the Bank in response to a telephone instruction is for reference only and shall not be binding on the Bank unless confirmed by the Bank for the purpose of transaction. Such confirmed exchange rate or interest rate, if accepted by the Authorised Phonebanking Service User through Phonebanking Service, shall be absolutely binding on the Authorised Phonebanking Service User and the Debit Accountholder notwithstanding that a different exchange rate or interest rate might have been quoted by the Bank at the relevant time through other means of communication. e. the Bank shall not be liable to the Authorised Phonebanking Service User or any Debit Accountholder for any failure to carry out any telephone instructions which are attributable, wholly or in part, to any cause beyond the Bank s control including any equipment malfunction or failure and under no circumstances shall the Bank be responsible to the Authorised Phonebanking Service User or any Debit Accountholder for any indirect or consequential losses arising out of or in connection with the carrying out or otherwise of the Authorised Phonebanking Service User s telephone instructions; f. the Authorised Phonebanking Service User and each Debit Account holder shall keep the Bank indemnified at all times against, and to save the Bank harmless from all actions, proceedings and claims which may be brought by or against the Bank, and from all losses and damages which may be suffered or incurred by the Bank, and from all cost and expenses of reasonable amounts and reasonably incurred by the Bank, and which shall have arisen either directly or indirectly out of or in connection with the Bank accepting telephone instructions and acting or failing to act thereon unless due to the willful default of the Bank and such indemnity shall continue notwithstanding the termination of the Primary Account or any other relevant account(s); g. The Authorised Phonebanking Service User s right to give telephone instructions pursuant to the Terms and Conditions herein shall at all times be subject to the discretion of the Bank and that the Bank may at any time revoke such right without prior notice; h. all Authorised Phonebanking Service Users shall be entitled to use the Phonebanking Service singly irrespective of their signing authority under the Primary Account, the Debit Account(s) and the Credit Account(s); i. the customer shall notify the holder of the Credit Account(s) and the Debit Account(s) or such other account(s) not designated as Credit Account(s) but to which the Authorised Phonebanking Service User has transferred money using the Phonebanking Service of the details of the transactions performed pursuant to telephone instructions given by the Authorised Phonebanking Service User. The Bank shall not be responsible to the Authorised Phonebanking Service User or any other person for giving any such notice; j. if there is more than one Authorised Phonebanking Service User then under the provisions herein (i) the liabilities and obligations of each of them shall be joint and several, (ii) references to the Authorised Phonebanking Service User shall be construed, as the context requires, to any or each of them, (iii) each of them shall be bound even though any other Authorised Phonebanking Service User or any person intended to be bound hereby is not, and (iv) the Bank shall be entitled to deal separately with an Authorised Phonebanking Service User on any matter, including the discharge of any liability to any extent, without affecting the liability of any other Authorised Phonebanking Service User; and k. the Authorised Phonebanking Service User understands and acknowledges that telephone instructions may not necessarily be processed by the Bank immediately or on the same day of giving of such telephone instructions due to system constraint or the banking procedures of the Bank. The Authorised Phonebanking Service User agrees that the Bank shall not be held responsible to the Authorised Phonebanking Service User or any other person for effecting such telephone instructions at a later time and the Bank s decision as to when to effect the said telephone instructions shall be final and binding on the Authorised Phonebanking Service User. 4. a. The Bank may use the PIN to verify the identity of an Authorised Phonebanking Service User when he uses the Phonebanking Service, gives instructions for any transactions or matters relating to the Phonebanking Service, operates any accounts under the same customer name through the Phonebanking Service, or obtains information. A PIN may be designated by an Authorised Phonebanking Service User or the Bank, or generated from the voice or other biometric data registered by the Authorised Phonebanking Service User with the Bank from time to time. b. The customer shall complete and observe, and shall ensure that each of the other Authorised Phonebanking Service Users completes and observes, the steps and conditions specified by the Bank in order to generate or register his voice print or other biometric credential with the Bank and to use it as a PIN. III. Term (Time And Call) Deposits 1. Deposits are nontransferable and nonnegotiable. 2. Interest is calculated up to but excluding the maturity date. Interest is payable only on the maturity date but, in the case of deposits of 15 months or more, may be paid at agreed intervals. 3. Interest on time deposits is fixed for the entire deposit period. Interest on call deposits will be simple interest accruing from day to day at the call rate specified by the Bank on a daily basis. BR64R22(YX) /18 E

7 4. Where instructions for automatic renewals of a deposit are given, the interest rate applicable to the relevant type of deposit prevailing on the maturity date will be the rate for the renewal. In the absence of renewal instructions, the Bank may specify the rate at which interest on the deposit will be payable by the Bank or the customer after maturity of the deposit At the request of the depositor, the Bank may at its discretion allow a premature withdrawal of a deposit before the due date. In such an instance, the Bank reserves the right not to pay interest on the deposit. The Bank furthermore reserves the right to recover a handling charge and additional cost (if any) of obtaining funds in the market for the remaining period of deposit, and to recover the loss of the Bank if there is a lack of funds in the market. If a HKD deposit matures on a day on which the Bank is not open to the general public in Hong Kong for business, the deposit shall be payable on the next succeeding day on which the Bank is so open and interest shall