Code of Banking Practice 2007

8/8/2019 Code of Banking Practice 2007

1/29

Practice

CODE

Banking

FOURTH ediTiOn JULY 2007

o

contents

1 introduction 3

1.1 thiscode 3

1.2 governingprinciplesandobjectivesothecode 4

1.3 thebankingombudsmanschemeanddealingwithcomplaints 5

2 communication 8

2.1 customerprivacy 8

2.2 communicationwithyou 9

2.3 bankdisclosure 10

3 productsandservices 12

3.1 accounts,productsandservices 12

3.2 paymentservices 15

4 cheques 17

4.1 cheques 17

4.2 bankcheques 18

5 credit 20 5.1 provisionocredit 20

5.2 guarantorsandprovidersoothersecurity 22

6 pinsandpasswords 24

7 cards 26

7.1 cards 26

7.2 liability 28

7.3 merchantcardservices 30

8 internetbanking 32

9 otherservices 38

9.1 oreignexchangeservices 38

9.2 otherfnancialservices 38

10 statementsandaccountinormation 40

11 appendix 42

11.1 glossary 42

11.2 principallegislationandinternationalbankingstandards 50

index 52

participatingbanks 56


2/29

3

1 introduction

1.1 thiscode

(a) ThisCodehasbeenpreparedbythememberbanksotheNew

ZealandBankersAssociation andis eective rom1 July2007.

ItreplacestheCodeoBankingPracticewhichtookeectrom2December2002.CompliancebyparticipatingbankswiththeCode

isconsideredbytheBankingOmbudsmanthroughcomplaintinves-

tigationsundertakenromtimetotime.FormalreviewothisCode

byparticipatingbankswillbecommencedwithinthreeyearsothe

eectivedate.Consultationwith thepublic(including interested

organisations)willtakeplaceduringthereviewprocess.Changes

tobankingpractice,technologyandlegislationmayalsojustiyan

interimreviewandamendmentotheCode.

(b) InthisCodewe,ourorusmeansyourbank,youoryour

meansyouthecustomer.

(c) ThisCoderecordsgoodbankingpractices.Weagreetoobservethese

practicesasaminimumstandard.ThisCodeisnotacompleterecord

oourrelationshipwithyou,asspecicproductsandservicesmay

havetheirowntermsandconditions.Thesetermsandconditions

mayincludeadditionalrightsandobligationsorbothyouandus.

ThisCodedoesnotalterorreplacethosetermsinanyway.

(d) WewillensurethatourstaareawareotheCodeandtheminimum

standardsogoodbankingpracticethatarerelevanttotheirareao

work.

(e) OtherCodes,ActsoParliamentorinternationallyacceptedbanking

standardsorpracticesmayapplytoproductsandservicessoldbyus

directlyoronbehaloanotherparty.Weshallcomplywithallour

legalobligations.

() ThisCodeappliestoourrelationshipwithallourCustomers.


3/29

4 5

wherewecan,tohelpyouunderstandhowyouraccountsand

productsorservicesoperate,sothatyoucandecidewhether

theyareappropriatetoyourneeds;

(iii) useourbestendeavourstomakesurethatourbankingsystems

andtechnologyaresecure;and

(iv) actairlyandreasonablytowardsyou,inaconsistentandethicalway.Whatmaybeairandreasonableinanycasewilldepend

onthecircumstances,includingourconductandyours.

(c) Wewillrecognise theneeds o elderly anddisabledCustomers

tohaveaccesstobankingservicesandwewilluseourreasonable

endeavourstoenhanceaccesstothoseservicesortheseCustomers.

Ininterpretingreasonableendeavoursorthepurposesothisclause

wewillbeguidedbythedenitionoReasonableAccommodation

ascontainedintheglossary.

(d) Pleaseaskusorclaricationiyoudonotunderstandanyothe

inormationthatweprovide.

(e) Youmaywanttoseekindependentlegalorotherproessionaladvice

relatingtotheproductsandservicesweprovide.Wewillco-operate

withyouradvisersand,onrequest,supplytheinormationtheywill

needtoadviseyouproperly.

1.3 thebankingombudsmanschemeanddealingwithcomplaints

(a) TheBankingOmbudsmanScheme

BankssubscribingtothisCodealsobelongtotheBankingOmbudsman

Scheme.TheprimarypurposeotheBankingOmbudsmanisto

reviewandrecommendwaystoresolveyourdisputesthatremain

unresolvedaterconsiderationunderyourbanksinternalcomplaints

procedures.DetailsothisreeSchemeareavailableromusorrom

(g) IntheappendixtotheCodeyouwillnd:-

aglossarydeninganumberotermsusedinthisCode;

and

principallegislationandinternationalbankingstandards

thatmayaectservicesprovidedbybanksinNewZea-

land.(h) CopiesothisCodeareavailableatallbankBranchesandonrequest

romus.Theyare alsoavailable romthe NewZealandBankers

Association.The contactdetails or theNew ZealandBankers

Associationareasollows:-

NewZealandBankersAssociation

Level12

GrandArcadeTower

16WillisStreet

POBox3043

WELLINGTON

Telephone:(04)4728838

Facsimile: (04)4731698

Website: www.nzba.org.nz

1.2 governingprinciplesandobjectivesothecode

(a) ThepurposeotheCodeisto:-

(i) recordandcommunicatetoyoutheminimumstandardso

goodbankingpracticethatwewillobserve;and

(ii) maintaingoodbank/customerrelationshipsandcommunica-

tion.

(b) Inordertoachievetheseobjectiveswewill:-

(i) complywiththeprovisionsothisCode;

(ii) provideyouwithtimelyinormation,usingplainlanguage


4/29

6 7

(iv) theBankingOmbudsmanmaythen independentlyreview

yourcomplaintandmakearecommendation.

TheBankingOmbudsmanSchemeTermsoReerencegovernthe

handlingocomplaintsreerredto theBankingOmbudsman or

consideration.

