554 (4/18) TERMS AND CONDITIONS FOR ACCOUNTS AND RELATED SERVICES (FOR INDIVIDUALS) The terms and conditions set out below and in the Schedules (the T

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2 554 (4/18) TERMS AND CONDITIONS FOR ACCOUNTS AND RELATED SERVICES (FOR INDIVIDUALS) The terms and conditions set out below and in the Schedules (the Terms and Conditions ) apply to all accounts and services provided by China Construction Bank (Asia) Corporation Limited (the Bank, which includes all the Branches and offices of China Construction Bank (Asia) Corporation Limited wherever situated, its successors and assigns) to each of its individual customers (the Customer ). By using or continuing to use such accounts or services after receiving these Terms and Conditions, the Customer shall be deemed to have agreed to be bound by these Terms and Conditions. 1. GENERAL PROVISIONS FOR ALL ACCOUNTS 1.1 Definitions Business Day means a day on which the Bank is open for banking business in Hong Kong but excluding Saturday afternoon. FATCA means: (a) sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986 (as amended) or any amended or successor version thereof; (b) any intergovernmental agreement, memorandum of understanding, undertaking and other arrangement between governments and regulators in connection with (a) including as entered into by the government of Hong Kong; (c) agreements between the Bank and the IRS or other regulator or government agency pursuant to or in connection with (a); and (d) any laws, rules, regulations, interpretations or practices adopted in the U.S., Hong Kong or elsewhere pursuant to any of the foregoing. Foreign Law Requirement means any obligation imposed on the Bank pursuant to any future or present: (a) foreign laws (including foreign laws in respect of which the Bank considers itself bound and including laws and regulations of Mainland China); (b) Hong Kong laws that implement Hong Kong s obligations under an agreement with a foreign government (including the government of Mainland China) or regulator; (c) agreements entered into between the Bank and a foreign government (including the government of Mainland China) or regulator; or (d) guidelines or guidance issued by any legal, regulatory, government, tax or law enforcement body within or outside of Hong Kong in respect of (a) to (c). For the avoidance of doubt, this definition includes any obligation or requirement applying to the Bank as amended or introduced from time to time, including pursuant to FATCA. Government Authority means any government, government body, government agency or regulator, in or outside of Hong Kong, including the Inland Revenue Department of Hong Kong and the IRS. Hong Kong means the Hong Kong Special Administrative Region of the People s Republic of China. IRS means the U.S. Internal Revenue Services. Mainland China means the territory of the People s Republic of China excluding Hong Kong and Macau Special Administrative 1

3 Regions and Taiwan Province of the People s Republic of China. Renminbi means the lawful currency for the time being of Mainland China. Renminbi Banking Services means any Renminbi-related banking services provided by the Bank to its Customer including Renminbi account opening, Renminbi deposit-taking, Renminbi remittance, Renminbi conversion and such other services that the Bank may from time to time offered to its Customer. RMB wealth management products means the Renminbidenominated marketable wealth management products issued in accordance with the regulations in Hong Kong. U.S. means the United States of America. 1.2 Interpretation Unless the context otherwise requires: (a) words importing the singular include the plural and vice versa and words importing a gender include every gender; (b) clause headings are inserted for convenience of reference only and shall be ignored in the interpretation of these Terms and Conditions; (c) whenever the word including is used, it is deemed to be followed by the words without limitation ; (d) a Clause or Schedule is a reference to a clause of or schedule to these Terms and Conditions; and (e) a person, where applicable, includes an individual, a company, a partnership or body unincorporated and its successors and assigns. 1.3 Terms governing accounts Any account opened by the Customer with the Bank and other matters relating thereto shall be governed by the relevant account opening form or mandate signed by the Customer, these Terms and Conditions (as amended and supplemented from time to time in accordance with Clause 13) and the applicable laws of Hong Kong. Customers are required to provide the Bank with accurate, complete and acceptable identification, information and references and to complete and sign such forms and specimen signature cards as may be prescribed by the Bank from time to time in accordance with the relevant laws and regulations. 1.4 Compliance with orders The Customer authorizes the Bank to:- (a) honour and comply with all checks, promissory notes, orders to pay, bills of exchange and other instruments drawn, signed, endorsed, accepted or made by or on behalf of the Customer (even if, where the Bank permits, the relevant account is or will become overdrawn); (b) act on any instructions to deliver or dispose of all or any securities, documents or other property of the Customer held by the Bank from time to time, whether held by way of security, safe custody or otherwise; (c) accept and act upon any instructions to deposit any sum into Customer s account; (d) act on any instructions for the purchase or sale of foreign exchange (both spot and forward); (e) act on any other instructions or directions given in connection with any Customer s account; and (f) accept and rely on any documents signed or given, or appear to be signed or given, by the Customer or any person authorized by the Customer (as determined in good faith by the Bank). 1.5 Minimum balance The Customer is required to maintain such minimum balance in an account as the Bank may from time to time require. 