Code of Banking Code of Practice Banking FIFTH Practice · PDF filecode of Banking Practice which took effect from 1 July 2007. compliance ... standards or practices may apply to products

C o d e o f B a n k i n g Practice

|FIFTHE D I T I O N 2012

Code of Banking Practice

|FIFTHE D I T I O N 2012

n z b a . o r g . n z

1new zealand bankers association

contents1 introduction 3

1.1 thiscode 31.2 GoverningPrinciplesandobjectivesofthecode 41.3 dealingwithcomplaintsanddisputeresolutionSchemes 5

2 communication 72.1 customerPrivacy 72.2 communicationwithYou 82.3 Bankdisclosure 9

3 ProductSandServiceS 103.1 accounts,ProductsandServices 103.2 PaymentServices 12

4 chequeS 144.1 cheques 144.2 Bankcheques 15

5 credit 175.1 Provisionofcredit 175.2 GuarantorsandProvidersofotherSecurity 19

6 PinSandPaSSwordS 216.1 PinsandPasswords 21

7 cardS 237.1 cards 237.2 Liability 257.3 merchantcardServices 26

8 internetBankinG 288.1 GeneralPrinciples 28

9 otherServiceS 339.1 ForeignexchangeServices 339.2 otherFinancialServices 34

10 StatementSandaccountinFormation 3510.1 Statementsandaccountinformation 35

11 aPPendix 3711.1 Glossary 3711.2 PrincipalLegislation 4311.3 ParticipatingBanks 46

index 47


1 introduction

1.1 thiscode

(a) thiscodehasbeenpreparedbythememberbanksofthenewZealandBankers’associationandiseffectivefrom1July2012.itreplacesthecodeofBankingPracticewhichtookeffectfrom1July2007.compliancebyparticipatingbankswiththecodeisconsideredbyapproveddisputeresolutionSchemesthroughcomplaintinvestigationsundertakenfromtimetotime.Formalreviewofthiscodebyparticipatingbankswillbecommencedwithinthreeyearsoftheeffectivedate.consultationwiththepublic(includinginterestedorganisations)willtakeplaceduringthereviewprocess.changestobankingpractice,technologyandlegislationmayalsojustifyaninterimreviewandamendmentofthecode.

(b) inthiscode“we”,“our”or“us”meansyourbank,“you”or“your”meansyouthecustomer.

(c) thiscoderecordsgoodbankingpractices.weagreetoobservethesepracticesasaminimumstandard.thiscodeisnotacompleterecordofourrelationshipwithyou,asspecificproductsandservicesmayhavetheirowntermsandconditions.thesetermsandconditionsmayincludeadditionalrightsandobligationsforbothyouandus.thiscodedoesnotalterorreplacethosetermsinanyway.

(d) wewillensurethatourstaffareawareofthecodeandtheminimumstandardsofgoodbankingpracticethatarerelevanttotheirareaofwork.

4 code of banking Practice | fifth edition | 2012

(e) othercodes,actsofParliament,orinternationallyacceptedbankingstandardsorpracticesmayapplytoproductsandservicessoldbyusdirectlyoronbehalfofanotherparty.weshallcomplywithallourlegalobligationsincludingthosestatuteslistedunderclause11.2.

(f) thiscodeappliestoourrelationshipwithallourcustomersotherthanourwholesalecustomers.

(g) intheappendixtothecodeyouwillfind:

(i) aglossarydefininganumberoftermsusedinthiscode;and

(ii) alistoftheprincipallegislationandthatmayaffectservicesprovidedbybanksinnewZealand.

(h) copiesofthiscodeareavailableatallBranches,onbankwebsites,andonrequestfromus.theyarealsoavailablefromthenewZealandBankers’association.thecontactdetailsforthenewZealandBankers’associationareasfollows:

New Zealand Bankers’ Association Level14,kordiahouse,109-125willisStreetPoBox3043,weLLinGton6140

telephone:(04)8023358website:www.nzba.org.nz

1.2 GoverningPrinciplesandobjectivesofthecode

(a) thepurposeofthecodeisto:

(i) recordandcommunicatetoyoutheminimumstandardsofgoodbankingpracticethatwewillobserve;and

(ii) maintaingoodbank/customerrelationshipsandcommunication.

(b) inordertoachievetheseobjectiveswewill:

(i) complywiththeprovisionsofthiscode;

(ii) provideyouwithtimelyinformation,usingplainlanguagewherewecan,tohelpyouunderstandhowyouraccountsandproductsorservicesoperate,sothatyoucandecidewhethertheyareappropriatetoyourneeds;

(iii) useourbestendeavourstomakesurethatourbankingsystemsandtechnologyaresecure;and

http://www.nzba.org.nz


(iv) actfairlyandreasonablytowardsyou,inaconsistentandethicalway.whatmaybefairandreasonableinanycasewilldependonthecircumstances,includingourconductandyours.

(c) wewillrecognisetheneedsofelderlyanddisabledcustomerstohaveaccesstobankingservicesandwewilluseourreasonableendeavourstoenhanceaccesstothoseservicesforthesecustomers.ininterpretingreasonableendeavoursforthepurposesofthisclausewewillbeguidedbythedefinitionofreasonableaccommodationascontainedintheglossary.

(d) Pleaseaskusforclarificationifyoudonotunderstandanyoftheinformationthatweprovide.

(e) Youmaywanttoseekindependentlegalorotherprofessionaladvicerelatingtotheproductsandservicesweprovide.wewillco-operatewithyouradvisersand,onrequest,supplytheinformationtheywillneedtoadviseyouproperly.

1.3 dealingwithcomplaintsanddisputeresolutionSchemes

Dealing with Complaints (a) ifyouwanttomakeacomplaint,youshouldfirstinformusofthecomplaint.

wewillofferfreecomplaintsreviewproceduresforhandlingcomplaintsaboutanyofourproductsandservices.theFinancialServiceProviders(registrationanddisputeresolution)act2008alsorequiresfinancialserviceproviderstobelongtoanapproveddisputeresolutionSchemesuchastheBankingombudsmanScheme.

(b) ifyouhavemadeacomplaintaboutourproductsorservices:

(i) wewillacknowledgetoyouwehavereceivedyourcomplaintwithinfivebusinessdaysofourreceiptofyourcomplaint;

(ii) wewillundertakeareviewunderourowninternalcomplaintsprocedures;

(iii) ifyouaredissatisfiedwithourdecision,wewillinformyou(usuallyinourfinalresponsetoyou)thatyoumayreferyourcomplainttoourapproveddisputeresolutionSchemeforfurtherconsideration,andwewillalsoprovideyouwiththecontactdetailsforthatdisputeresolutionScheme;and


(iv) thedisputeresolutionSchememaythenindependentlyreviewyourcomplaintandmakearecommendation.

(c) ourinternalcomplaintsprocedureswill:

(i) bedocumented;

(ii) beaccessibletoyou;and

(iii) provideforthetimelyresolutionofcomplaintsinafairandreasonablemanner.

(d) BrochuresrelatingtoourcomplaintsproceduresandthedisputeresolutionSchemeofwhichweareamemberwillbeondisplayinallofourBranches.ourcomplaintsprocedureswillalsobeavailableonourwebsitesandonrequestfromus.

Dispute Resolution Schemes(e) BankssubscribingtothiscodealsobelongtoadisputeresolutionScheme.

theprimarypurposeofthedisputeresolutionSchemeistoreviewandrecommendwaystoresolveyourdisputesthatremainunresolvedafterconsiderationunderyourbank’sinternalcomplaintsprocedures.detailsofthedisputeresolutionSchemeofwhichyourbankisamemberareavailablefromyourbank.ifyourbankisamemberoftheBankingombudsmanScheme,detailsofthatfreeschemeareavailablefromusorfromtheBankingombudsman.theBankingombudsmanmay,whereappropriate,refercomplainantstootherorganisationssuchastheinsuranceandSavingsombudsman,thePrivacycommissionerorthehumanrightscommissioner.contactdetailsfortheBankingombudsmanareasfollows:

Office of the Banking OmbudsmanLevel11,BPhouse,20customhousequayPoBox10573,theterraceweLLinGton6011

Freephone:0800805950Fax:(04)4710548email:[email protected]:www.bankomb.org.nz

mailto:[email protected]

http://www.bankomb.org.nz


2 communication

2.1 customerPrivacy

(a) wehaveastrictdutytoprotecttheconfidentialityofallourcustomers’andformercustomers’affairs.wearealsoobligedinourdealingswithourpersonalcustomerstoobserveandcomplywiththePrivacyact1993.

(b) whenyouaredealingwithuswemayaskyoutoproveyouridentity.thishelpsusprotectyourpropertyandinformation.

(c) wewillendeavourtoensurethatyourinformationthatweholdisaccurate.Promptadviceofanychangesinyourpersonalcontactdetailssuchasresidentialoremailaddress,ortelephoneorfacsimilenumberswillhelpustodothis.thisisveryimportantbecausewewillthenbeabletocommunicatewithyouandsendyouinformationonyouraccountsandotherrelevantmatters.

(d) wewillonlyusetheinformationweholdaboutyouforthepromotionofotherproductsorservicesifyouhaveconsentedtothis.ifyoudonotwishtoreceivepromotionalmaterialfromusatanytime,tellusandwewillnotsendit.