Ourinternalcomplaintprocedureswill:-

(i) bedocumented;

(ii) beaccessibletoyou;and

(iii) provideorthetimelyresolutionocomplaintsinaairand

reasonablemanner.

BrochuresrelatingtoourcomplaintsproceduresandtheBanking

OmbudsmansserviceswillbeondisplayinalloourbankBranches

aswilltheBankingOmbudsmansownbrochures.Ourcomplaints

procedurewill alsobe availableon ourwebsites andon request

romus.

theBankingOmbudsman.TheBankingOmbudsmanmay,where

appropriate,reercomplainantstootherorganisationssuchasthe

InsuranceandSavingsOmbudsman,thePrivacyCommissioneror

theHumanRightsCommissioner.ContactdetailsortheBanking

Ombudsmanareasollows:-

OceotheBankingOmbudsman

Level11

109-111FeatherstonStreet

POBox10573

TheTerrace

WELLINGTON

Freephone: 0800805950

Fax: (04)4710548

Email: [email protected]

Website: www.bankombudsman.org.nz

(b) DealingwithComplaints

Wewilloerreecomplaintsreviewproceduresorhandlingcom-

plaintsaboutanyoourproductsandservices.

Iyouhavemadeacomplaintaboutourproductsorservices:-

(i) wewillacknowledgetoyouwehavereceivedyourcomplaint

withinvebusinessdaysoourreceiptoyourcomplaint;

(ii) wewillundertakeareviewunderourowninternalcomplaints

reviewprocedure;

(iii) iyouaredissatisedwithourdecision,wewillinormyou

(usuallyinournalresponsetoyou)thatyoumayreeryour

complainttotheBankingOmbudsmanorurtherconsidera-

tion,andwewillalsoprovideyouwiththecontactdetailsor

theBankingOmbudsman;and


5/29

8 9

othisCodelistsexamplesosomeadditionallawsthatmayrequire

ustodiscloseyourcondentialinormation.

2.2 communicationwithyou

(a) Wewillprovideinormationtoyouromtimetotimeusingplain

languagewherewecan.Thismayincludeadvisingyouochangesthatmayaectyourbusinesswithus.Wewillcommunicatewith

youinatleastoneotheollowingways:-

(i) bydirectcommunicationwithyou(e.g.byletter,byemail,by

axorbytelephone);

(ii) bydisplayinginormationatBranches;or

(iii) bystatementsinthemedia,includingpublicnotices.

Inaddition,wheresuchinormationisonourwebsite,changeswill

benotedthere.

(b) Wheninormingyouothetermsandconditionsoanybankingservice,

wewillalsoinormyouthatwhenthereisavariationtoourtermsand

conditions,includingchangestoeesandcharges,wewill:-

(i) giveatleast14daysnoticeosuchvariation;and

(ii) communicatesuchchanges,either:-

bydirectcommunication;or

bydisplayinallBranchesand/orbynoticeinthemedia

(includingpublicnotices).

Inaddition,wheretermsandconditionsaredisplayedonourwebsite,

changeswillbenotedthere.

(c) Priornoticeisnotrequiredorinterestratechangesandothervari-

ationsthataresubjecttomarketfuctuations.

(d) Youareresponsibleorinormingusoanychangeoyournameor

address.

2 communication

2.1 customerprivacy

(a) Wehavea strictdutytoprotect thecondentialityoall our

CustomersandormerCustomersaairs.Wearealsoobligedinour

dealingswithourpersonalCustomerstoobserveandcomplywiththePrivacyAct1993.

(b) Whenyouaredealingwithuswemayaskyoutoproveyouridentity.

Thishelpsusprotectyourpropertyandinormation.

(c) Wewillendeavourtoensurethatyourinormationthatwehold

isaccurate.Promptadviceoanychangesinyourpersonalcontact

detailssuchasresidentialoremailaddress,ortelephoneoracsimile

numberswillhelpustodothis.Thisisveryimportantbecausewe

willthenbeabletocommunicatewithyouandsendyouinorma-

tiononyouraccountsandotherrelevantmatters.(d) Wewillonlyusetheinormationweholdaboutyouorthepro-

motionootherproductsorservicesiyouhaveconsentedtothis.

Iyoudonotwishtoreceivepromotionalmaterialromusatany

time,tellusandwewillnotsendit.

(e) Werequirealloouremployees,contractorsandagentstosigna

condentialityagreement.

() Youcanhelpustoprotectyourcondentialinormationbykeeping

allinormationregardingyouraccounts,productsandservicesina

saeplace.

(g) Whenyouaredealingwithusbytelephone,yourconversationwith

usmayberecordedorvericationortrainingpurposes.

(h) Certainlawsrequireustodiscloseyourcondentialinormation,or

example,undertheTaxAdministrationAct1994theInlandRevenue

Departmentmayrequestcertaininormationromus.Section11.2


6/29

10 11

(ii) anyeesandchargesyoumustpay;

(iii) anygovernmentchargesandtaxesyoumustpay,including

ResidentWithholdingTax,Non-ResidentWithholdingTax

andApprovedIssuerLevy;and

(iv) otherinormation,suchastheconsequencesowithdrawing

depositsearlyorinpart.

2.3 bankdisclosure

(a) YoumayrequestacopyoourcurrentquarterlyDisclosureStatement.

TheKeyInormationSummaryinthatdocumentwillbedisplayed

ineachoourBranchesandonourwebsite.

(b) Inadditiontoanyotherdisclosurerequiredbylaw,wewillmake

availabletoyou,thetermsandconditionsotheproductorserviceyouhave,bothatthetimeyoutakethatproductorserviceandupon

requestbyyouatalaterstage.

(c) Atthetimeyouopenanaccount,wewillinormyouothedetails

ostandardeesandchargespayableorthenormaloperationothe

account.Wewilladvisechargesorotherproductsandserviceson

requestoratthetimetheproductorserviceisoered.

(d) Wewillmakesure ouradvertising andpromotionalmaterial is

notdeceptiveormisleadingandthatitcomplieswithallrelevant

legislation.