1.6 Closure of accounts (a) The Bank may close any account of the Customer:- (i) if the account has a zero balance or has remained inactive for such period as the Bank may determine; or (ii) with immediate effect if the account, in its opinion, is being used for illegal or improper purposes or has not been conducted in a satisfactory or reasonable manner; or (iii) by providing reasonable prior notice with or without providing specific reasons for closure. (b) Upon notice of closure being sent to the Customer s last known address, the Customer may collect the balance (less all charges) from the Bank during the Bank s normal business hours or the Bank may, at its discretion, remit the balance (less all charges) at the Customer s risk to the last known address of the Customer by check, cashier s order or demand draft issued by it (whichever is applicable). (c) Notwithstanding any other right under this Clause 1.6, the Bank may close or transfer any account of the Customer if the Customer fails to comply with any requirement of these Terms and Conditions in respect of a Foreign Law Requirement, including failing to provide information, documents and supporting materials as required by the Bank or closure or transfer of the account is otherwise necessary or convenient for the purpose of the Bank s compliance with a Foreign Law Requirement. (d) Upon completion of the closure of account referred to in paragraph (b) or (c) above, the Bank shall be totally released or discharged from any further obligations including payment of any check drawn by the Customer and subsequently presented. The Customer agrees to be solely responsible for any and all consequences resulting or arising from such closure. 1.7 Sufficiency of funds (a) The Customer shall ensure that there are sufficient funds in any account in respect of which a service is offered for withdrawing or transferring funds, whether by use of any electronic means or otherwise. The Bank is not obliged to act on any instruction or request for withdrawal or transfer if there are insufficient funds in the relevant account. (b) No account may be overdrawn except by prior arrangement with the Bank. (c) Notwithstanding paragraph (b) above, if a withdrawal or transfer has been made by the Bank without sufficient funds in the relevant account, the Customer shall repay to the Bank on demand the moneys overdrawn or transferred together with handling charges and interest at the rate charged by the Bank for overdrafts. 1.8 Retention of documents (a) The Bank shall have no obligation to retain the checks or documents relating to any account of the Customer. 2 3

4 Photocopies of such checks and documents, if available, may be supplied by the Bank upon payment of a service charge. (b) Without prejudice to paragraph (a) above, the Bank may, at its discretion and at any time, destroy or dispose of all documents received by it in connection with any account of the Customer once the Bank has arranged for these documents to be stored on microfilm or any other medium as the Bank may consider appropriate. 1.9 Signature and chop The Customer is requested to observe the same style of signature and/or seal/chop (if applicable) as set out in the specimen registered at the Bank. The Customer must give prior written notice to the Bank in respect of any change of specimen signature, seal, chop, address or other pertinent particulars recorded with the Bank. Prior to its actual receipt of such notice, the Bank shall be entitled to act on the basis of the most recent instruction or information of the Customer then kept by the Bank. 2. INTEREST, SERVICE CHARGES AND PAYMENTS 2.1 Interest (a) Interest may be earned on such accounts as are determined by the Bank and at such rates as are determined and publicized by the Bank from time to time. These rates will be posted at all branches of the Bank and displayed on the Bank s website for reference only. (b) No interest may be earned on an account if the credit balance in that account is less than the minimum amount specified by the Bank from time to time. 2.2 Service charges (a) The Bank may: (i) levy a service charge on any account of or any special or standing instruction of or any service provided to the Customer; (ii) levy a service charge on an account if the balance in that account falls below the minimum amount prescribed by the Bank or that account remains inactive for such period as the Bank may determine and/or is closed within three months (or any other period as the Bank may determine) from the date on which it is opened; and (iii) with prior notice, impose other types of charges in accordance with the applicable rules of the Hong Kong Association of Banks and/or other applicable laws and rules and in such manner as the Bank at its discretion thinks fit. (b) The Bank may debit the amount of all applicable charges from any account of the Customer and shall inform the Customer of the nature and the amount of such charges after they have been debited from any account of the Customer. (c) Details of the Bank s charges are displayed at all branches of the Bank and are also available upon request. 2.3 Payments All payments by the Customer to the Bank pursuant to these Terms and Conditions shall be made in Hong Kong dollars (or in any other currency in which the relevant liability is incurred) without any deduction, set-off or counterclaim and free and clear of any taxes. If the Customer is required by law to make any deduction or withholding, the Customer shall promptly pay to the Bank such additional amount as may be necessary to ensure that the Bank receives a net amount equal to the full amount which it would have received had payment not been made subject to any deduction or withholding. 2.4 Payments affected by Foreign Law Requirements (a) The Customer acknowledges and agrees that notwithstanding any other provision of these Terms and Conditions: (i) any payments by the Bank under these Terms and Conditions, will be subject to withholding and deduction as required under Foreign Law Requirements; (ii) any amount withheld under (i) may be held in whatever account or in whatever manner determined by the Bank; and (iii) the Bank is not be liable for any gross up, loss or damage suffered as a result of the Bank s exercising its rights under this Clause 2.4. (b) The Customer acknowledges and agrees that any transaction, payment or instruction under these Terms and Conditions may be delayed, blocked, transferred or terminated as required for the Bank to meet its obligations, including those under any Foreign Law Requirement as determined by the Bank. 3. CHECK DEPOSITS AND DRAWING AGAINST UNCLEARED INSTRUMENTS 3.1 Deposits of instruments subject to clearing (a) Deposit of checks or other types of instruments subject to clearing is accepted for collection only and the proceeds will not be available to the Customer until the relevant instrument has been cleared. (b) The Bank shall exercise reasonable care in relation to the custody and presentation of checks and/or other types of instruments presented by the Customer for collection but shall not be liable for loss suffered by the Customer as a result of any loss or destruction of checks/instruments or delay in presentation thereof in the absence of negligence on the part of the Bank. The Bank shall incur no liability as a result of any loss or destruction of checks/instruments or delay in presentation while the checks/instruments are in the custody of any properly authorized third party through whom such checks/instruments are presented for collection. In no event shall the Bank be liable for any consequential loss arising as a result of the loss or destruction of checks/instruments or their delay in presentation. 