(e) werequireallofouremployees,contractorsandagentstosignaconfidentialityagreement.

(f) Youcanhelpustoprotectyourconfidentialinformationbykeepingallinformationregardingyouraccounts,productsandservicesinasafeplace.


(g) whenyouaredealingwithusbytelephone,yourconversationwithusmayberecordedforverificationortrainingpurposes.

(h) certaincircumstancesrequireustodiscloseyourconfidentialinformation,forexample,underthetaxadministrationact1994theinlandrevenuedepartmentmayrequestcertaininformationfromus,ascouldothergovernmentagenciesordepartmentsunderrelevantlegislation.wemayberequiredtodiscloseinformationonindividuals,companiesandotherentitiesforthepurposeofinvestigation.Section11.2ofthiscodelistsexamplesofsomeadditionallawsthatmayrequireustodiscloseyourconfidentialinformation.

2.2 communicationwithYou

(a) wewillprovideinformationtoyoufromtimetotimeusingplainlanguagewherewecan.thismayincludeadvisingyouofchangesthatmayaffectyourbusinesswithus.wewillcommunicatewithyouinatleastoneofthefollowingways:

(i) bydirectcommunication(e.g.byletter,email,faxortelephone);

(ii) bydisplayinginformationinallBranches;

(iii) bynoticeinthemedia(includingpublicnotices);

(iv) bynoticeonourwebsite;or

(v) byanyelectronicbankingchannelusedbyyou.

(b) whenthereisachangetothetermsandconditionsofanybankingservice,includingchangestofeesandcharges,wewillgiveyouatleast14days’noticeofsuchchangeinatleastoneofthefollowingways:

(i) bydirectcommunication(e.g.byletter,email,faxortelephone);

(ii) bydisplayinallBranches;

(iii) bynoticeinthemedia(includingpublicnotices);

(iv) bynoticeonourwebsite;or

(v) byanyelectronicbankingchannelusedbyyou.

(c) Priornoticeisnotrequiredforinterestratechangesandothervariationsthataresubjecttomarketfluctuations.

(d) Youareresponsibleforinformingusofanychangeofyournameoraddress.


2.3 Bankdisclosure

(a) YoumayrequestacopyofourcurrentquarterlydisclosureStatement.

(b) inadditiontoanyotherdisclosurerequiredbylaw,wewillmakeavailabletoyouthetermsandconditionsofanyproductorserviceyouhave,bothatthetimeyoutakethatproductorserviceanduponrequestbyyouatalaterstage.

(c) atthetimeyouopenanaccount,wewillinformyouofthedetailsofstandardfeesandchargespayableforthenormaloperationoftheaccount.wewilladvisechargesforotherproductsandservicesonrequestoratthetimetheproductorserviceisoffered.

(d) wewillmakesureouradvertisingandpromotionalmaterialisnotdeceptiveormisleadingandthatitcomplieswithallrelevantlegislation.

(e) wewillinformyouofournon-standardfeesandchargesbeforepaymentisdue.theremaybechargesfromotherparties(includingoverseasbanks)ofwhichwehavenoknowledgeorcontrol.iflegalchargesaretobepassedontoyou,youwillbetoldtheamountduebeforewepaytheaccount(providedyourcontactdetailsareuptodate).YourrighttoapplyforareviewofthecostsyouhavebeenchargedwillthenbepreservedundertheLawPractitionersact1982ortheLawyersandconveyancersact2006.

(f) anyadvertisementthatincludesadepositinterestratewillstatethatfulldetailsofthetermsandconditionswillbeavailableonrequestandwillalsoincludeanyotherdisclosurerequiredbylaw.ifyourequestit,wewillprovideyouwiththefollowinginformation:

(i) therateofinterest,andwhetheritmaychangeovertheperiodofthedeposit,howtheinterestiscalculatedandwheninterestwillbecreditedtoyouraccount;

(ii) anyfeesandchargesyoumustpay;

(iii) anygovernmentchargesandtaxesyoumustpay,includingresidentwithholdingtax,non-residentwithholdingtaxandapprovedissuerLevy;and

(iv) otherinformation,suchastheconsequencesofwithdrawingdepositsearlyorinpart.


3 productsandservices

3.1 accounts,ProductsandServices

Opening Accounts (a) Beforeoratthetimeyouopenanaccount,wewilladviseyouoftherights

andobligationsrelatingtothataccount.thisinformationwillinclude:

(i) thetypeofaccount;

(ii) howandbywhomtheaccountistobeoperated(i.e.individuallyorjointly);

(iii) howfundsmaybeputintoorwithdrawnfromtheaccount;

(iv) whowillbeliableforrepayinganyexistingandfuturedebtsontheaccount(e.g.iftheaccountisajointaccount);and

(v) anyadditionaltermsandconditionsthatmayapplywhenauthorisingotherstoaccessyouraccount.

(b) wereservetherightnottoopenanaccountforyou.

(c) wearerequiredbylawtosatisfyourselvesastoyouridentity.thisistoprotectyou,aswellastoavoidpossiblemisuseofthebankingsystem.Youwillbeadvisedwhatidentificationisrequired.ifyoudonothavethemorecommonformsofidentification,youshouldletusknow,asanalternativemeansofidentificationmaybeacceptable.


New Accounts, Products or Services (d) whenweintroducenewaccounts,productsorservices,wewillensure

informationontheprice,natureand/ortermsandconditionsoftheaccount,productorserviceisavailable.wemaycommunicatewithyouaboutnewaccounts,productsorservices.alternatively,wemayadvertiseinthemedia,Branchesoronourwebsiteoranycombinationofthese.ifyouwouldliketoknowmoreaboutthesenewaccounts,productsorservices,youmaywishtocontactustoobtainmoredetail.

(e) wereservetherightnottoofferyouproductsandservices.

Moving or Suspending Accounts (f) ifyouwishtomoveyouraccounttoanotherbankoranotherpartyrequests

ustodosoonyourbehalf,wewillco-operateinatimelymannerwiththerequest,subjecttoanylegalconstraints.

(g) wemaysuspendtheoperationofyouraccountforvariousreasons.thesemayinclude:

(i) complyingwithacourtorder;

(ii) youhavebeenadjudicatedbankrupt;

(iii) thereareinsufficientfundsinyouraccount;

(iv) ifwearenotifiedbyanypartyofadisputeovereithertheownershipoffundsortheoperationoftheaccount;

(v) forcharitabletrust,incorporatedsocietyandbusinessaccounts(andothersimilartypesofaccounts)wemaystoptheoperationoftheaccountwhollyorpartiallyuntiltheauthorityofthepersonrepresentingthecharitabletrust,incorporatedsocietyorbusinessorotherentityasthecasemaybeinitsdealingswiththebankisclarified;or

(vi) toprotectoneorallofthepartiestotheaccount,usorathirdpartywhohasreasonablyclaimedaninterestintheaccount.

(h) whenoperationofanaccountissuspended,wewilladviseallaccountholdersassoonaspossible.

Closing of Accounts and the Withdrawing of Products and Services (i) eitheryouorwemayendanybankingrelationshipatanytime,andwe

maywithdrawanyproductorservice,aslongasanyrelevanttermsandconditionsareadheredto.wewillnotnormallycloseyouraccountsorwithdrawaproductorserviceuntilwehavegivenyouatleast14days’notice


settingouttherelevantdetails.however,theremaybecircumstanceswherewecloseyouraccountorwithdrawaproductorservicewithoutpriornotice.examplesare:

(i) complyingwithacourtorder;

(ii) ifyouhaveactedunlawfully;

(iii) ifyouhavebreachedourtermsandconditions;or

(iv) ifyouhaveactedabusivelytoourstaff.

(j) whenanaccountisclosed,wewillrequestthatyoureturnordestroyallunusedchequesandanycardrelatingtothataccount.

(k) anyfundsremaininginyouraccountattimeofclosurewillbereturnedtoyou,subjecttoanytermsandconditions,feesorinterestapplyingtothosefunds.Further,ifthereisanydisputeoverthesefundswemaynotbeabletoreturnthemtoyou.

(l) ifapartytoajointaccountadvisesusthathe/shewishestowithdrawfromthatjointaccount,wewilleitherstoptheaccountorremovethatpartyfromtheaccount.inbothcases,allpartiestotheaccountwillbeadvisedassoonaspossible.however,thejointliabilityforalldebt(includingpaymentsmadebutnotprocessed)atthedateofstoppingtheaccountorthatparty’swithdrawal,willcontinueuntilfullrepaymentismade.

3.2 PaymentServices

(a) wemayprovideyouwithpaymentservicessuchasdirectcredits,automaticPayments,directdebits,BillPayments,fundtransfers,electroniccardtransactions,same-dayclearedpaymentsandinternationalmoneytransfers.

(b) accesstoyouraccountsmaybeprovidedbymeansoftelephone,mobileapplications,internet,facsimile,atms,eFtPoS,atBranchesorothermeans.