(e) Wewillinormyouoournon-standardeesandchargesbeore

paymentisdue.Theremaybechargesromotherparties(including

overseasbanks)owhichwehavenoknowledgeorcontrol.Ilegal

chargesaretobepassedontoyou,youwillbetoldtheamountdue

beorewepaytheaccount(providedyourcontactdetailsareupto

date).Yourrighttoapplyorareviewothecostsyouhavebeen

chargedwillthenbepreservedundertheLawPractitionersAct1982

ortheLawyersandConveyancersAct2006.

() Anyadvertisementthatincludesadepositinterestratewillstatethatulldetailsothetermsandconditionswillbeavailableonrequest

andwillalsoincludeanyotherdisclosurerequiredbylaw.Iyou

requestit,wewillprovideyouwiththeollowinginormation:-

(i) therateointerest,andwhetheritmaychangeovertheperiod

othedeposit,howtheinterestiscalculatedandwheninterest

willbecreditedtoyouraccount;


7/29

12 13

Branchesoronourwebsiteoranycombinationothese.Iyou

wouldliketoknowmoreaboutthesenewaccounts,productsor

services,youmaywishtocontactustoobtainmoredetail.

(ii) Wereservetherightnottooeryouproductsandservices.

(c) MovingorSuspendingAccounts

(i) Iyouwishtomoveyouraccounttoanotherbankoranotherpartyrequestsustodosoonyourbehal,wewillco-oper-

ateinatimelymannerwiththerequest,subjecttoanylegal

constraints.

(ii) Wemaysuspendtheoperationoyouraccountorvarious

reasons.Thesemayinclude:-

complyingwithacourtorder;

youhavebeenadjudicatedbankrupt;

thereareinsucientundsinyouraccount;

iwearenotiedbyanypartyoadisputeovereithertheownershipoundsortheoperationotheaccount;

or charitabletrust, incorporated societyand business

accounts(andothersimilartypesoaccounts)wemaystop

theoperationotheaccountwhollyorpartiallyuntilthe

authorityothepersonrepresentingthecharitabletrust,

incorporatedsocietyorbusinessorotherentityasthecase

maybeinitsdealingswiththebankisclaried;or

toprotectoneorallothepartiestotheaccount,usora

thirdpartywhohasreasonablyclaimedaninterestinthe

account.

Whentheoperationoanaccountissuspended,wewilladvise

allaccountholdersassoonaspossible.

3 productsandservices

3.1 accounts,productsandservices

(a) OpeningAccounts

(i) Beoreoratthetimeyouopenanaccount,wewilladvise

youotherightsandobligationsrelatingtothataccount.Thisinormationwillinclude:-

thetypeoaccount;

howandbywhomthe accountis tobe operated(i.e.

individuallyorjointly);

how undsmaybe putintoor withdrawn romthe

account;

whowillbeliableorrepayinganyexistinganduturedebts

ontheaccount(e.g.itheaccountisajointaccount);and

anyadditionaltermsandconditionsthatmayapplywhen

authorisingotherstoaccessyouraccount.

(ii) Wereservetherightnottoopenanaccountoryou.

(iii) Wearerequiredbylawtosatisyourselvesastoyouridentity.

Thisistoprotectyou,aswellastoavoidpossiblemisuseo

thebankingsystem.Youwillbeadvisedwhatidentication

isrequired.Iyoudonothavethemorecommonormso

identication,youshouldletusknow,asanalternativemeans

oidenticationmaybeacceptable.

(b) NewAccounts,ProductsorServices

(i) Whenweintroducenewaccounts,productsorservices,we

willensureinormationontheprice,natureand/ortermsand

conditionsotheaccount,productorserviceisavailable.We

maycommunicatewithyouaboutnewaccounts,productsor

services.Alternatively,wemayadvertisein themedia,bank


8/29

14 15

3.2 paymentservices

(a) WemayprovideyouwithpaymentservicessuchasDirectCredits,

AutomaticPayments,DirectDebits,Bill Payments, undtransers,

electronicCardtransactions,same-dayclearedpaymentsandinter-

nationalmoneytransers.

(b) Accesstoyouraccountsmaybeprovidedbymeansotelephone,Internet,acsimile,ATMs,EFTPOS,atBranchesorothermeans.

(c) Wheresuchservicesareused,wewillinormyouo:-

(i) thetermsandconditionsthatapplytotheoutwardpayment

servicesoeredandtheconsequencesoanybreachothese

termsandconditions;

(ii) anyeesorchargesortheserviceandwewilladviseyouthat

theremaybeachargeimposedbythereceivingbank;

(iii) thedeadlinebywhichyoumayalterorstopapayment;

(iv) ourrighttoalter,adjust,cancel,reverseorsuspendanypay-

mentinstructions;and

(v) yourrighttoalter,adjust,cancel,reverseorsuspendanypay-

mentinstructions,including,butnotlimitedto,yourright

toadviseusdirectlytocancelorstopdirectdebitauthorisa-

tions.

(d) Paymentsmaybedeclinedorreversedithereareinsucientunds

inyouraccountororotherreasonsandyoumaybechargedees

inrespectosuchpayments.Fundspaidintoyouraccountmaynot

beavailableoryoutowithdrawuntilthepaymentiscleared.

(e) Onrequest,wewillprovideyouwithinormationonwhenunds

paidintoyouraccountmaybecomeavailable.Whenundsbecome

availablemaydependon anumberoactorsincludingthetype

opaymentused,jurisdiction,therulescoveringthepaymenttype

and/orwhetherthepaymentwasmadeonanon-businessdayor

(d) ClosingoAccountsand theWithdrawingo Productsand

Services

(i) Eitheryouorwemayendanybankingrelationshipatany

time,andwemaywithdrawanyproductorservice,aslong

asanyrelevanttermsandconditionsareadheredto.Wewill

notnormallycloseyouraccountsorwithdrawaproductor

serviceuntilwehavegivenyouatleast14daysnoticesetting

outtherelevantdetails.However,theremaybecircumstances

wherewecloseyouraccountorwithdrawaproductorservice

withoutpriornotice.Examplesare:-

complyingwithacourtorder;

iyouhaveactedunlawully;

iyouhavebreachedourtermsandconditions;or

iyouhaveactedabusivelytooursta.