3.2 Deposits of third party checks Checks payable to the order of a party other than the Customer must be duly endorsed by such party and such checks will be accepted for deposit only at the discretion of the Bank. The Customer agrees to indemnify the Bank against all losses, damages and claims reasonably and properly incurred or sustained by it in connection with such deposit. 3.3 Drawing against uncleared instruments (a) The Customer may not draw against uncleared bills, drafts or checks deposited in the Customer s account until the proceeds or advice of final payment thereof has been received by the Bank. For instruments that are cleared through the Hong Kong Interbank Clearing Limited, the proceeds of those instruments will usually become available on the second Business Day (excluding Saturdays) after the date of deposit. 4 5

5 (b) With respect to instruments that have to be cleared outside Hong Kong, the collection schedule varies depending upon the country involved and the Customer should make inquiry at any branch of the Bank to determine the time required for advice of final payment. The effective date of deposit will be subject to the date of the final payment received by the Bank after the check has been duly cleared. Should any instrument be dishonored and returned by the drawee bank, it will be returned to the Customer and the Customer will be debited accordingly together with all related charges. (c) No interest will accrue on uncollected funds. (d) All instruments received for collection after the normal clearing cut-off time on any Business Day will be treated as received for the Customer s account on the following Business Day (excluding Saturdays). All instruments received for collection on any Saturday will be treated as received for the Customer s account on the following Business Day. 3.4 Uncollected funds (a) Without prejudice to Clause 3.3, if the Bank permits the Customer to draw against funds to be transferred from any account or to be collected, the Customer shall on demand reimburse the Bank in full the amount so drawn if:- (i) the Bank does not receive the funds in full at the time when it ought to have received them; (ii) the transfer or collection of such funds results in any account of the Customer maintained with the Bank being overdrawn; or (iii) after the Bank has accepted the transfer, it is prevented from collecting or freely dealing with the funds in accordance with its usual banking practice. (b) Further, if the Bank accepts any funds to be transferred in favour of the Customer or to be collected in lieu of cash settlement of the Customer s obligation, such settlement shall be conditional upon receipt by the Bank of full payment of such funds in immediately available funds. 4. ACCOUNT STATEMENTS 4.1 Delivery of account statements (a) Account statements will normally be sent to the Customer monthly or at such other intervals as may be arranged. The Bank, however, reserves the right not to send an account statement to the Customer if there is no record of activity in the account during the relevant period. (b) If the Customer fails to receive an account statement within ten Business Days after the end of the period to which the statement relates, the Customer should immediately notify the Bank and request a copy of the same. 4.2 Notification of errors The Customer must notify the Bank of any errors in any account statement, advice or acknowledgement sent to the Customer by the Bank within 90 days of the date of such statement, failing which the statement, advice or acknowledgement shall, subject to Clause 11.2, be deemed to be accepted by the Customer and be regarded as final and conclusive except that the Bank may at its discretion adjust any entries mistakenly or erroneously made by it. 5. SPECIFIC TERMS AND CONDITIONS Without prejudice to the application of other provisions of these Terms and Conditions: (a) checking accounts are further subject to the provisions of Schedule 1; (b) savings and time deposit accounts (including prime-linked savings accounts, fixed rate target savings accounts and prime-linked time deposit accounts) are further subject to the provisions of Schedule 2; (c) Premier Select, Premier Banking and Wise Banking services are further subject to the provisions of Schedule 3; (d) Electronic Banking Services are further subject to the provisions of Schedule 4; (e) Renminbi Banking Services are further subject to provisions of Schedule 5; and (f) Interest Plus Savings Accounts are further subject to provisions of Schedule FOREIGN CURRENCY ACCOUNTS (a) Without prejudice to any other provisions of these Terms and Conditions which are applicable to foreign currency accounts, all deposits into and withdrawals from any foreign currency accounts must be in currencies acceptable to the Bank and, where the conversion of currencies is required, such conversion shall not exceed the daily or transaction limits imposed by the Bank from time to time, if any, and is subject to the prevailing rate of exchange quoted by the Bank at the time of the deposit or withdrawal. (b) The Bank shall not be responsible or become liable for any diminution in the amount or the value of any amount credited to a foreign currency account due to taxes, imposts or depreciation, nor for the unavailability of any currency due to restrictions on convertibility or remittance, requisitions, involuntary transfers, exercise of military or usurped powers, or other similar causes beyond the Bank s control. 7. REMITTANCE SERVICES (a) The Customer agrees that, as a remitter in respect of each remittance transaction, the information in the remittance application form, such as the Customer s name, address and whether a bank account exists with the Bank, is required to be disclosed to the intermediary and receiving banks. (b) The Customer is solely responsible for providing accurate information regarding the receiving party to the Bank for making out-going funds transfer. The Customer acknowledges that the Bank is acting solely as the Customer s agent when providing out-going funds transfer and has no control over the operations of and any service charge imposed at the receiving end. The time of availability of funds at the receiving end of an out-going funds transfer is subject to the location, local telecommunication system and the banking practices of the receiving party. (c) The Customer accepts the risk for any loss, delay, error, omission or mutilation which may occur in the transmission of any out-going funds transfer. The Bank will, however, promptly notify the Customer if an out-going funds transfer cannot be effected. (d) In making an out-going funds transfer, the Bank reserves the right to effect such transfer through any correspondent/agent/intermediary as it may from time to time determine in accordance with its operational requirements. 6 7