(c) wheresuchservicesareused,wewillinformyouof:

(i) thetermsandconditionsthatapplytotheoutwardpaymentservicesofferedandtheconsequencesofanybreachofthesetermsandconditions;

(ii) anyfeesorchargesfortheserviceandwewilladviseyouthattheremaybeachargeimposedbythereceivingbank;

(iii) thedeadlinebywhichyoumayalterorstopapayment;


(iv) ourrighttoalter,adjust,cancel,reverseorsuspendanypaymentinstructions;and

(v) yourrighttoalter,adjust,cancel,reverseorsuspendanypaymentinstructions,including,butnotlimitedto,yourrighttoadviseusdirectlytocancel,orstopdirectdebitauthorisations.

(d) Paymentsmaybedeclinedorreversedifthereareinsufficientfundsinyouraccountorforotherreasonsandyoumaybechargedfeesinrespectofsuchpayments.Fundspaidintoyouraccountmaynotbeavailableforyoutowithdrawuntilthepaymentiscleared.

(e) onrequest,wewillprovideyouwithinformationonwhenfundspaidintoyouraccountmaybecomeavailable.whenfundsbecomeavailablemaydependonanumberoffactorsincludingthetypeofpaymentused,jurisdiction,therulescoveringthepaymenttypeand/orwhetherthepaymentwasmadeonanon-businessdayorafterbankinghours.

(f) ifwepermityoutodrawagainstunclearedfunds,weareprovidingcreditandwillrequiretoberepaid(includinginterestandcharges)ifthepaymentsintoyouraccountarereversedout.

(g) itmaynotbepossibletostoporreverseelectronicpaymentsoncetheyhavebeenmade.Paymentsyouhavemadeinerrorcanonlyberecoveredfromtheaccounttheyhavebeenpaidtowiththeconsentoftheaccountholder.wewillco-operatewithyouoranotherbankinvolvedinthetransactiontotrytorecoverpaymentsmadeinerror.

(h) theremaybecircumstanceswherewecanreversepaymentspaidintoyouraccount,suchaswhenweortheotherbankinvolvedhavemadeanerror.

(i) wewilltakeandpromptlyprocessyour:

(i) instructiontocanceladirectdebitauthorityandwewillinstructyoutocontactthedirectdebitinitiatortoadvisethemthatyouhavecancelledyourdirectdebitauthority(otherwisethedirectdebitinitiatormightlodgeafurtherdirectdebitauthoritywithus);and

(ii) complaintthatadirectdebitwasunauthorisedorotherwiseirregular,butwemaysuggestthatyoualsocontactthedirectdebitinitiator.


4 cheques

4.1 cheques

(a) wewillinformyouoftheneedtokeepyourchequebooksafeatalltimesandthatyoushouldneversignchequesinadvance,orleaveanydetailsblankafterachequehasbeensigned.thelossofyourchequebook,anychequesoranyunauthorisedwithdrawalsfromyouraccountshouldbereportedtousimmediately.thepolicemayalsoneedtobenotified.

(b) wemayaskyouforidentificationwhenyoucashachequeandwewillexplainourreasonsfordoingsoonrequest.

(c) onrequest,informationwillalsobeavailabletoyouon:

(i) howlongitislikelytotaketoclearacheque(chequesdrawnonanoverseasbankwilltakelongertoclear);

(ii) whathappensifoneofyourchequesisdishonouredandwhathappensifachequeyoupayintoyouraccountisdishonoured;

(iii) thevariouswayschequesmaybecrossedtohelpprotectagainsttheftorfraud;

(iv) whathappenswhenachequeisaltered;

(v) howyoucanobtainaSpecialanswerforearlyclearanceofacheque;and

(vi) anyfeesandchargesforchequeprocessing,honoursanddishonours.


(d) onrequest,wewillinformyouhowtostopachequeandofanyfeesorchargesthatmayapply.wewillmakereasonableeffortstostopachequewhenyourequestustodosoandwewillalsoadviseyouofthecircumstanceswhenwemaynotbeabletocomplywithyourrequesttostopacheque(forexample,ifthechequehasalreadybeencashedorpresentedbywayofSpecialanswer).atthetimeyourequestastop,wemaynotbeabletoestablishwhetherornotthechequecanbestopped.

(e) ifachequeismisplacedinprocessing,allbanksinvolvedwilldotheirbesttohelpyouobtainareplacement.

(f) ifachequeisnotpresentedtousforpaymentwithinacertainperiodoftime(usuallysixmonthsfromthedatewrittenonthecheque)wemay:

(i) paythecheque;

(ii) declinetopaythecheque;or

(iii) makeanyfurtherenquiryweconsidernecessarybeforedecidingwhethertopayornottopaythecheque.

(g) theactofissuingpostdatedchequesisdiscouraged.however,ifyoudowriteachequewithafuturedate(postdated)anditispresentedtousbeforethatdatewemay:

(i) declinetopaythecheque;or

(ii) makeanyfurtherenquiryweconsidernecessarybeforedecidingwhetherornotthechequecanbepaid.

4.2 Bankcheques

(a) Likeanyothercheque,Bankchequesneedtoclearandthefundsmaynotbeavailabletoyouuntilthisprocessiscomplete.

(b) onrequest,wewillinformyouofthetermsandconditionsrelatingtoBankchequesandofthefeesforthisservice.

(c) therearesomelimitedcircumstancesinwhichwemayrefusepaymentonBankchequesthathavebeenissuedtocustomers.ingeneral,thiswouldonlybewhen:

(i) thechequeisfraudulent,forgedorcounterfeit,orhasbeenalteredsinceitwasissued;

(ii) thechequehasbeenreportedlostorstolen;


(iii) acourthasissuedanorderrestrainingpayment;

(iv) therehasnotbeenproperpaymentbythecustomerforthechequeandthatcustomerpresentsthechequeforpayment;or

(v) therehasnotbeenproperpaymentforthechequeandanyotherpersonpresentsthechequeforpaymentandthatpersonhasobtainedthechequebyfraud,orknowsthatapreviousownerobtainedthechequebyfraud,orknowsthatitwasoriginallyobtainedfromthebankwithoutproperpayment.

(d) wearenotobligedtostopaBankchequeissuedtoyouuponyourrequest.however,wemaydosoifthechequehasbeenlost,stolenorreturnedtousbyyou.Bankchequescannotbestoppedforexample,becauseyouhavechangedyourmindaboutatransactionafterhandingthechequeovertoanotherpersonoratransactionbetweenthepartieshasbrokendownthroughthesupplyoffaultygoodsandservices.


5 credit

5.1 Provisionofcredit

(a) whenyouseekcreditfromus,wewillprovideyouwithinformationaboutthevarioustypesofcreditFacilitiesavailabletoyou,sothatyoucanmakeaninformeddecision.

(b) whenconsideringyourapplicationforcreditwemaytakeintoaccountyourfinancialhistory,includinginformationfromcreditreferenceagencies.wewillobtainyourconsentbeforeaccessinginformationaboutyoufromthirdparties.

(c) wewillonlyprovidecredittoyouorincreaseyourcreditlimitwhentheinformationavailabletousleadsustobelieveyouwillbeabletomeetthetermsofthecreditFacility.wehavetherighttodecidenottoprovidecredittoyou.

(d) whenacreditFacilityisapprovedbyus,wewillcomplywithalllawsthatmayapply.wewillinformyou,andanypartyprovidingSecurity,ofyourobligationsincluding:

(i) theannualinterestrateandwhetheritmaybechangedduringtheperiodofthecreditFacility;

(ii) allfeesandcharges(includinggovernmentchargesandtaxes);

(iii) theperiodforwhichthecreditFacilityisavailable;

(iv) therepaymentterms,includinganytermsrelatingtoearlyrepayment


costs;

(v) anyinformationyouneedtosupplytousduringthetermofthecreditFacility;and

(vi) anyotherimportantinformationsuchasanyinsuranceandSecurityrequirements,whenpenaltyordefaultinterestischargedorconditionsyouwillneedtomeetbeforethecreditFacilityismadeavailabletoyou.

(e) ifyouhaveacreditFacilityinconjunctionwithothers,yourliabilityisJointandSeveral,unlessweagreeotherwise.

(f) ifyoudonotcomplywiththetermsofyourcreditFacility,wewillcontactyouatyourlastknownaddresstoadvisewhatstepswemaytake.ifthishappens,wemaydiscloseinformationaboutyourcontactdetailsanddebtstocreditreferenceagenciesand/orwemayaskanoutsidepartytocollectyourdebtonourbehalf.wewillgiveyounoticethatwearegoingtodothis,explainwhywearedisclosingtheinformationandtheeffectitmayhaveonyourabilitytoobtaincreditinthefuture.ifitislateragreedthattheinformationsuppliedwasnotcorrect,wewillmakesurethecreditreferenceagenciesaretoldofthis.

(g) itmaybethatwehavewrittenyourdebtoffforourinternalaccountingprocesses,howeverthisdoesnotmeanthatyouarenolongerliableforyourdebt.

(h) arecordofyourpriordebtmayremainontherecordsofthecreditreferenceagencyand/ordebtcollectionagencyevenafteryouhavepaidoffyourdebttous,butfornolongerthanthepermittedperiodallowedbylaw.

(i) wewillpromptlyinformyouifweusefundsyouhavedepositedwithustooffsetyourdebtswithus.