Whenanaccountisclosed,wewillrequestthatyoureturnordestroyallunusedchequesandanyCardrelatingtothat

account.

(ii) Anyundsremaininginyouraccountattimeoclosurewill

bereturnedtoyou,subjecttoanytermsandconditions,ees

or interestapplyingto thoseunds.Further, i thereis any

disputeovertheseundswemaynotbeabletoreturnthem

toyou.

(iii) Iapartytoajointaccountadvisesusthathe/shewishesto

withdraw romthat jointaccount,wewilleither stop the

accountorremovethatpartyromtheaccount.Inbothcases,

allpartiestotheaccountwillbeadvisedassoonaspossible.

However,thejointliabilityoralldebt(includingpayments

madebutnotprocessed)atthedateostoppingtheaccount

orthatpartyswithdrawal,willcontinueuntilullrepayment

ismade.


9/29


10/29

18 19

(v) therehasnotbeenproperpaymentorthechequeandany

otherpersonpresentsthechequeorpaymentandthatperson

hasobtainedthechequebyraud,orknowsthataprevious

ownerobtainedthechequebyraud,orknowsthatitwas

originallyobtainedromthebankwithoutproperpayment.

(d) Wearenotobligedtostopabankchequeissuedtoyouuponyour

request.However,wemaydosoithechequehasbeenlost,stolen

orreturned tous byyou.BankChequescannotbe stoppedor

example,becauseyouhavechangedyourmindaboutatransaction

aterhandingthechequeovertoanotherpersonoratransaction

betweenthepartieshasbrokendownthroughthesupplyoaulty

goodsandservices.

beencashedorpresentedbywayoSpecialAnswer).Atthetime

yourequestastop,wemaynotbeabletoestablishwhetherornot

thechequecanbestopped.

(e) Iachequeismisplacedinprocessing,allbanksinvolvedwilldotheir

besttohelpyouobtainareplacement.

() Iachequeisnotpresentedtousorpaymentwithinacertainperiodotime(usuallysixmonthsromthedatewrittenonthecheque)we

may:-

(i) paythecheque;

(ii) declinetopaythecheque;or

(iii) makeanyurtherenquiryweconsidernecessarybeoredecid-

ingwhethertopayornottopaythecheque.

4.2 bankcheques

(a) Likeanyothercheque,BankChequesneedtoclearandtheunds

maynotbeavailabletoyouuntilthisprocessiscomplete.

(b) Onrequest,wewillinormyouothetermsandconditionsrelating

toBankChequesandotheeesorthisservice.

(c) There aresome limited circumstancesin whichwemayreuse

paymentonBankChequesthathavebeenissuedtoCustomers.In

general,thiswouldonlybewhen:-

(i) thechequeisraudulent,orgedorcountereit,orhasbeen

alteredsinceitwasissued;(ii) thechequehasbeenreportedlostorstolen;

(iii) acourthasissuedanorderrestrainingpayment;

(iv) therehasnotbeenproperpaymentbythecustomerorthe

chequeandthatcustomerpresentsthechequeorpayment;

or


11/29

20 21

chargedorconditionsyouwillneedtomeetbeoretheCredit

Facilityismadeavailabletoyou.

(e) IyouhaveaCreditFacilityinconjunctionwithothers,yourliability

isJointandSeveral,unlessweagreeotherwise.

() IyoudonotcomplywiththetermsoyourCreditFacility,wewill

contactyouatyourlastknownaddresstoadvisewhatstepswemay

take.Ithishappens,wemaydiscloseinormationaboutyourcontact

detailsanddebtstoCreditReerenceAgenciesand/orwemayask

anoutsidepartytocollectyourdebtonourbehal.Wewillgiveyou

noticethatwearegoingtodothis,explainwhywearedisclosing

theinormationandtheeectitmayhaveonyourabilitytoobtain

Creditintheuture.Iitislateragreedthattheinormationsupplied

wasnotcorrect,wewillmakesuretheCreditReerenceAgencies

aretoldothis.

(g) Itmaybethatwehavewrittenyourdebtoorourinternalaccount-

ingprocesses,howeverthisdoesnotmeanthatyouarenolonger

liableoryourdebt.

(h) ArecordoyourpriordebtmayremainontherecordsotheCredit

ReerenceAgencyand/orDebtCollectionAgencyevenateryou

havepaidoyourdebttous,butornolongerthanthepermitted

periodrequiredbylaw.

(i) Wewillpromptlyinormyouiweuseundsyouhavedeposited

withustoosetyourdebtswithus.

(j) Theollowingprincipleswillalsobeappliedbyus:-

(i) wewillco-operatewithyouradviserstoexplainthenature

oanyCreditFacilityandtoclariyanythingduringtherela-

tionship;

(ii) wewillagreewithyouattheoutsetotheCreditFacility

whatsortomonitoringinormationyoushouldsupplyand

5 credit

5.1 provisionocredit

(a) WhenyouseekCreditromus,wewillprovideyouwithinorma-

tionaboutthevarioustypesoCreditFacilitiesavailabletoyou,so

thatyoucanmakeaninormeddecision.

(b) WhenconsideringyourapplicationorCreditwemaytakeinto

accountyournancialhistory,includinginormationromCredit

ReerenceAgencies.Wewillobtainyourconsentbeoreaccessing

inormationaboutyouromthirdparties.

(c) WewillonlyprovideCredittoyouorincreaseyourCreditlimit

whentheinormationavailabletousleadsustobelieveyouwillbe

abletomeetthetermso theCreditFacility.Wehavetherightto

decidenottoprovideCredittoyou.