be paid up to but excluding that day. 7. If a foreign currency deposit matures on a day on which banks in either the country of the relevant foreign currency or in Hong Kong are not open to the general public for business, the deposit shall be payable on the next succeeding day on which all such banks are so open and interest shall be paid up to but excluding that day. IV. Remittance Services (applicable to customer who has requested or otherwise utilized the Bank s remittance services) 1. The Bank shall not be liable for any loss or damage due to omission or delay in sending any message relating to this transfer or in payment or in giving advice of payment; loss of items or any message or signals in transit or transmission or otherwise, mutilation, error, omission, interruption or delay in transmission or delivery of any item, message, signals, letter, telegram or cable, or the actions of omission of our correspondents, subagent, other agency or any other party involved in The Clearing House Automated Transfer System (if applicable), or declared or undeclared war; censorship; blockade; insurrection; civil commotion; or any law, decree, regulation, control, restriction or other act of a domestic or of foreign government or other group or groups exercising governmental powers, whether de jure or de facto, or breakdown or malfunction in or of any computer, mechanical or electronic instruments, apparatus or device, or any act or event beyond the Bank s control. 2. The customer shall be solely responsible for the accuracy and completeness of all information provided and that the Bank shall not be responsible for checking or verifying the same and the Bank shall not be liable for any losses or damages caused by any inaccuracies, omissions or incompleteness of any information provided by the customer. 3. The Bank is at liberty to send any message in relation to this application in explicit language, code, cipher or any form of electronic transmission signals and the Bank is not to be liable for any losses caused by or any errors, neglects, or defaults of any correspondents, subagent, or other agency. 4. The customer shall have no right to cancel, amend or revoke this application or any terms thereof without the written consent of the Bank. 5. The Bank is entitled to reimbursement from the customer for the expenses incurred by the Bank, its correspondents and agents. Additional overseas charges (including charges levied by the beneficiary bank and/or correspondent banks) may be imposed by some overseas banks. These charges may be deducted from the remit amount depending on the practice of such banks and the beneficiary may as a result not be able to receive the remit amount in full, regardless of the payment instructions provided. 6. The Bank is entitled to receive and retain any benefit in whatever form from a party or parties through whom transaction(s) is/are effected in connection with this application. 7. The customer (and, where applicable, for and on behalf of each of the directors, authorized persons, officers, representatives and members (or partners in the case of a partnership) of the customer (collectively such individuals )) agrees and acknowledges that the customer's data, the personal data of such individuals and all other details and information relating to this application, this transfer and any transactions or dealings between the customer or such individuals with the Bank may be used, held or processed by the Bank or, where the Bank considers necessary or appropriate, disclosed, transferred (whether within or outside Hong Kong) or exchanged by the Bank to or with any members of the HSBC group, any third party service providers, any correspondent or agent banks or third party financial institutions, any payees or authorities for the purpose of or in connection with this application, this transfer or the provision of remittance services to the customer or for such purposes and to such persons in accordance with the Bank s policies on use and disclosure of personal data as set out in statements, circulars, notices or terms and conditions made available by the Bank to customers and other individuals from time to time. 8. The Bank reserves the right to determine effecting the transfer either by Clearing House Automated Transfer System (CHATS) (if the Beneficiary Bank is a registered Direct Participant of the local clearing in HKSAR) or by telegraphic transfer. 9. For all remittances of euro to European Union (EU) and European Economic Area (EEA), the customer must provide the beneficiary bank s SWIFT code (BIC) AND the beneficiary s account number in International Bank Account Number (IBAN) format. If this information is not given or is invalid or incorrect, the telegraphic transfer is liable to be rejected, returned and/or delayed, usually with charges imposed. The Bank accepts no responsibility for any loss or damage suffered by any person arising out of such rejection, return and/or delay. 10. If the remittance is in Renminbi or within the ambit of any of the Bank s agreement with the clearing bank or domestic agent bank in relation to any Renminbi services, the customer represents, warrants, undertakes and/or agrees that: a) the remittance fully complies with any law, regulation or order, or any rule, direction, guideline, code, notice, restriction or the likes (whether or not having the force of law) issued by any regulatory authority, government agency, clearing or settlement bank or body exchange or professional body in whatever part of the world (including, without limitation, HKSAR and the People s Republic of China) applicable from time to time (collectively the "Applicable Regulations")(including without limitation any requirements relating to the purposes and eligibility of such remittance); b) notwithstanding any other clauses stated in these terms and conditions for remittance services or otherwise, (i) the Bank reserves the right to introduce additional terms and conditions applicable to remittance services in order to comply with any Applicable Regulations without prior notice (except as may be otherwise required in the Applicable Regulations) and without giving any reasons; and (ii) the Bank shall have the right to refuse or at any time decline any remittance or revert any remittance of any sum that has been effected from the account stated in this application from which the remit amount is debited without prior notice (except as may be otherwise required in the Applicable Regulations) and without giving any reasons; c) it shall provide the Bank with any documents as the Bank may require; and BR64R22(YX) /18 E