6 Where conversion of currencies is required for making an out-going funds transfer, such conversion shall not exceed the daily or transaction limits imposed by the Bank, if any, and is subject to the then prevailing rate of exchange of the Bank. Unless otherwise agreed between the Bank and the Customer, charges and expenses incurred by the Bank or the correspondents/agents/intermediaries of the Bank will be deducted from the funds remitted. (e) In case of cancellation of an out-going funds transfer by the Customer, if the refund of the proceeds is to be made in a different currency, it will be made on the basis of the amount received by the Bank at the Bank s buying rate on the day of refund. Any charges and expenses incurred by such cancellation will be borne by the Customer and will be deducted from the proceeds of the refund. All cable or other charges and commission collected are not refundable. (f) Incoming remittances (denominated in any currency) in favour of the Customer will not be credited into the Customer s account on the day a payment advice is received by the Bank if that payment advice is received after the cut-off time specified by the Bank from time to time or the value date specified in that payment advice is later than the day that payment advice is received by the Bank. No interest will be payable on such incoming remittances until they are actually credited into an interest bearing account of the Customer. (g) In relation to an incoming foreign currency remittance, if the foreign currency remittance is required to be converted into Hong Kong dollars, the Bank s then prevailing buying rate will apply. (h) An advice will be sent to the Customer after each out-going funds transfer or incoming remittance is made or received by the Bank. The Customer should promptly notify the Bank of any errors. 8. JOINT ACCOUNTS Where an account is opened in the name of two or more persons, unless otherwise agreed in writing by the Bank: (a) all obligations and liabilities incurred with respect to the account shall be joint and several; (b) references to the Customer shall be references to each of such persons; (c) each of such persons shall, unless otherwise specified, be entitled to operate the account independently from the others; (d) the Bank shall be entitled to deal separately with any such person on any matter, and may vary the liability or grant time or other indulgence to any such person, without affecting the Bank s rights and remedies against any other such persons; (e) where separate instructions are given by the joint account holders and they are in conflict, the Bank may: (i) act on any of those instructions; or (ii) delay in acting on those instructions until the apparent conflict has been resolved; or (iii) act only on the unanimous instructions of all joint account holders; (f) any notice to any one such person will be deemed effective notification to all such persons; (g) all sums now or in the future received in the name of any one or more of such persons may be deposited, in the Bank s discretion and in the absence of contrary instructions, into the account; (h) all checks, drafts or other monetary instruments payable to any one or more but not all of such persons may be collected by the Bank and paid into the account notwithstanding being crossed Account Payee or Account Payee Only and not endorsed by the payee; (i) any credit balance of such account is and will be owned by such persons as joint tenants with right of survivorship; (j) subject to applicable law, on the death of any of such persons, the Bank will hold any credit balance of the account to the order of the survivor(s) and, in the case of the death of all such persons, the legal representative(s) of the last survivor, on production of a Grant of Probate or Letters of Administration in respect of that last survivor (without prejudice to any right the Bank may have in respect of such balances arising out of any security interest, lien, right of set-off, counterclaim or otherwise); and (k) in the event of death, bankruptcy or liquidation or mental or other incapacity of one or more of such persons, the Bank shall have the right to set off any claims the Bank has or may have against such person or persons howsoever incurred against any credit balance in the account and further, the Bank shall have the right, in its sole discretion, to freeze the account and refuse any dealings therewith or refuse to accept any instructions, where in respect of the account, the services or otherwise. 9. PAYMENT TO LEGAL REPRESENTATIVES The Customer authorizes the Bank to pay and deliver to or to the order of the Customer s legal representative(s), on the production of a Grant of Probate or Letters of Administration in respect of the Customer, any credit balance of any account in the Customer s name (without prejudice to any right the Bank may have in respect of such balance arising out of any security interest, lien, right of set-off, counterclaim or otherwise or to any step which the Bank may deem it desirable to take in view of any claim by any person other than the Customer s legal representative(s)). This paragraph does not apply to joint accounts. 10. SUSPENSION OF ACCOUNTS (a) If the Bank receives notice of a petition for the bankruptcy of a Customer or a Customer begins negotiation with any creditor or creditors for the purposes of considering any individual voluntary arrangement, the Bank may suspend all or any operations relating to accounts maintained in the name of that Customer until the Bank is satisfied that the relevant petition is irrevocably discharged. After such suspension, and notwithstanding the terms of any existing or future account opening forms/mandates signed by the Customer or other agreements between the Bank and that Customer governing the operation of accounts held in the name of that Customer or credit or other facilities or banking arrangements with that Customer, the Bank may in its absolute discretion refuse to act in accordance with any instructions relating to the operation of accounts maintained in the name of that Customer so suspended (whether given before or after the Bank s receipt of notice of petition for bankruptcy of that Customer). 8 9