(d) WhenaCreditFacilityisapprovedbyus,wewillcomplywithalllawsthatmayapply.Wewill inormyou,andanypartyproviding

Security,oyourobligationsincluding:-

(i) theannualinterestrateandwhetheritmaybechangedduring

theperiodotheCreditFacility;

(ii) iapplicablethenancerateasdenedintheCreditContracts

Act1981;

(iii) alleesandcharges(includinggovernmentchargesandtaxes);

(iv) theperiodorwhichtheCreditFacilityisavailable;

(v) therepaymentterms,includinganypenaltiesorearlyrepay-

ment;

(vi) anyinormationyouneedtosupplytousduringthetermo

theCreditFacility;and

(vii) anyotherimportantinormationsuchas,anyinsuranceand

Security requirements,whenpenaltyordeaultinterest is


12/29

22 23

theymaybecomeliableinsteado,oraswellas,you;

(ii) theyshouldseekindependentlegalor,irequired,otherpro-

essionaladvicebeoregivinganyGuarantee;

(iii) theymayrequest,andwemay,butarenotrequiredto,agree

that theamounto their liabilityunder theGuaranteeor

Securitywillbelimited;

(iv) unlesswehaveagreedthattheamountotheGuaranteeor

Securityislimited,andwhatthelimitotheirliabilitywill

be,theirGuaranteeorSecuritywillbeunlimited;and

(v) wemayalsoclaimanyinterestowedandanycostsincurred

intherecoveryprocess.

(b) TherearecircumstanceswheretheGuaranteewillremaininorce

atertheguaranteeddebtisrepaid.Youshoulddiscussthiswithyour

independentlegalorproessionaladvisor.

(c) GuarantorsandpeoplegivingSecuritymayusethecomplaintspro-

ceduressetoutinclause1.3othisCode.

howrequently.Icircumstanceschange,anynewmonitoring

inormationrequiredwillbeadvisedtoyouinwriting;

(iii) wewillcommunicatewithyouwhenwehaveconcernsabout

yourbusinessand/orourrelationshipwithyou,explainingthe

reasonsorourconcern;

(iv) iyoundyourselinnancialdiculty,pleasecontactus

immediatelysowecanconsideryourparticularsituationand

anyrecoveryproposition.Youshouldcontactusbeoreyou

deaultunderanyCreditFacilityorassoonaspossiblethere-

aterasthesooneryoucontactus,thebetterpositionwewill

beintoassistyou.

(v) wemayaskoradditionalnancialinormationand/orseekan

independentreview.Iwedoso,wewillexplainourrequire-

mentsandthattheremaybecostsattached;

(vi) wherewe haverequestedthat youobtainan independent

reviewoyourbusiness,wherepossiblewewillseektodiscusstheinormationprovidedwithyou(and,shouldyourequest,

youradvisers)beoretakinganyaction;and

(vii) iyouactingoodaith,keepusinormedaboutdevelop-

ments,keepyouragreementswithus,heedwhatyourown

andanyindependentadviserssayandarepreparedtomake

thechangesneededearlyenoughtopreservetheunderlying

business,wewillnotnormallyseektheimmediateappoint-

mentoareceiverorstartotherrecoveryproceedings.

5.2 guarantorsandprovidersoothersecurity

(a) Wewillmakesurethatpeoplewho haveoered togiveus a

GuaranteeorotherSecurityaremadeawareotheirobligationsand

inormedthat:-

(i) bygivingaGuaranteeorprovidingSecurityoryourdebt,

24 25


13/29

24 25

notdiscloseyourPINorPasswordtoanyone(including

thePolice,bankstaoryouramily);

ensureanyauthorisedsignatoriesonyouraccountkeep

theirownPINSorPasswordssecure;

takecaretoensureno-onecanseeyouenteryourPINat

ATMsorwhenusingEFTPOS;and

reportthedisclosureorpossibledisclosureoyourPINor

PasswordassoonasyouareawareorsuspectyourPINor

Passwordhasbeendisclosed.

Inaddition,wewillinormyouthatyoushouldconsiderusinga

dierentPINorPasswordordierentCardsorequipment.

(e) Wewillconormtointernationallyacceptedstandardsormethods

ogeneration, storageand terminalSecurity relating toPINs and

Passwords,toensurecondentialityandSecurityoryourprotec-

tion.

() WewillencouragethirdpartiestomaximiseyourPINandPassword

Secur ity.ForEFTPOSacilitiesonourownpremises,wewillensure

thatnewandreplacementequipmentisoatypethatmaximisesyour

PINandPasswordSecurity.

6 pinsandpasswords

(a) IPINsorPasswordsarenotissuedtoyouinpersonorarenotselected

byyoupersonally,thePINsorPasswordswillbeissuedseparately

romanyCardorotherproductorservicewithwhichtheyareto

beused.

(b) WherePINsandPasswordsareissuedtoyoupersonally,wemust

besatisedaboutyouridentitybeoreallowingCardstobeissued

orbeoreyouaregivenaccesstootherPINorPasswordoperated

services.

(c) WewillinormyouothekindsoPINsand/orPasswordsthatare

unsuitable.Youmustnotuse thesePINsorPasswords.Unsuitable

PINsorPasswordsinclude:-

birthdates,monthsoryears;

sequentialnumbers(e.g.3456);

numbercombinations thatmaybe easily guessed (e.g.

1111);

partsoyourtelephonenumber;

partsonumbersintheorderinwhichtheyareprinted

onanyoyourCards;

othereasilyaccessiblepersonaldata(e.g.driverslicence,

lockernumberorothernumberseasilyconnectedwith

you);and

amily,petorstreetnames.(d) Wewillalso inormyou thatyoumust saeguardyourPIN or

Password.Forinstance,youmust:-

memoriseyourPINorPassword;

notrecordyourPINorPasswordanywhere;

26 27


14/29

26 27

signyourCardassoonasyoureceiveit;

notgiveyourCard/stoanyoneorletanyoneelseuseyour

Card/s(includingthePolice,bankstaoryouramily);

alwaysremembertotakeyourCardbackaterusingit;

tellusiyouchangeyouraddress,soreplacementCard/s

aresenttothecorrectplace;and

reportthelossorthetoyourCard/sassoonasyouare

awareoit.