(j) thefollowingprincipleswillalsobeappliedbyus:

(i) wewillco-operatewithyouradviserstoexplainthenatureofanycreditFacilityandtoclarifyanythingduringtherelationship;

(ii) wewillagreewithyouattheoutsetofthecreditFacilitywhatsortofmonitoringinformationyoushouldsupplyandhowfrequently.ifcircumstanceschange,anynewmonitoringinformationrequiredwillbeadvisedtoyouinwriting;

(iii) wewillcommunicatewithyouwhenwehaveconcernsaboutyour


businessand/orourrelationshipwithyou,explainingthereasonsforourconcern;

(iv) ifyoufindyourselfinfinancialdifficulty,pleasecontactusimmediatelysowecanconsideryourparticularsituationandanyrecoveryproposition.YoushouldcontactusbeforeyoudefaultunderanycreditFacilityorassoonaspossiblethereafterasthesooneryoucontactus,thebetterpositionwewillbeintoassistyou;

(v) wemayaskforadditionalfinancialinformationand/orseekanindependentreview.ifwedoso,wewillexplainourrequirementsandthattheremaybecostsattached;

(vi) wherewehaverequestedthatyouobtainanindependentreviewofyourbusiness,wherepossiblewewillseektodiscusstheinformationprovidedwithyou(and,shouldyourequest,youradvisers)beforetakinganyaction;and

(vii) ifyouactingoodfaith,keepusinformedaboutdevelopments,keepyouragreementswithus,heedwhatyourownandanyindependentadviserssayandarepreparedtomakethechangesneededearlyenoughtopreservetheunderlyingbusiness,wewillnotnormallyseektheimmediateappointmentofareceiverorstartotherrecoveryproceedings.

5.2 GuarantorsandProvidersofotherSecurity

(a) wewillmakesurethatpeoplewhohaveofferedtogiveusaGuaranteeorotherSecurityaremadeawareoftheirobligationsandinformedthat:

(i) bygivingaGuaranteeorprovidingSecurityforyourdebt,theymaybecomeliableinsteadof,oraswellas,you;

(ii) theyshouldseekindependentlegalor,ifrequired,otherprofessionaladvicebeforegivinganyGuarantee;

(iii) theymayrequest,andwemay,butarenotrequiredto,agreethattheamountoftheirliabilityundertheGuaranteeorSecuritywillbelimited;

(iv) unlesswehaveagreedthattheamountoftheGuaranteeorSecurityislimited,andwhatthelimitoftheirliabilitywillbe,theirGuaranteeorSecuritywillbeunlimited;and

(v) wemayalsoclaimanyinterestowedandanycostsincurredinanyrecoveryprocess.


(b) therearecircumstanceswhereaGuaranteewillremaininforceaftertheguaranteeddebtisrepaid.Youshoulddiscussthiswithyourindependentlegalorprofessionaladvisor.

(c) GuarantorsandpeoplegivingSecuritymayusethecomplaintsproceduressetoutinclause1.3ofthiscode.


6 pinsandpasswords

6.1 PinsandPasswords

(a) ifPinsorPasswordsarenotissuedtoyouinpersonorarenotselectedbyyoupersonally,thePinsorPasswordswillbeissuedseparatelyfromanycardorotherproductorservicewithwhichtheyaretobeused.

(b) wherePinsandPasswordsareissuedtoyoupersonally,wemustbesatisfiedaboutyouridentitybeforeallowingcardstobeissuedorbeforeyouaregivenaccesstootherPinorPasswordoperatedservices.

(c) wewillinformyouofthekindsofPinsand/orPasswordsthatareunsuitable.YoumustnotusethesePinsorPasswords.unsuitablePinsorPasswordsinclude:

(i) birthdates,monthsoryears;

(ii) sequentialnumbers(e.g.3456);

(iii) numbercombinationsthatmaybeeasilyguessed(e.g.1111);

(iv) partsofyourtelephonenumber;

(v) partsofnumbersintheorderinwhichtheyareprintedonanyofyourcards;

(vi) othereasilyaccessiblepersonaldata(e.g.driverlicence,lockernumberorothernumberseasilyconnectedwithyou);and

(vii) family,petorstreetnames.


(d) wewillalsoinformyouthatyoumustsafeguardyourPinorPassword.Forinstance,youmust:

(i) memoriseyourPinorPassword;

(ii) notrecordyourPinorPasswordanywhere;

(iii) notdiscloseyourPinorPasswordtoanyone(includingthepolice,bankstafforyourfamily);

(iv) ensureanyauthorisedsignatoriesonyouraccountkeeptheirownPinsorPasswordssecure;

(v) takecaretoensureno-onecanseeyouenteryourPinatatmsorwhenusingeFtPoS;and

(vi) reportthedisclosureorpossibledisclosureofyourPinorPasswordassoonasyouareawareorsuspectyourPinorPasswordhasbeendisclosed.

(e) inaddition,wewillinformyouthatyoushouldconsiderusingadifferentPinorPasswordfordifferentcardsorequipment.

(f) wewillconformtointernationallyacceptedstandardsformethodsofgeneration,storageandterminalsecurityrelatingtoPinsandPasswords,toensureconfidentialityandsecurityforyourprotection.

(g) wewillencouragethirdpartiestomaximiseyourPinandPasswordsecurity.ForeFtPoSfacilitiesonourownpremises,wewillensurethatnewandreplacementequipmentisofatypethatmaximisesyourPinandPasswordsecurity.


7 cards

7.1 cards

Issuing Cards (a) wewillonlyprovideyouwithanewcard(otherthanreplacementorreissue

card)oninstructionfromthecustomer/sresponsiblefortheaccount.

(b) wherecardsareissuedtoyoupersonally,wemustbesatisfiedaboutyouridentitybeforeallowingcardstobeissued.

(c) whenwefirstissueyourcard,wewillprovideyouwiththetermsandconditionsrelatingtoyourcardandinformyouwhichofyouraccountsyourcardcanaccess.wewillalsoinformyouwhetherthecardissuedtoyouhasmorethanonefunctionandifso,whatthosefunctionsare.thetermsandconditionsandfunctionsmaychangefromtimetotime.

(d) wewilladviseyouofthecurrenttransactionlimitsthatapplyateFtPoSandatms.theselimitsmaychangefromtimetotimeandareavailableonrequest.

(e) wewilladviseyouofourfeesandchargesthatapplytoyourcard.

(f) additionalcardsmaybeissuedtoapersonnominatedbyyou,ifweagree.thisisusefulforillordisabledcustomers.Youwillbeliableforalltransactionsmadebytheadditionalcardholder/s.

(g) whenweissueyourcardwewillinformyouhowtobestsafeguardyourcard.Forexample,youmust:


(i) takecareofyourcard.donotleaveyourcardinanunattendedwallet,purseorvehicleoranywherewhereathiefcouldremoveacardwithoutbeingnoticed(particularlyinnightclubs,hotelsorrestaurants);

(ii) signyourcardassoonasyoureceiveit;

(iii) notgiveyourcardtoanyoneorletanyoneelseuseyourcard(includingthepolice,bankstafforyourfamily);

(iv) alwaysremembertotakeyourcardbackafterusingit;

(v) tellusifyouchangeyouraddress,soareplacementcardissenttothecorrectplace;and

(vi) reportthelossortheftofyourcardassoonasyouareawareofit.

Reporting Loss, Theft or Disputed Transactions (h) wewillinformyouofwhatproceduresyoumustusetoreporttheloss,theft

orunauthoriseduseofyourcard,PinorPasswordbothinnewZealandorfromoverseas.

(i) wewillmakeavailabletoyoutelephonenumbersthatyoucanusetoreporttheloss,theftorunauthoriseduseofyourcard,PinorPasswordassoonasyouareawarethatanysucheventhasoccurred.

(j) wewillassistyouifyouencounteranydifficultieswithanotherparticipatingbank’satmandcannotresolvethemwiththeparticipatingbankthatownstheatm.

Cards(k) Youshouldbeawareofthefollowingmatterswhenrequestingacard,and

followingtheissueofacard:

(i) yourcardtermsandconditionswilladviseyouthattherearerisksinvolvedifyougiveyourcarddetailsandauthorisetransactionsbeforeyoureceivegoodsorservices.Youshouldconsiderthesecurityandstandingofthecompanyorentityyouaredoingbusinesswith(includingwhenpurchasinggoodsorservicesnonface-to-face);

(ii) youmayhavealimitedtimetodisputeatransaction.wewillinformyouofthistimeinourcardtermsandconditions.Failuretoreporttheincorrect,invalidorunauthorisedtransactionwithinthattimewillmeanthatwecannotreversethetransactionandyouwillhavetopayforit.therearelimitedcircumstancesunderwhichwecan


reverseacreditcardtransaction,particularlywheretherulesofacreditcardcompanyapply.Forexample,wecannotreverseacreditcardtransactionwherethereisadisputewiththemerchantastothequalityofthegoodsandservices,oryouhavechangedyourmindaboutthequalityofthegoodsandservicesoranerrorhasbeenmadebyyouorthemerchantonadebitcardtransaction;and

(iii) ifyounotifyusofanincorrect,invalidorunauthorisedtransactionchargedtoyourcreditcardaccountwithinanyprescribedtimelimit,wewillinvestigatethematter.ifthetransactionisfoundtobeincorrect,invalidorunauthorisedwewillreversethetransaction(thisissometimescalledachargeback).