7 (b) The Bank shall not be liable to the Customer for any action taken or not taken by it with respect to any accounts the operations of which are suspended under paragraph (a) above unless directly caused by the negligence or wilful misconduct of any officer, employee or agent of the Bank. 11. FOREIGN LAW REQUIREMENT INFORMATION AND DISCLOSURE 11.1 Obligation to provide information and supporting materials The Customer undertakes to provide the Bank with such information, documents and certifications as reasonably required by the Bank in order for it to meet its obligations under any Foreign Law Requirement. The Customer acknowledges and agrees that this may include information, documents or certifications in connection with: (a) the Customer; (b) the ultimate beneficial owner of any account; (c) the person ultimately responsible for giving any instruction or for entering into any transaction; (d) any person on whose behalf the Customer acts in receiving payment; and/or (e) any other person identified by the Bank in its sole and absolute discretion as being connected with the Customer Use and disclosure for the purpose of any Foreign Law Requirement The Customer agrees that the Bank may disclose any information, documents or certifications in relation to the Customer and/or any person referred to in Clause 11.1 to any person or Government Authority, whether or not established under Hong Kong law, as required under any Foreign Law Requirement as determined by the Bank Offshore disclosure The Customer acknowledges and agrees that information and documents may be disclosed to third parties located inside or outside Hong Kong Change of details The Customer must promptly notify the Bank in writing of any change in: (a) the Customer s particular(s), circumstance(s), status, including any change in citizenship, residence, tax residency, address(es) on record, telephone or facsimile number and address; (b) (where applicable) the Customer s constitution, shareholders, partners, directors or company secretary, or the nature of the Customer s business; or (c) the address or contact telephone number or other personal particulars recorded with the Bank in respect of any person referred to in Clause COMPLAINTS, LIABILITY AND INDEMNIFICATION 12.1 Complaints The Customer may register a complaint by writing to any branch of the Bank. Such complaint must clearly identify the Customer, the Customer s account number, the Customer s address and the specific nature of the complaint Liability and indemnification (a) The Bank shall not be liable for any liability, claim, loss or damage, demand, tax, cost, charge or expense of any kind which may be incurred or suffered by the Customer or any actions or proceedings which may be brought by or against the Customer as a result of or arising from:- (i) the failure of the Customer to comply with these Terms and Conditions and to exercise due care in his dealings with the Bank; (ii) the Customer providing misleading or false information in respect of itself of any other person or matter in connection with these Terms and Conditions; (iii) the misunderstanding or misinterpretation of any instruction whether given by phone, electronic means or otherwise (provided that the Bank acts in good faith); (iv) the inability of the Customer to gain access to or utilize any electronic banking service offered by the Bank; or (v) any failure of the Bank to perform any obligation or service or take any action where such inability or failure is attributable directly or indirectly to any circumstance or event beyond the reasonable control of the Bank, including any equipment or computer malfunction, power, network or telecommunication failure or inadequacy, interruption, interception, error, delay or loss in transmission or transfer facilities, or the act or omission of any third party, (vi) any reasons or causes beyond the Bank s control, including without limitation, complying with any law, regulation, code, order, court freezing order, notice, guideline, directive or at the request of public or regulatory or governmental authorities or as a result of any levy, tax, embargo, moratorium, exchange restriction or other act of government or other authority, any loss and mistake of postal or other strikes, closure or suspension of trading on any exchange, board of trade, market or clearing house, any act of God, fire, flood, frost, typhoon storm, explosion of force majeure. except where such loss or damage is reasonably foreseeable and directly caused by (1) unauthorized transactions arising from forgery or fraud by any third party including any employee, agent or servant of the Customer and in relation to which the Bank has failed to exercise reasonable care and skill; (2) unauthorized transactions arising from forgery or fraud by any employee, agent or servant of the Bank; or (3) other unauthorized transactions arising from the wilful misconduct or negligence on the part of the Bank or any of its employees, agents or servants. (b) The Customer shall hold harmless and indemnify the Bank, its officers, employees and any other person appointed by the Bank against all actions, liabilities, claims, demands, losses, damages and taxes, of any kind made against or incurred by the Bank and such reasonable costs and expenses reasonably incurred by it (including legal fees) in connection with the maintenance of, or dealings with, the account or dealing with any instrument for payment of money at the request of the Customer or the Bank s provision of services, and/ or the exercise of the powers and rights of the Bank under these Terms and Conditions, unless such liabilities, claims, costs, damages, expenses, actions or proceedings are caused directly by the negligence or wilful misconduct of any officer, employee or agent of the Bank