(b) ReportingLoss,ThetorDisputedTransactions

(i) Wewillinormyouowhatproceduresyoumustusetoreport

theloss,thetorunauthoriseduseoyourCard/s,PINor

PasswordbothinNewZealandorromoverseas.

(ii) Wewillmakeavailabletoyoutelephonenumbersthatyou

canusetoreporttheloss,thetorunauthoriseduseoyour

Card/s,PINorPasswordassoonasyouareawarethatanysucheventhasoccurred.

(iii) Wewillassistyouiyouencounteranydicultieswithanother

participatingbanksATMandcannotresolvethemwiththe

participatingbankthatownstheATM.

(c) CreditCards

(i) WewillonlyprovideyouwithaCreditCardorincreaseyour

CreditCardlimitwhentheinormationmadeavailabletous

leadsustobelievethatyouwillbeabletomeettheterms

oaCreditCardacility.Wehavetherighttodecidenotto

provideaCreditCardacilitytoyou.

(ii) Youshouldbeawareotheollowingmatterswhenrequesting

aCreditCard,andollowingtheissueoaCreditCard:-

yourCreditCardtermsandconditionswilladviseyouthat

therearerisksinvolvediyougiveyourCreditCarddetails

7 cards

7.1 cards

(a) IssuingCards

(i) WewillonlyprovideyouwithanewCard(otherthanreplace-

mentorreissueCards)oninstructionromthecustomer/sresponsibleortheaccount.

(ii) WhereCardsareissuedtoyoupersonally,wemustbesatised

aboutyouridentitybeoreallowingCardstobeissued.

(iii) WhenwerstissueyourCard,wewillprovideyouwiththe

termsandconditionsrelatingtoyourCardandinormyou

whichoyouraccountsyourCardcanaccess.Wewillalso

inormyouwhethertheCardissuedtoyouhasmorethan

oneunctionandiso,whatthoseunctionsare.Thetermsand

conditionsandunctionsmaychangeromtimetotime.

(iv) Wewilladviseyouothecurrenttransactionlimitsthatapply

atEFTPOSandATMs.Theselimitsmaychangeromtime

totimeandareavailableonrequest.

(v) Wewilladviseyouooureesandchargesthatapplytoyour

Card.

(vi) AdditionalCardsmaybeissuedtoapersonnominatedby

you,iweagree.ThisisuseulorillordisabledCustomers.

Youwillbeliableoralltransactionsmadebytheadditional

cardholder/s.

(vii) WhenweissueyourCard/swewillinormyouhowtobest

saeguardyourCard/s.Forexample,youmust:-

takecareoyourCard/s.DonotleaveyourCard/sinan

unattendedwallet,purseorvehicleoranywherewherea

thiecouldremoveaCardwithoutbeingnoticed(par-

ticularlyinnightclubs,hotelsorrestaurants);

28 29


15/29

28 29

disclosureoyourPINorPassword.

(c) OnceyouhaveadvisedusthatyourCard/shavebeenlostorstolen,

oryourPINorPassworddisclosed,eitherinNewZealandorover-

seas,youwillnotberesponsibleoranyunauthoriseduseoyour

Card/saterthattime.Thisprotectionwillnotapplyiyouhave

actedraudulentlyornegligently.

(d) Youwillbeliabletopaynomorethan$50oanylossthatoccurs

beoreyounotiyus.However,this$50limitwillnotapplyi:-

(i) youhaveactedraudulentlyornegligently;or

(ii) youhavecontributedtotheunauthoriseduseoyourCard,

orexample,(butnotlimitedto) breachingourtermsand

conditionsby:-

selectingunsuitablePINsorPasswords(see clauses6(c)

and(d)othisCode);

ailingtoreasonablysaeguardCard/s; keepingwrittenrecordsoPINsorPasswords;

partingwithCard/sand/ordisclosingPINsorPasswords

toanyotherperson;

ailingtotakeallreasonablestepstopreventdisclosureto

anypersonwhenkeying-inPINsorPasswords;or

unreasonablydelayingnoticationtousothelossorthet

oCard/s,orotheactualorpossibledisclosuretoany

otherpersonoPINsorPasswords.

Ianyotheseapply,yourmaximumliabilitywillbethelessero:-

theactuallossattimeonotication;or

themaximumamountthatyouwouldhavebeenentitled

towithdrawromyouraccountbetweenthetimeyour

Cardwaslost/stolenandthetimeyounotiedus.

andauthorisetransactionsbeoreyoureceivegoodsorserv-

ices.Youshouldconsiderthesecurityandstandingothe

companyorentityyouaredoingbusinesswith(including

whenpurchasinggoodsorservicesnonace-to-ace);

youhavealimitedtimetodisputeatransaction.Wewill

inormyouothistimeinourCreditCardtermsandcondi-

tions.Failuretoreporttheincorrect,invalidorUnauthorised

Transactionwithinthat timewillmeanthatwecannot

reversethetransactionandyouwillhavetopayorit;

therearelimitedcircumstancesunderwhichwecanreverse

atransactionwhichwillbe subjectto theruleso the

relevantCreditCardcompany.Forexample,wecannot

reversea transactionwherethere isa disputewiththe

Merchantastothequalityogoodsandservicesoryou

havechangedyourmindaboutthegoodsorservice;and

iyounotiyusoanincorrect,invalidorUnauthorisedTransactionmadetoyourCreditCardaccountwithinthe

timelimit,wewillinvestigatethematter.Ithetransactionis

oundtobeincorrect,invalidornauthorisedwewillreverse

thetransaction(thisissometimescalledaChargeback).

7.2 liability

(a) YouwillnotbeliableorlossesbeoreyoureceiveyourCardor,i

applicable,yourPINandPasswordprovidedyouhavenotieduso

yourcurrentaddress.InanydisputeaboutreceiptoCard/s,PINsorPasswordsthatarenotissuedtoyouinperson,wewillnotrelyon

prooodespatchtoyourcorrectaddressasproothattheCard/s,

PINsorPasswordswerereceived.