7.2 Liability

(a) Youwillnotbeliableforlossesbeforeyoureceiveyourcardor,ifapplicable,yourPinandPasswordprovidedyouhavenotifiedusofyourcurrentaddress.inanydisputeaboutreceiptofacard,PinorPasswordthatisnotissuedtoyouinperson,wewillnotrelyonproofofdespatchtoyourcorrectaddressasproofthatthecard,PinorPasswordwasreceived.

(b) wewillfullyinformyouinourcardtermsandconditionswhatliabilityyouhaveinrelationtothelossortheftofyourcardordisclosureofyourPinorPassword.

(c) onceyouhaveadvisedusthatyourcardhasbeenlostorstolen,oryourPinorPassworddisclosed,eitherinnewZealandoroverseas,youwillnotberesponsibleforanyunauthoriseduseofyourcardafterthattime.thisprotectionwillnotapplyifyouhaveactedfraudulentlyornegligently.

(d) Youwillbeliabletopaynomorethan$50ofanylossthatoccursbeforeyounotifyus.however,this$50limitwillnotapplyif:

(i) youhaveactedfraudulentlyornegligently;or

(ii) youhavecontributedtotheunauthoriseduseofyourcard,forexample(butnotlimitedto)breachingourtermsandconditionsby:

• selectingunsuitablePINsorPasswords(seeclauses6.1(c)and(d)ofthisCode);

• failingtoreasonablysafeguardyourCard;

• keepingwrittenrecordsofPINsorPasswords;


• partingwithCardand/ordisclosingPINsorPasswordstoanyotherperson;

• failingtotakeallreasonablestepstopreventdisclosuretoanypersonwhenenteringPINsorPasswords;or

• unreasonablydelayingnotificationtousofthelossortheftofCard,oroftheactualorpossibledisclosuretoanyotherpersonofPINsorPasswords.

(e) intheeventthatclause7.2(d)applies,yourmaximumliabilitywillbethelesserof:

(i) theactuallossattimeofnotification;or

(ii) themaximumamountthatyouwouldhavebeenentitledtowithdrawfromyouraccountbetweenthetimeyourcardwaslost/stolenandthetimeyounotifiedus.

(f) ifyourcardgivesyouaccesstoanaccountwithacreditFacility(forexample,acreditcardorarevolvingcreditFacility),failuretolookafteryourcardoranyassociatedPincouldresultinasubstantiallossforwhichyoucouldbeheldresponsible.

(g) Youarenotliableforlosscausedby:

(i) fraudulentornegligentconductbyemployeesoragentsofbanksorpartiesinvolvedintheprovisionofelectronicbankingservices;

(ii) faultsthatoccurinmachines,cardsorsystemsused,unlessthefaultsareobviousoradvisedbymessageornoticeondisplay;

(iii) unauthorisedtransactionsbeforeyouhavereceivedyourcards,PinorPassword;or

(iv) anyotherunauthorisedtransactionwhereitisclearthatyoucouldnothavecontributedtotheloss.

7.3 merchantcardServices

(a) ouragreementswithourmerchantsfortheprocessingofcardtransactionswillhavetheirowntermsandconditionsapplyingtouse,securityandliability.thesemerchantserviceagreementswillalsoincludeinformationonthesettlementandreconciliationofyourmerchantfacility.thesetermsandconditionsapplyinadditiontotheminimumstandardsofthecode.


(b) wewillalsoinformourmerchantsoftheassociatedrisksofacceptingcardtransactionsespeciallythosewherethecardisnotpresent.

(c) wewillobtainamerchant’sexplicitconsentbeforechangingtheiracquiringBank.

(d) wewillprovidearobust,encryptedandefficienteFtPoSpaymentsystem.

(e) merchantsarerequiredtosafeguardyourcarddetailssothatnounauthorisedpersongainsaccesstothesedetails.ifmerchantsfailtokeepsuchdetailssecure,theymaybeliableforlossesassociatedwithmisuseofthecardholderinformation.


8 internetbanking

8.1 GeneralPrinciples

Our Systems(a) wewilltakeappropriatemeasurestoensurethatourinternetBanking

systemsandtechnologyaresecureandareregularlyreviewedandupdatedforthispurpose.

(b) wewillneveraskyouinpersonorinwriting(includingbyemail)toconfirmyourinternetBankingsecurityinformationortodiscloseyourPasswordorinternetBankingsecurityinformation.

(c) ifyouincuradirectlossthatisduetoasecuritybreachofourinternetBankingsystemasaresultofourfailuretotakereasonablecareandisnotcausedorcontributedtobyyou,wewillreimburseyouforthatloss.

(d) wewillexercisereasonablecareandskillinprovidingyouwithinternetBankingservices.however,subjecttoourobligationsundertheconsumerGuaranteesact1993wewillnotberesponsibleifyouincuraloss,whichiscausedthroughcircumstancesbeyondourreasonablecontrol.inparticular,wecannotberesponsibleforalosscausedthroughcircumstancesbeyondourreasonablecontrolbecauseof:

(i) yourinabilitytoaccessinternetBanking,oranyotherapplicationassociatedorreliantoninternetBanking,atanytime,oranyfailureordelayinprovidingaserviceviatheinternet;or

(ii) amalfunctionofanyequipment(includingtelecommunications


equipment)whichsupportsourinternetBankingservice.

(e) Yourcomputerordeviceisnotpartofoursystemthereforewecannotcontrol,andarenotresponsiblefor,itssecurity.however,wewillinformyou,primarilythroughourwebsite,howtobestsafeguardyouronlineinformationandthestepsyoushouldtaketoprotectyourselfandyourowncomputerfromfraud,scamsorunauthorisedtransactions.

(f) inadditiontonon-technicaladvice(suchasnotleavingyourcomputer/deviceunattendedwhenyouareloggedontointernetBankingornotusingsharedcomputerslikethoseininternetcaféstoaccessinternetBanking),wewillalsohaveonourwebsiteavailableinformationandadviceonthebenefitsofinstallingandmaintainingprotection,inrespectof,forexample:

(i) anti-virussoftware;

(ii) firewalls;

(iii) anti-spyware;and

(iv) operatingsystemsecurityupdates.

(g) wewillinformyouofwhatproceduresyoumustusetoreportunauthorisedaccesstoyourinformation,accountsordisputedtransactionsusingyourinternetBankingserviceandmakeavailabletoyoucontactinformationsoyoucanreportthisactivityassoonasyouareawareofit.

(h) whenwefirstgiveyouaccesstoourinternetBankingserviceswewilltellyouwheretofindtheinformationyouneedtosafeguardyouronlineinformationandtoprotectyourselfandyourowncomputerfromfraud,scamsorunauthorisedtransactions.thisinformationwillbeupdatedfromtimetotime.

(i) wemayalsowarnyouagainstusinganaccountaggregationsystemorsoftwarewhichisnotprovidedbyusthatletsyouseeallyouronlineaccountsfromdifferentwebsitesontheonewebsiteandrequiresyoutoinputordiscloseyourcustomeridentification,Passwordoranyothersecurityinformation.

(j) whenyouhaveaccesstointernetBankingserviceswewillalsoinformyouoftheapplicabletermsandconditionsrelatingtotheuseofinternetBankingservices.

(k) wewilladviseyouofthecurrenttransactionlimitsthatapplytoourinternetBankingservices.theselimitsmaychangefromtimetotimeandareavailableuponrequest.


Your ID and Passwords and other Authentication / Security Information(l) wewillprovideyouwithregularlyupdatedinformationon:

(i) howtoaccessinternetBankingservices,includingdetailsaboutyourcustomeridentification,selectionofappropriatePasswordsandtheavailabilityofadditionalauthenticationorsecurityoptions;

(ii) maintainingthesecurityofyourcustomeridentification,Passwordsandanyothersecurityinformation(which,whereapplicable,includesanysecondfactorauthenticationsecuritydevice);

(iii) yourresponsibilitiesforprotectingyourPasswordandanyothersecurityinformation,including(butnotlimitedto):

• neverdisclosingyourPasswordandanyothersecurityinformationtoanyoneelse,includingbankstaff,policeorfamilymembers;

• notrecordingyourPasswordorothersecurityinformationincludingkeepingyourPasswordonafileoronyourcomputerorotherdevice(includinganyPasswordsavingfacilitythatisnotacceptabletoyourbank);

• notcreatingorusingaPasswordandanyothersecurityinformationthatcanbeeasilyfoundout,orrelatestopersonalinformationaboutyourself(e.g.yourbirthday,family,streetorpetnames)orincludesanyobviousorsequentialnumberssuchas54321,orrelatednumberssuchas22222;

• creatingorusingaPasswordandanyothersecurityinformationthatisuniqueand/orisnotthesameasorsimilartoPasswordsandanyothersecurityinformationusedforotherservicesyouuse;

• changingyourPasswordandanyothersecurityinformationimmediatelyifanyoneelsedoesormayknowit;

• regularlychangingyourPasswordforincreasedsecurity,andhowtodothis;

• takingreasonablecarewhenaccessingyourInternetBankingservicetoensurethatyourPasswordorothersecurityinformationisnotseenbyordisclosedtoanyoneelse;

• notopeningattachmentsorrunningsoftwarefromuntrustedorunknownsources;and

• notrespondingtoanyrequestsforyourPasswordorsecurityinformation.