8 12.3 No consequential damages If the Bank is found liable for any act or omission, negligence or default, its liability shall be limited to the lesser of the amount of the direct loss or actual damage and the amount of the relevant transaction. The Bank shall not be responsible for any loss of profit or any special, consequential or indirect loss or damage arising out of such act, omission, negligence or default. 13. SET-OFF 13.1 Set Off The Bank may, at any time without prior notice, combine or consolidate any accounts (of whatever nature, wherever situate, whether in the name of the Customer solely or jointly with other(s) and whether subject to notice or not), and set-off, debit, withhold, apply and/or transfer any sum standing to the credit of one or more of the accounts in or towards satisfaction of the Customer s obligations and/or liabilities to the Bank on any other account or in any other respect whatsoever, whether such obligations and/or liabilities be present or future, actual or contingent, primary or collateral, several or joint, secured or unsecured and whether they are owed by the Customer to the Bank in whatever capacity, and, where such combination, consolidation, set-off, debit, withholding, application or transfer requires the conversion of one currency into another, such conversion shall be calculated at the spot rate of exchange (as conclusively determined by the Bank) prevailing in the relevant foreign exchange market at the relevant time. In the case of a joint account, the Bank may exercise its rights in these Terms and Conditions and apply any credit balance in such joint account in or towards satisfaction of any obligations and/or liabilities owed to the Bank by any one or more of the Customers. The Bank shall, as soon as practicable, give notice to the Customer of any exercise of the Bank s right under this Clause Lien The Customer authorizes the Bank to exercise a lien over all the Customer s property coming into the possession or control of the Bank for any reason whatsoever, whether or not in the ordinary course of banking business, with power for the Bank to sell such property, if necessary, and apply the net proceeds to satisfy any of the Customer s obligations and/or liabilities to the Bank Other Rights The rights of the Bank under this Clause 13 shall be in addition and without prejudice to any lien or other right whatsoever to which the Bank may be entitled by law and shall apply to all liabilities of the Customer to the Bank, whether such liabilities or any of them arise on any account or in any other respect or manner whatsoever. 14. AMENDMENTS The Bank may, by prior notice, vary, amend or supplement any of these Terms and Conditions and such variation, amendment or supplement shall take effect on the date specified in the notice. Such notice will be given to the Customer in accordance with Clause 16. The Customer should notify the Bank before the effective date if he does not accept any such amendment. 15. PERSONAL DATA PROTECTION Any personal data (as defined in the Personal Data (Privacy) Ordinance (Cap. 486 of the Laws of Hong Kong)), which the Customer provides to the Bank will be treated in accordance with the Bank s Notice to Customers relating to the Personal Data (Privacy) Ordinance from time to time provided to the Customer and which is expressly incorporated into these Terms and Conditions. 16. NOTICES (a) Any notice, demand or other communication may be sent to the Customer in writing to his last known address or by facsimile to his last known facsimile number. Written notice, demand or other communication shall be deemed to have been duly sent to and received by the Customer (i) if delivered personally, at the time of delivery; (ii) if sent by post, on the second Business Day after the day of posting if the address is in Hong Kong (and seven days after posting if the address is outside Hong Kong); and (iii) if sent by facsimile transmission, or other electronic means, at the time of despatch. (b) All notices or announcements by the Bank in connection with any of the accounts, services or charges governed by these Terms and Conditions shall also be deemed duly given or made and effective and binding on the Customer if the Bank has: (i) displayed the notice or announcement at the Bank s branches; or (ii) advertised the notice or announcement in a daily newspaper circulating in Hong Kong; or (iii) sent the notice or announcement by ordinary mail to the last known address of the Customer; or (iv) in relation to transactions operated through electronic banking services offered by the Bank, put the notice or announcement on the Bank s website whether or not the Customer has retrieved or read the notice. 17. MISCELLANEOUS 17.1 No waiver No act or omission by the Bank pursuant to these Terms and Conditions shall affect its rights, powers or remedies Assignment No assignment of any rights or obligations of the Customer under these Terms and Conditions shall be effective without the prior written consent of the Bank Business Practice The Bank shall be entitled to act in accordance with its regular business practice and procedure and will only accept instructions insofar as it is (in the Bank s opinion) practicable and reasonable to do so and may refuse to accept or act on any instruction which may adversely affect the interest of the Bank. For the avoidance of doubt, the Bank is authorized to participate in and comply with the rules and regulations of any organisation which regulates the conduct of banking business and any system which provides central clearing, settlement and similar facilities for banks but, in each case, without liability for any acts or omissions on the part of the operator or manager of any such organisation or system Recording and records The Bank is authorized to record by all means all telephone conversation and all forms of instructions given by the Customer (or any person acting on Customer s behalf) in connection with any accounts and/or services provided by the Bank. The Bank will keep those records for the period as the Bank considers necessary