(b) WewillullyinormyouinourCardtermsandconditionswhat

liabilityyouhaveinrelationtothe lossorthetoyourCardor

30 31


16/29

30 31

(e) Merchantsare required tosaeguardyourCarddetails sothat no

unauthorisedpersongainsaccesstothesedetails.IMerchantsail

tokeepsuchdetailssecure,theymaybeliableorlossesassociated

withmisuseothecardholderinormation.

(e) IyourCardgivesyouaccesstoanaccountwithaCreditFacility(or

example,aCreditCardorarevolvingCreditFacility),ailuretolook

ateryourCardoranyassociatedPINcouldresultinasubstantial

lossorwhichyoucouldbeheldresponsible.

() Youarenotliableorlosscausedby:-

(i) raudulentornegligentconductbyemployeesoragentsobanksorpartiesinvolvedintheprovisionoelectronicbank-

ingservices;

(ii) aultsthatoccurinmachines,Cardsorsystemsused,unless

theaultsareobviousor advisedbymessageornoticeon

display;

(iii) UnauthorisedTransactionsbeore youhave receivedyour

Cards,PINsorPasswords;or

(iv) anyotherUnauthorisedTransactionwhereitisclearthatyou

couldnothavecontributedtotheloss.

7.3 merchantcardservices

(a) OuragreementswithourMerchants ortheprocessingo Card

transactionswillhavetheirowntermsandconditionsapplyingto

use,securityandliability.TheseMerchantservicesagreementswill

alsoincludeinormationonthesettlementandreconciliationoyour

Merchantacility.Theseterms andconditionsapplyinadditionto

theminimumstandardsotheCode.

(b) WewillalsoinormourMerchantsotheassociatedrisksoacceptingCardtransactionsespeciallythosewheretheCardisnotpresent.

(c) WewillobtainaMerchantsexplicitconsentbeorechangingtheir

AcquiringBank.

(d) Wewillprovidearobust,encryptedandecientEFTPOSpayment

system.

32 33


17/29

32 33

computer/deviceunattendedwhen you arelogged onto

InternetBankingornotusingsharedcomputerslikethose

inInternetcasto access InternetBanking),wewillalso

haveonourwebsiteavailableinormationandadviceonthe

benetsoinstallingandmaintainingprotection,inrespecto,

orexample:-

anti-virussotware;

rewalls;

anti-spyware;and

operatingsystemsecurityupdates.

(v) Wewill inormyouowhatproceduresyoumust useto

reportunauthorisedaccesstoyourinormation,accountsor

disputedtransactionsusingyourInternetBankingserviceand

makeavailabletoyoucontactinormationsoyoucanreport

thisactivityassoonasyouareawareoit.

(vi) WhenwerstgiveyouaccesstoourInternetBankingserv-

iceswewilltellyouwheretondtheinormationyouneed

tosaeguardyouronlineinormationandtoprotectyoursel

andyourowncomputerromraud,scamsorunauthorised

bankingtransactions.Thisinormationwillbeupdatedrom

timetotime.

(vii) Wewillneversendyouanemailaskingyoutoconrmyour

securityinormationoraskingyoutodiscloseyourPassword

orsecurityinormationbyemail.

(viii) Wemayalsowarnyouagainstusinganaccountaggregationsystemorsotwarewhichisnotprovidedbyusthatletsyou

seeallyouronlineaccountsromdierentwebsitesontheone

websiteandrequiresyoutoinputordiscloseyourcustomer

ID,Passwordoranyothersecurityinormation.

(ix) WhenyouhaveaccesstoInternetBankingserviceswewill

8 internetbanking

(a) OurSystems

(i) WewilltakeappropriatemeasurestoensurethatourInternet

Bankingsystemsandtechnologyaresecureandareregularly

reviewedandupdatedorthispurpose.

(ii) Iyouincuradirectlossthatisduetoasecuritybreacho

ourInternetBankingsystemasaresultoourailuretotake

reasonablecareandisnotcausedorcontributedtobyyou,

wewillreimburseyouorthatloss.

(iii) Wewillexercisereasonablecareandskillinprovidingyou

withInternetBankingservices.However,subjecttoourobli-

gationsundertheConsumerGuaranteesAct1993wewill

notberesponsibleiyouincuraloss,whichiscausedthrough

circumstancesbeyondourreasonablecontrol.Inparticular,we

cannotberesponsibleoralosscausedthroughcircumstances

beyondourreasonablecontrolbecauseo:-

yourinabilityto accessInternetBanking,oranyother

applicationassociatedorreliantonInternetBanking,at

anytime,oranyailureordelayinprovidingaservicevia

theInternet;or

amalunctionoanyequipment(includingtelecommuni-

cationsequipment)whichsupportsourInternetBanking

service.

(iv) Yourcomputerordeviceisnotpartooursystemthereore

wecannotcontrol,andarenotresponsibleor,itssecurity.

However,wewillinormyou,primarilythroughourwebsite,

howtobestsaeguardyouronlineinormationandthesteps

youshouldtaketoprotectyourselandyourowncomputer

romraud,scamsorunauthorisedbankingtransactions.

Inadditiontonontechnicaladvice(suchasnotleavingyour

34 35


18/29

34 35

creatingorusingaPasswordandanyothersecurityinor-

mationthatisuniqueand/orisnotthesameasorsimilar

toPasswordsandanyothersecurityinormationusedor

otherservicesyouuse;

changingyourPasswordandanyothersecurityinorma-

tionimmediatelyianyoneelsedoesormayknowit;

regularlychangingyourPasswordorincreasedsecurity,

andhowtodothis;

takingreasonablecarewhenaccessingyourInternetBank-

ingservicetoensurethatyourPasswordorothersecurity

inormationisnotseenbyordisclosedtoanyoneelse;

notopening attachments or runningsotwarerom

untrustedorunknownsources;and

notrespondingtoanyrequestsoryourPasswordorsecu-

rityinormation.