Your Liability / Responsibility As a guiding principle of this section, we will continue the practice of reimbursing all customers that are genuine victims of Internet Banking fraud.

(m) YouwillnotbeliableforlossescausedbyunauthorisedtransactionsbeforeyouareabletoaccessinternetBankingforthefirsttimeorduringanyperiodwepreventyoufromaccessinginternetBanking,including,ifapplicable,beforeyoureceiveyourcustomeridentification,Passwordoranyothersecurityinformationprovidedyouhavenotifiedusofyourcurrentaddress.inanydisputeaboutreceiptofcustomeridentification,Passwordsorsecurityinformationthatarenotissuedtoyouinperson,wewillnotrelyonproofofdespatchtoyourcorrectaddressasproofthatthecustomeridentification,Passwordorothersecurityinformationoradditionalauthenticationwasreceived.

(n) ifyouadviseusaspromptlyasisreasonablypossiblethatyourcustomeridentification,PasswordoranyothersecurityinformationisormaybeknowntoanotherpersonortherehasbeenanunauthorisedaccesstoyourinternetBankinginformationoraccountsyouwillnotbeheldresponsibleforanyloss,unlessyouhaveactedfraudulentlyornegligentlyorhavecontributedtosuchdisclosureorunauthorisedaccessbynotfollowingthesecurityinformationandadviceinthiscodeandasprovidedbyusonourwebsitesandourtermsandconditions.

(o) YoumaybeliableifanunauthorisedtransactionoccursafteryouhavereceivedthemeanstoaccessinternetBanking,ifforexample,(butnotlimitedto)youhavebreachedourtermsandconditionsbydoingthefollowing:

(i) youhaveaPinorPasswordofatypeyouhavebeenwarnednottochoose;

(ii) youhavevoluntarilyornegligentlydisclosedyourPin,Passwordorothersecurityinformationtoanyoneelse;

(iii) youhavekeptawrittenorelectronicrecordofthePin,Passwordorothermeansofaccessorfailedtostoresameinasecurefacilityacceptabletoyourbank;

(iv) youhaveusedacomputerordevicethatyouknoworbelievedoesnothaveprotectivesoftwareandoperatingsysteminstalledandreasonablyuptodate;

(v) youhavenottakenreasonablestepstoensurethattheprotectivesystemsinstalledonyourcomputerordevicesuchasvirusscanning,firewall,anti-spyware,operatingsystemandanti-spamsoftwareare


continuedtobeupdatedwithinareasonableperiodoftime;

(vi) youhavenottakenreasonablecaretosafeguardanyotherdevicethatisusedtoaccessyourinternetBankingservice;

(vii) youhavenotadvisedusaspromptlyasisreasonablypossiblethatyouareawarethatsomeoneotherthanyouhasaccessedyourinternetBankingserviceoranunauthorisedtransactionhasoccurred;

(viii) youhaveleftyourcomputerunattendedwhenloggedontotheinternetBankingservice;or

(ix) youhavenotfollowedourreasonablesecuritywarningsabouttheprocessesandsafeguardstofollowwhenusinginternetBanking.

(p) intheeventthatclause8.1(o)applies,yourmaximumliabilitywillbethelesserof:

(i) theactuallossatthetimeofnotificationtous;or

(ii) thebalancethatwouldhavebeenavailableforwithdrawalfromyouraccount(s),includinganycreditFacility,betweenthetimeanyunauthorisedaccesswasmadeandthetimeyounotifiedus.

(q) ifyouhaveusedorallowedyouraccounttobeusedtoprocessfraudulentorunauthorisedtransactionsyoumaybeliableforsomeorallofthelosssufferedbythepartywhohasbeendefrauded,regardlessofthebalanceavailableinyouraccount.

Smart Phones and Mobile Applications(r) wewilltakeappropriatemeasurestoensurethatoursmartphoneand

mobileapplicationsaresecureandregularlyreviewedandupdatedforthispurpose.

(s) inadditiontoyourobligationswhenusinginternetBanking,whenusingasmartphone,mobileapplicationoranyotherformofsocialmediatoaccessbankingservicesyouwillneedtotakecaretoprotectyourdevice,by:

(i) notleavingyourdeviceunattendedandloggedintoamobilebankingservice;

(ii) lockingyourdeviceortakingotherstepstostopunauthoriseduseofyourmobilebankingservice;and

(iii) notifyingusassoonaspracticableifyourdeviceislostorstolenorifyouchangeyourdevice.


9 otherservices

9.1 ForeignexchangeServices

(a) wewillprovideyouwithdetailsofexchangeratesandourcommissionchargesor,ifthisisnotpossibleatthetime,thebasisonwhichthetransactionwillbecompleted.

(b) wewillprovideyouwithanindicationofwhenmoneysentoverseasbyinternationalmoneytransferonyourinstructionswouldnormallybeavailableforcollection.wewillalsoinformyouthatthepersonreceivingthefundsmayhavetopayafeetotheoverseasbank.

(c) Beforecompletinganycontractforforwardforeigncurrencytransactionsforacustomer,wewillinformyouofanyfeesandrisksassociatedwiththecancellationof,orvariationto,suchcontract.

(d) whenweareactingonyourbehalftocollecttheproceedsofforeignchequesorforexportorimporttransactions,wewillinformyouonrequestofthelikelycostsofthetransaction(includinganyoverseasbankcosts,ifknown),thelikelytimeforthecollectiontobepaidandtheobligationsofthepartiesunderinternationalchamberofcommercerules.


9.2 otherFinancialServices

(a) wemayprovideorofferotherproductsandservicesincludingmanagedfunds,insurance,Safecustodyandsecuritiestradingfacilities.wewilladviseyouthattheremayberisksininvestinginorpurchasingsomeoftheseproductsorservices.

(b) Someoftheseproductsandservicesmaybesuppliedbythirdpartiesandsoldbyusasanagent.thecontract,includingitstermsandconditions,forsuchproductsorservicesmaybebetweenyouandthethirdpartysupplierandwemayreceivecommissionforsuchsales.

(c) Beforeyoupurchasesuchproductsandservices(otherthaninsurance),wewilladviseyou(inadditiontoanydisclosurerequiredbylaw)ofthefollowinginformation,soyoucanmakeaninformeddecisionastowhichproductsorservicesmeetyourneeds:

(i) thetermsandconditionsoftheproductorservice;

(ii) anyfeesandchargesapplicabletotheproductorserviceandhowtheywillbecharged;and

(iii) wheneitherofusmayalterorendthearrangementandthelikelyconsequencesofthis.

(d) Forinsuranceproductsandservices,youwillbeadvisedofthefollowinginformationatthetimetheinsureracceptstheapplication(inadditiontoanydisclosurerequiredbylaw),soyoucanmakeaninformeddecisionastowhichinsuranceproductsorservicesmeetyourneeds:

(i) thetermsandconditionsoftheproductorservice;

(ii) anyfees,chargesandpremiumsapplicabletotheproductorservice;

(iii) wheneithertheinsureroryoumayalterorendthearrangementandthelikelyconsequencesofthis;and

(iv) whetherafreelookperiodisofferedandifso,howlongfor.whenafreelookperiodisoffered,itshallbeaminimumoffivebusinessdaysforasinglepremiumpolicyandtenbusinessdaysforperiodicpremiumsortheminimumrequiredbylaw,commencingfromthelaterofconfirmationoftheproposalbyyouorreceiptbyyouofthepolicydescriptionandstatementofpolicyholderrights.

(e) onrequest,wewillhelpyouestablishyourneedsbeforeyoudecideonaproductorservice.


10 statementsandaccountinformation

10.1 Statementsandaccountinformation

(a) unlessyourequestotherwise,atleasteverysixmonths,wewillmakeavailabletoyourecordsrelatingtoyourtransactionalaccounts.thesewillbeinprintedorelectronicformasagreedwithyou.theywillbearecordofalltransactionssincethepreviousstatement.ifyouhaveapassbookaccount,thiswillbetheonlyrecordoftransactionsyoureceive.ifyourequirefurtherrecords,theremaybeacost.

(b) Foraccountswherestatementsareprovided,otherthanthosedescribedinclause10.1(e)ofthiscode,thosestatementswillshow:

(i) foreachtransactionsincethepreviousstatement:

• theamountofthetransaction;

• thedatethetransactionwaspaidintoorwithdrawnfromtheaccount;

• thechequenumberofanychequespaidoutofyouraccount;and

• forCardtransactions,AutomaticPayments,DirectCredits,DirectDebitsandotherpayments,referencetothepartywhoismakingorreceivingthepayment(ifsuchinformationhasbeenmadeavailable).

(ii) anyfeesorchargesrelatingtotheoperationoftheaccount;and


(iii) thecontactdetailsformakingenquiriesorreportingerrorsinthestatementassoonasyoufindthem.

(c) wewillinformyouthatassoonasyoureceiveyourstatement,youshouldcheckallentriesandreporttousanyapparenterrors,discrepanciesortransactionsyouhavenotauthorisedassoonaspossible.

(d) wewillmakesurethattheelectronicfundstransfersystemsweuserecordsufficientinformationontransactionssotheycanbetraced,checkedandverified.

(e) Someproducts(forexample,termdeposits,loans,superannuation,unittrustsandlifeinsurance)mayhavespecificinformationreportingrequirements,withwhichwewillcomply.