9 Such record as may be deemed by the Bank as conclusive and binding evidence in any dispute that may arise Severability Each of the provisions of these Terms and Conditions is severable and distinct from the others and, if at any time any of the provisions of these Terms and Conditions is or becomes illegal, invalid or unenforceable in any respect, under the law of any applicable jurisdiction, the legality, validity or enforceability of the remaining provisions under that law and the legality, validity or enforceability of the relevant provisions under the law of any other jurisdictions shall not be affected Governing version The English version of these Terms and Conditions is the governing version and shall prevail if there is any discrepancy between the English version and the Chinese version Rights of Third Parties No person other than the Bank and the Customer will have any right under the Contracts (Rights of Third Parties) Ordinance to enforce or enjoy the benefit of any of the provisions of the Terms and Conditions. 18. GOVERNING LAW AND JURISDICTIONS These Terms and Conditions are governed by and shall be construed in accordance with the laws of the Hong Kong SAR. Each transaction or its underlying investment or instrument shall be subject to the laws of the jurisdiction where it is made or located and also the rules, regulations, guidelines, policies and directives of all relevant governmental and other regulatory bodies and agencies. The Customer submits to the non-exclusive jurisdiction of the Hong Kong courts but these Terms and Conditions may be enforced in the courts of any competent jurisdiction. SCHEDULE 1 TERMS AND CONDITIONS FOR CHECKING ACCOUNTS The following terms and conditions apply to all checking accounts and related services provided by the Bank to its Customer. The Terms and Conditions for Accounts and Related Services (the Terms and Conditions ) from time to time issued by the Bank shall apply to the following as if those Terms and Conditions are set out in this Schedule in full. 1. Drawing of checks (a) Checks may only be drawn on check forms provided by the Bank in the currency in which the account is denominated. (b) Upon closure of any checking account with the Bank, the Customer must either return to the Bank or destroy all unused checks. 2. Delivery of check books Upon receipt of an application for new check book(s), the Bank will deliver, at the cost of the Customer, the required check book to the Customer s address provided to the Bank in the manner instructed by the Customer. The Bank assumes no responsibility for any delay or loss occasioned by such mode of delivery unless such delay or loss is directly caused by the negligence and wilful misconduct of the Bank. 3. Manner in dealing with check books (a) Upon receipt of a check book, the Customer should count the number of checks carefully and examine the account and serial numbers printed thereon. Any discrepancy should immediately be reported to the Bank. (b) Check books must at all times be kept in a safe place to guard against loss or theft. (c) When a signed check or a check book is lost or stolen, the Customer must immediately report such loss by notice in writing to the Bank. The Bank will not be responsible for any loss suffered by the Customer if any payment has been made before such report is actually received by the Bank. 4. Manner in drawing checks (a) In drawing a check, the Customer is advised that the amount both in words and figures should be written distinctly in non-erasible ink or ball-point pen and that to prevent fraud, the amount in both words and figures should begin as near to the left hand margin as possible, so that other words or figures cannot be inserted. A line should be drawn or the words only should be added after the amount expressed in words. (b) All alterations on checks must be confirmed by the full signature of the Customer. The Bank will not be responsible for losses arising from alterations which cannot be readily detected. If a mistake is made in the amount of the check, it is advisable to cancel the check and issue a new one. (c) The Customer agrees to exercise care when drawing checks and that the Customer will not draw checks by any means and/or in any manner which may enable a check to be altered or may facilitate fraud or forgery. 5. Checks sent by post All checks sent by post or otherwise should be crossed with the words OR BEARER deleted so that they can then only be paid 14 15

10 through banks. The checks should also be accompanied by a letter giving details of instructions to the Bank if they are sent for credit of an account. 6. Stop payment (a) Should a Customer desire to stop payment on a check, complete instructions fully identifying the check must be given to the Bank together with any further documentation required by the Bank. Such instructions shall include: (i) the check number; (ii) the date of issuance; (iii) the payee s name; and (iv) the amount. (b) The Customer agrees:- (i) to indemnify the Bank against any loss of reasonable amount which may be reasonably incurred or sustained by the Bank as a result of payment or non-payment of the check; (ii) that the Bank will not be liable for failing to carry out the Customer s instructions unless the failure is caused by the negligence or wilful misconduct of any officer, employee or agent of the Bank; (iii) to notify the Bank promptly in writing or by other means acceptable to the Bank, if the check is recovered or destroyed or when the instructions are to be cancelled; and (iv) that instructions are automatically cancelled six months after the date of the issuance of the check. 7. Liability (a) The Customer acknowledges that the Bank shall not be liable for any loss incurred by the Customer arising out of his failure to comply with these terms and conditions and to exercise due care in the handling and use of checks and the conduct of the account generally. (b) The Bank is not obliged to honour any stale check (i.e. a check which has been issued for more than six months or such other period as is customary for this purpose), any post-dated check or any check which is defaced, incorrectly completed or altered without confirmation by the full signature of the Customer. If it does so other than as a result of negligence or wilful misconduct of any officer, employer or agent of the Bank, the Bank shall incur no liability to the Customer for having done so. 8. Service charge (a) The Bank may levy a service charge at such rate as determined by the Bank for each check issued by the Customer and dishonoured by the Bank on account of insufficient funds in the Customer s account or any irregularities appearing on the check. (b) The Bank may impose a handling fee for all returned checks, if applicable to a particular checking account, calculated on such basis as from time to time determined by the Bank on the aggregate payments drawn on such checking account which exceeds the daily limit as imposed by any relevant authorities from time to time. 9. Withdrawal and payments (a) The Bank reserves the right at any time, in its sole discretion, to satisfy a withdrawal request from a checking account by:- (i) telegraphic transfer; (ii) payment in bank notes; (iii) issuing a cashier s order or demand draft; or (iv) in the case of a withdrawal from a foreign currency checking account, issuing a check drawn by the Bank on a bank in the country of that currency, payable in that currency, subject to the laws and regulations and to any government measures or restrictions of that country; or payment of an equivalent amount in Hong Kong dollars calculated at the Bank s buying rate prevailing at the time of payment. (b) Any withdrawal from a foreign currency checking account of banknotes in that currency is subject to the availability of banknotes in that foreign currency at the time of withdrawal. 