11appendix

11.1 Glossary

thisglossaryexplainsthemeaningofwordsusedinthiscodeandothercommonbankingterms.theyarenotpreciselegalortechnicaldefinitions.

Acquiring Bank thebankwhichprovidescardpaymentservicestoamerchant.

Automatic Payments arrangementsbywhichcustomersinstructtheirbankstomakeregularpaymentsforafixedsumfromtheiraccountintoanotherbankaccount.

ATMs (Automatic Teller Machines or Cash or Money Machines) electronicterminalsthatallowcustomerstousecardsandPinstoaccesstheiraccounts,withdrawcash,makedeposits,transferfundsoraccessotherservices.

Bank Cheques achequethatispurchasedfrom,anddrawnontheaccountofabank.

Bill Payments aone-offtransferoffundsfromthepayingcustomer’saccounttoapre-establishedpayee’saccount,whichisinitiatedbythepayingcustomer.thepayingcustomerdecidesthepaymentamountandthepaymentdateforeachpayment


andadvisesthepayingbank,viatheirbank’stelephonebankingservice,internetBankingserviceorothermeans.

Branches atermforacustomercontactsitewhichthecustomercanphysicallyvisitandcarryouttheirgeneralbankingrequirements.theymayalsobecalled“representativeoffices”,“pods”,“outlets”,“customerservicecentres”,etc.

Cardageneraltermforanycardthatcanbeusedtopayforgoodsandservices,ortoaccessatmmachinesorotherelectronicbankingservicessuchaseFtPoS.examplesare:

(a) cashcards-cardsusedtoobtaincashfromatms.

(b) chargecards-similartocreditcards.theyallowcustomerstopayforpurchasesand,insomecases,toobtaincashadvances.whenthemonthlystatementisreceived,thebalancemustbepaidinfull.

(c) creditcards-cardsthatallowcustomerstobuyoncreditandtoobtaincashadvances.customersreceivemonthlystatementsandmaypaythebalanceinfullorinpart,thoughthereisusuallyaspecifiedminimumpayment.

(d) debitcards-cardsthatcanbeusedtoaccessyouraccountstoobtaincashormakeapaymentatapointofsale.customers’accountsaredebitedelectronicallyforthesetransactions.

(e) multi-Functioncards-cardsthatcombinemorethanoneofthesefunctions.

(f) Pre-paidcards-cardswhicharepre-loadedwithfunds,andnotlinkedtoyouraccounts,thatcanbeusedtopayforgoodsandservicesorwhichcanbeaccessedviaatmmachines.

Chargebacksthereversalbythebankoftransactionsmadetocustomers’creditcardaccountswhicharefoundtobe:

(a) incorrect,invalidorunauthorisedcharges,and

(b) notifiedtothebankwithinthereasonabletimelimit.


Commissions chargesforprovidingservices;forexample,commissionischargedbythebankwhencustomersbuyorsellforeignexchange.

Credit anarrangementbywhichthebankprovidesfundstoacustomerinexchangeforapromisetorepayatalaterdate,alongwithanyinterestandchargespayable.

Credit Facilities thesemaytakeseveralforms;forexample,overdrafts,loanssecuredagainstagivenSecurityorunsecuredloans.

Credit Reference Agenciescompaniesthatholdrecordsofacustomer’scredithistory.

Crossed (Cheque) waysofmarkingchequestolimittheeasewithwhichtheycanbeexchangedforcash.Limitedprotectionwillbegivenbyparallellinesacrossthefrontofthecheque.thiscrossingprovidesonlyaverylimitedprotectionifthechequeislostorstolen;essentiallyitmeansonlythatthechequeshouldnotbecashedbutshouldbepaidintoabankaccount.thisprotectioncanbeimprovedbywritingthefollowingwordsbetweenthetransverselines:

(a) accountpayeeonly;or

(b) nottransferable.

Customersasusedinthiscode,“customers”meansallcustomersofaparticipatingbankotherthanwholesalecustomers(generallyreferredtoas“you”or“your”inthiscode).

Debt Collection Agenciescompanieswhosebusinessistocollectdebtsfrompeoplewhohavefailedtomeetanyobligationtopay.

Default Failuretorepaycreditortomeetotherconditionsthatwerepromisedoragreedto.


Direct Creditsarrangementsbywhichpayments,suchassalaries,aredirectlycreditedtocustomers’bankaccounts.

Direct Debit Initiatorthepartywhoinitiatesadirectdebitunderadirectdebitsystemfromacustomer’saccountatthecustomer’sbank.

Direct Debitsarrangementsbywhichacustomerauthorisesthebanktomakepaymentsdirectlyfromtheiraccountstoathirdpartywhohasinitiatedthearrangement.theamountscanbefixedorvariable.ifvariable,thedirectdebitinitiatormustgivepriornoticetothecustomerofvariations.

Disclosure Statement disclosuretocustomersoffinancialandotherinformationbybanksasrequiredbythereserveBankofnewZealandact1989.

Dishonoured Cheques chequesthatarepresentedforpaymentandarenotpaid,leavingthepersontowhomthechequeispayablewithoutthemoney.

Dispute Resolution SchemeaschemewhichhasbeenapprovedundertheFinancialServiceProviders(registrationanddisputeresolution)act2008.

EFTPOS (Electronic Funds Transfer at Point of Sale) amethodofpaymentbywhichcustomerscanusecardstopayelectronicallyforgoodsorservicesortoobtaincash.

Exchange Rates theratesatwhichyourbankwillbuyorsellforeigncurrency.

Guarantees Legalarrangementsbywhichsomeone(theguarantor)promisestorepaythedebtsofacustomerifthatcustomerdefaultsinmakingrepayment.


Inform asusedinthiscode,“inform”referstoanywritten(inelectronicorpaperform)ororalcommunicationsfrombankstocustomers,whetherdeliveredinpersonornot,aboutanybankproductsorservices.

Internet Banking means useofacomputerordevicetoconnectyoutoourelectronicbankingchannelsviatheinternetandtocarryoutarangeoftransactionsandobtaininformationaboutyouraccount.

Joint and Several wheretwoormorepartiesenterintoanobligationjointlyandseverally,theobligationmaybeenforcedfullyagainstalloranyofthem.

Merchants anysuppliersofgoodsorserviceswhoacceptpaymentsbycard.

Overdrafts thewithdrawaloffundsfrombankaccounts,toagreatertotalamountthanacustomer’screditbalance,withorwithoutpriorarrangement.

Passwords aconfidentialcombinationoflettersand/ornumbersusedbycustomerstoestablishtheirrighttoaccesstotheiraccounts.

PINs (Personal Identification Numbers) confidentialnumbersusedbycustomerstoaccesstheiraccountsviaatms,eFtPoSfacilities,theinternetandotherelectronicbankingservicessuchastelephonebanking.

Reasonable Accommodationmeansnecessaryandappropriatemodificationandadjustmentsnotimposingadisproportionateorundueburden,whereneededinaparticularcase,toensuretopersonswithdisabilitiestheenjoymentorexerciseonanequalbasiswithotherswhouseourservices.(thisdefinitionhasbeenadaptedfromarticle2,draftconventionontherightsofPersonswithdisabilities,eighthsession,newYork,14-25august2006).


Safe Custody aserviceofferedbysomebanksbywhichvaluableitemssuchashousetitles,willsorsharecertificatescanbedepositedinabankforsafe-keeping,usuallysubjecttoafee.

Security thepromisingofassets(suchastitlestoproperty,lifepoliciesandshares)tobanksassupportforcreditFacilitiesgrantedtocustomers.amortgagedocumentisacommontypeofSecurity,inwhichpropertyisusedasSecurityforaloan.ifthecreditFacilitiesarenotrepaid,thebank’spositionis“secured”,whichmeansthatitcanselltheassetstomeettheoutstandingdebts.

Special Answers customerrequestsforpromptclearanceofcheques,usuallysubjecttoafee.

Stop Payments atermcommonlyusedtodescribethestoppingofachequeorsomeothertypesofpayments.

Term Deposits (Investments) acontractbetweenacustomerandabank,wherebythecustomerlodgesadepositwiththebankforamutuallyagreedperiodoftime.Bankspayasetrateofinterestonthesedeposits.ifthecustomerwishestoaccessfundsbeforethematuritydate,theremaybeafeechargedand/orinterestpenaltyforbreakingthiscontract.

Third-Party Security Securityprovidedbyapersonwhoisnottheborrower.

Travellers Cheques Speciallyprintedchequesavailableforcustomerstopurchase,usuallyforuseoverseas,toobtaincashandpayforgoodsorservices.travellerschequesareavailableinfixedamountsinanumberofmajorworldcurrencies.Securityismaintainedbysigningthechequeatthetimeofreceiptandaddingasecondmatchingsignatureonpresentationforpayment.acommissionisgenerallypayableonthepurchaseofthesecheques.


Unauthorised Transactions itemsrecordedonanaccountthathavebeenmadewithoutthecustomer’sauthority.

Wholesale Customerswholesalecustomershasthesamemeaningas“wholesaleclients”asdefinedinsection5coftheFinancialadvisersact2008.

Withholding Tax (Resident (RWT) and Non-Resident (NRWT)) and Approved Issuer Levy Governmenttaxesoninterestincomethatbanksandotherinterestpayersmustdeductfrominterestpaymentstoresidentsandnon-residents.

11.2 PrincipalLegislation

Principal Statutes Governing Banking in New Zealand anti-moneyLaunderingandcounteringFinancingofterrorismact2009

Billsofexchangeact1908

chequesact1960

companiesact1993

consumerGuaranteesact1993(doesnotapplytobusinesscustomers)

creditcontractsact1981

creditcontractsandconsumerFinanceact2003

criminalrecords(cleanSlate)act2004

electronictransactionsact2002

Fairtradingact1986

Financialadvisersact2008

FinancialServiceProviders(registrationanddisputeresolution)act2008

Financialtransactionsreportingact1996

humanrightsact1993


investmentadvisers(disclosure)act1996

Lawyersandconveyancersact2006

minors’contractsact1969

newZealandBillofrightsact1990

Partnershipact1908

PersonalPropertySecuritiesact1999

Privacyact1993

Proceedsofcrimeact1991

PropertyLawact2007

ProtectionofPersonalandPropertyrightsact1988

reserveBankofnewZealandact1989

Securitiesact1978

Securitiesmarketsact1988

terrorismSuppressionact2002

unclaimedmoneyact1971

Statutes Providing Access for Third Parties to Customer Information Held by Banks administrationact1969

childSupportact1991

commissionsofinquiryact1908

companiesact1993

criminalProceeds(recovery)act2009

customsandexciseact1996

Fairtradingact1986

Fisheriesact1996

Financialtransactionsreportingact1996

Gamingdutiesact1971


GoodsandServicestaxact1985

healthanddisabilityServices(Safety)act2001

housingrestructuringandtenancymattersact1992

incometaxact2004

incorporatedSocietiesact1908

industrialandProvidentSocietiesact1908

insolvencyact1967

LawPractitionersact1982

mutualassistanceincriminalmattersact1992

Proceedsofcrimeact1991

Privacyact1993

PublicFinanceact1989

reserveBankofnewZealandact1989

Securitiesact1978

SeriousFraudofficeact1990

SocialSecurityact1964

StudentLoanSchemeact1992

SummaryProceedingsact1957

taxadministrationact1994

terrorismSuppressionact2002


11.3 ParticipatingBanks

Members of the New Zealand Bankers’ AssociationanZnationalBankLimited(operatingasanZBankandthenationalBankofnewZealand)

aSBBankLimited

BankofnewZealand

theBankoftokyo-mitsubishiuFJ,Ltd.

citibank,n.a.

theco-operativeBankLimited

thehongkongandShanghaiBankingcorporationLimited

JPmorganchaseBank,n.a.

kiwibankLimited

rabobanknewZealandLimited

SouthlandBuildingSociety

tSBBankLimited

westpacnewZealandLimited

Some subsidiaries and related companies of the above member banks are excluded from coverage under this Code. You may obtain a full list of such subsidiaries from the Office of the Banking Ombudsman.

http://www.asb.co.nz

http://www.bnz.co.nz

http://www.citigroup.com

http://www.hsbc.co.nz

http://www.kiwibank.co.nz

http://www.tsb.co.nz

http://www.westpac.co.nz


index

Aaccess to services 12

accounts see also cardsclosureof11identificationrequirements10 moving11newproductsorservices11 opening10rightsandobligations10 statements35suspensionof11

acquiring bankconsenttochange27 definitionof37

advertising material 7, 9, 11

approved issuer levy 9, 43

ATMsaccessto12 definitionof37

automatic payments accessto12 definitionof37

Bbank cheques

definitionof37termsandconditions15

bank communications 8

bank information, disclosure of 9, 34

bank statements 35

banking legislation 43

Banking Ombudsman Scheme 6

banking terms, glossary of 37-43

bill paymentsaccessto12 definitionof37

branches accessto12 definitionof38

business account, suspension of 11

Ccards see also credit cards

additionalcards23 closureofaccount11 definitionof38 identificationrequirements23 issueof23 liabilityforloss25 reportingloss,theftorunauthoriseduse24 security23 termsandconditions23 transactionlimits23

cash cards, definition of 38

charge cards, definition of 38

chargebacks definitionof38 process24

cheques altered14 bankcheques15 clearance14 closureofaccount11


crossed14, 39 dishonoured 14, 40 feesandcharges14 misplacedinprocessing15 obtainingspecialanswerforearlyclearance14 postdated15security14 stopping15

clearance of funds cheques14 paymentservices12

Code of Banking Practice 2012 availability4 dateeffective3 participatingbanks46 purpose 4 reviewof3

commissions, definition of 39

communications 8

company account, suspension of 11

complaints procedures 6

confidentiality 7

credit, definition of 39

credit cards see also cards definitionof38 disputedtransactions24 informationaboutrisks24 provisionof23 reportingloss,theftorunauthoriseduse24 reversaloftransactions24

credit facilities approvalof17 debtcollection18 definitionof39 disclosurestocreditreferenceagencies18 feesandcharges17 independentreview19

informationabout17 jointliability18 legalcompliance17 termsandconditions17

credit reference agencies definitionof39 disclosuresto18 informationfrom17

customer information accuracy7 privacy7 statutesauthorisingdisclosure7, 44

Ddebit cards, definition of 38

debt collection 18

debt collection agencies, definition of 39

default 19,39

deposits, disclosures 9

direct credits accessto12 definitionof40

direct debit initiator, definition of 40

direct debits accessto12 definitionof40

disabled customers 5, 23

disclosure bankinformation9 customercreditinformation18 customerinformation8, 44 Pinsandpasswords22

disclosure statement 9, 40

dispute resolution scheme 5,40


EEFTPOS

accessto12 definitionof40

elderly customers 5

electronic card transactions accessto12

exchange rates definitionof40 provisionofinformation33

Ffees and charges

account9 bankcheques15 cheques14 commissions,definitionof39 creditfacilities17 disclosureof9 foreignexchangeservices33 noticeofvariation8 paymentservices12

foreign exchange services 33

forward foreign currency transactions 33

fund transfers 12

Gglossary of terms 37-43

government charges 9

guarantees, definition of 40

guarantors 19

Iidentification requirements

issueofcards23

openinganaccount10 purposeof7

incorporated society account, suspension of 11

independent advisers, co-operation with 5

inform, definition of 41

insurance services 34

interest rate changes, notice of 8

international money transfers 33

internet banking accessto12, 28 definitionof41 liabilityforlosses28, 31 provisionofinformation28-31 security28-31 transactionlimits29

investment services 34

Jjoint account, withdrawal from or stopping 12

joint and several liability, definition of 41

joint credit facilities 18

Llegal charges 9

legislation authorisingdisclosureofcustomerinformation7, 44 banking43

liability cards,Pinsorpasswords25 jointaccount12 jointcreditfacilities18

loans see credit facilities

lost cards


liabilityfor25 reporting24

lost chequebook, reporting 14

Mmanaged funds 34

marketing material 7, 9, 11

merchant card services 26

merchants, definition of 41

mobile application12, 32

multi-function cards, definition of 38

NNew Zealand Bankers’ Association

contactdetails4 members46

non-resident withholding tax 9, 43

Ooverdrafts, definition of 41

overseas bank charges 9

Ppasswords

definitionof41 issueof21 liabilityfordisclosure25 reportingloss,theftorunauthoriseduse24 security21 suitabilityof21

payment services clearanceoffunds13 errors13 feesandcharges12 termsandconditions12

variationof13

personal information see customer information

PINs definitionof41 issueof21 liabilityfordisclosure25 reportingloss,theftorunauthoriseduse24 security21 suitabilityof21

prepaid cards, definition of 38

Privacy Act 1993, compliance with 7

products and services see also terms and conditions accessto12 complaints5 insuranceservices34 introductionof11 investmentservices34 paymentservices12 withdrawalof11

promotional material 7, 9, 11

Rreasonable accommodation 5, 41

reporting loss, theft or unauthorised use of card, PIN or password 24

reporting lost chequebook 14

resident withholding tax 9, 43

Ssafe custody

accessto34 definitionof42

same-day cleared payments 12

securities trading facilities 34


security cards23 cheques14 commitmentto4, 28 Pinsandpasswords21

security for debt definitionof42 providersof19 third-partysecurity,definitionof42 smartphone32

special answers 15, 42

statements 35

statutes authorisingdisclosureofcustomerinformation7, 44 banking43

stop payments, definition of 43

Ttaxation

definitionof43 deposits9

telephone banking 12

telephone communications, recording of 8

term deposits, definition of 42

terms and conditions bankcheques15 cards23 creditfacilities17 depositinterestrate9 disclosureof9 liabilitiesrecards,Pinsorpasswords25 merchantcardservices26 noticeofvariation8 paymentservices12

third parties chargesfrom9

internetbanking30 Pinandpasswordsecurity22 statutesprovidingaccesstocustomerinformation7, 44

third-party security, definition of 42

transaction limits 23, 29

travellers cheques, definition of 42

Uunauthorised transactions, definition of 43

Wwebsite, communications via 8, 11

wholesale customers, definition of 43

Documents

Code of Banking Code of Practice Banking FIFTH Practice · PDF filecode of Banking Practice which took effect from 1 July 2007. compliance ... standards or practices may apply to products