10. Method of clearing checks (a) Checks 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 (b) The Bank is authorized to contract inter alia with collecting banks and HKICL in accordance with the terms stated in (a) above. (c) The Bank may levy a service charge at such a rate as determined by the Bank for each request for a presentation of the original or copy of the paid check by the customer(s). (d) The Bank shall not become liable for any unavailability of the physical original or copy of the paid check, nor the Bank has any control over the retrieval time

11 SCHEDULE 2 TERMS AND CONDITIONS FOR SAVINGS AND TIME DEPOSIT ACCOUNTS (INCLUDING PRIME-LINKED SAVINGS ACCOUNTS, FIXED RATE TARGET SAVINGS ACCOUNTS AND PRIME-LINKED TIME DEPOSIT ACCOUNTS) A. GENERAL PROVISIONS The following terms and conditions apply to savings (statement or passbook savings) and time deposit accounts (including primelinked savings accounts, fixed rate target savings accounts and prime-linked time deposit accounts) denominated in any currency and related services provided by the Bank to its Customer. In addition to Part A of this Schedule, prime-linked savings accounts, fixed rate target savings accounts and prime-linked time deposit accounts are subject to the additional terms, as applicable, set out in Part C of this Schedule which shall prevail in case of any inconsistency between Parts A, B and C. The Terms and Conditions for Accounts and Related Services (the Terms and Conditions ) from time to time issued by the Bank shall apply to the following as if those Terms and Conditions are set out in this Schedule in full. 1. Withdrawals and payments (a) Withdrawals from any savings or time deposit account of the Customer at the counter may be made at any branches of the Bank in Hong Kong upon completion of the appropriate withdrawal request provided by the Bank or by any other manner pre-arranged with the Bank. (b) the Bank reserves the right at any time, in its sole discretion to satisfy a withdrawal request by: (i) telegraphic transfer; (ii) payment in bank notes; (iii) issuing a cashier s order or demand draft; or (iv) in the case of a withdrawal from a foreign currency account, issuing a check drawn by the Bank on a bank in the country of that currency, payable in that currency, subject to the laws and regulations and to any government measures or restrictions of that country; or payment of an equivalent amount in Hong Kong dollars calculated at the Bank s buying rate prevailing at the time of payment. (c) Any withdrawal from a foreign currency account of banknotes in that currency is subject to the availability of banknotes in that foreign currency at the time of withdrawal. (d) Any payment made by the Bank to a person producing the passbook or withdrawal slip purporting to be signed, sealed or chopped as authorized 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. 2. Interest (a) Interest on a savings account will accrue on the daily credit balance of the account and at such rates as determined by the Bank from time to time. Accrued interest will be credited to the savings account on monthly basis. (b) Interest on a time deposit (including, inter alia, fixed rate target savings deposit but excluding prime-linked savings deposit or prime-linked time deposit) is fixed for the entire deposit period and is payable to the Customer on the maturity date (except under arrangement specifically agreed by the Bank). 3. Charges The Bank may charge a commission on the face amount of foreign currency notes, checks, drafts, payment orders or other monetary instruments deposited into a foreign checking account. 4. Initial and further deposits (a) The Customer shall place an initial deposit with the Bank in an amount as from time to time specified by the Bank. (b) For time deposits and other types of deposits as specified by the Bank, any further deposit, transfer or withdrawal shall be in a minimum amount as from time to time specified by the Bank. B. ADDITIONAL TERMS AND CONDITIONS FOR TIME DEPOSIT ACCOUNTS The following terms and conditions, as applicable, apply to time deposit accounts opened and/or maintained by the Customer with the Bank. 1. Maturity of deposits (a) Prior to or upon maturity of a time deposit, the Customer may give maturity instructions to the Bank as to how to handle the principal plus interest of the matured deposit. The deposit and interest may be uplifted and transferred to any other account of the Customer with the Bank. As regards, time deposit other than fixed rate target savings deposit, the deposit and interest may be drawn in favour of the Customer or such other person at the request of the Customer by means of cashier s order or in such other manner as may be agreed between the Bank and the Customer, and the Bank may charge a prescribed sum for issuing the cashier s order or using other means of payment of such deposit and interest as agreed between the Bank and the Customer. (b) In the absence of any maturity instruction, the principal and interest of such matured deposit will be placed in such account in the name of the Customer with the Bank as the Bank thinks fit. Interest will be earned on such account at the prevailing rate applicable to the regular savings as determined by the Bank from time to time. 2. Non-Business Day If a deposit matures on a day which is not a Business Day or is a Saturday, the deposit shall be payable on the next Business Day (excluding Saturdays) and interest shall be paid to but excluding that day. 3. Early or partial withdrawal A time deposit may not be withdrawn prior to maturity. Any withdrawal or partial withdrawal of a time deposit prior to maturity shall only be permitted at the discretion of the Bank in which case the Bank may levy a charge and/or forfeit the interest accrued on the deposit in whole or in part. C. ADDITIONAL TERMS AND CONDITIONS FOR PRIME- LINKED SAVINGS ACCOUNTS, FIXED RATE TARGET SAVINGS ACCOUNTS AND PRIME-LINKED TIME DEPOSIT ACCOUNTS The following terms and conditions apply (where the context requires) to prime-linked savings accounts, fixed rate target savings 18 19