(c) YourLiability(Responsibility)

(i) Youwill notbe liable orlosses caused byUnauthorised

TransactionsbeoreyouareabletoaccessInternetBanking

orthersttimeorduringanyperiodwepreventyourom

accessingInternetBanking,including,iapplicable,beoreyou

receiveyourcustomerID,Passwordoranyothersecurityinor-

mationprovidedyouhavenotiedusoyourcurrentaddress.

InanydisputeaboutreceiptocustomerIDs,Passwordsor

securityinormationthatarenotissuedtoyouinperson,we

willnotrelyonprooodespatchtoyourcorrectaddressasproothatthecustomerID,Passwordorothersecurityinor-

mationoradditionalauthenticationwerereceived.

(ii) Iyouadviseusaspromptlyasisreasonablypossiblethatyour

customerID,Passwordoranyothersecurityinormationisor

maybeknowntoanotherpersonortherehasbeenanunauthor-

alsoinormyouotheapplicabletermsandconditionsrelating

totheuseoInternetBankingservices.

(x) Wewilladviseyouothecurrenttransactionlimitsthatapply

toourInternetBankingservices.Theselimitsmaychange

romtimetotimeandareavailableuponrequest.

(b) YourID andPasswordsand otherAuthentication/Security

Inormation

Wewillprovideyouwithregularlyupdatedinormationon:-(i) HowtoaccessInternetBankingservices,includingdetailsabout

yourcustomerID,selectionoappropriatePasswordsandthe

availabilityoadditionalauthenticationorsecurityoptions.

(ii) MaintainingthesecurityoyourcustomerID,Passwordsand

anyother securityinormation(which,whereapplicable,

includesanysecondactorauthenticationsecuritydevice).

(iii) Your responsibilities orprotecting yourPassword andany

othersecurityinormation,including(butnotlimitedto):-

neverdisclosing yourPassword andanyothersecurity

inormationtoanyoneelse,includingbanksta,policeor

amilymembers;

notrecordingyourPasswordorothersecurityinorma-

tionincludingkeepingyourPasswordonaleoronyour

computerorotherdevice(includinganyPasswordsaving

acility);

notcreatingorusingaPasswordandanyothersecurity

inormationthatcanbe:-

a)easilyoundout;or

b)relates topersonalinormationaboutyoursel(e.g.

yourbirthday,amily,streetorpetnames)orincludes

anyobviousorsequentialnumberssuchas54321or

relatednumberssuchas22222;

36 37


19/29

36 37

youhaveailedtoollowourreasonablesecuritywarnings

abouttheappropriateprocessesandsaeguardstoollow

whenusingInternetBanking.

Ianyotheseapplyyourmaximumliabilitywillbethelesser

o:-

theactuallossatthetimeonoticationtous;or

thebalancethatwouldhavebeenavailableorwithdrawal

romyouraccount(s), including anyCreditFacility,

betweenthetimeanyunauthorisedaccesswasmadeand

thetimeyounotiedus.

(iv) I youhave usedor allowedyouraccountto beused to

processraudulentorUnauthorisedTransactionsyoumaybe

liableorsomeorallothelosssueredbythepartywho

hasbeenderauded,regardlessothebalanceavailableinyour

account.

(v) Wereservetherighttorequestaccesstoyourcomputerordeviceinordertoveriythatyouhavetakenallreasonable

stepstoprotectyourcomputerordeviceandsaeguardyour

secureinormationinaccordancewiththisCode.Iyoureuse

ourrequestoraccessthenwemayreuseyourclaim.

isedaccesstoyourInternetBankinginormationoraccounts

youwillnotbeheldresponsibleoranylossincurredaterthat

time,unlessyouhaveactedraudulentlyornegligentlyorhave

contributedtosuchdisclosureorunauthorisedaccess.

(iii) YoumaybeliableianUnauthorisedTransactionoccursater

youhavereceivedthemeanstoaccessInternetBanking,ior

example,(butnotlimitedto)youhavebreachedourtermsandconditionsbydoingtheollowing:-

youhavea PINorPasswordoa typeyouhavebeen

warnednottochoose;

youhavevoluntarilyornegligentlydisclosedyourPIN,

Passwordorothersecurityinormationtoanyoneelse;

youhavekeptawrittenorelectronicrecordothePIN,

Passwordorothermeansoaccess;

youhaveusedacomputerordevicethatdoesnothave

appropriateprotectivesotware andoperatingsysteminstalledanduptodate;

youhaveailedtotakereasonablestepstoensurethatthe

protective systemssuch asvirus scanning,rewall, anti-

spyware,operatingsystemandanti-spamsotwareonyour

computerareuptodate;

youhaveailed totakereasonablecare tosaeguardany

otherdevicethatisusedtoaccessyourInternetBanking

service;

youhaveailedtoadviseusaspromptlyasisreasonablypossiblethatyouareawarethatsomeoneotherthanyou

hasaccessedyourInternetBankingserviceoranUnau-

thorisedTransactionhasoccurred;

youhaveletyourcomputerunattendedwhenloggedon

totheInternetBankingservice;and

38 39


20/29

(c) Beoreyoupurchasesuchproductsandservices(otherthaninsur-

ance),wewilladviseyou(inadditiontoanydisclosurerequiredby

law)otheollowinginormation,soyoucanmakeaninormed

decisionastowhichproductsorservicesmeetyourneeds:-

(i) thetermsandconditionsotheproductorservice;

(ii) anyeesandchargesapplicabletotheproductorserviceand

howtheywillbecharged;and

(iii) wheneitherousmayalterorendthearrangementandthe

likelyconsequencesothis.

(d) Forinsuranceproductsandservices,youwillbeadvisedotheol-

lowinginormationatthetimetheinsureracceptstheapplication

(inadditiontoanydisclosurerequiredbylaw),soyoucanmakean

inormeddecisionastowhichinsuranceproductsorservicesmeet

yourneeds:-

(i) thetermsandconditionsotheproductorservice;

(ii) anyees,chargesandpremiumsapplicabletotheproductor

service;

(iii) wheneithertheinsureroryoumayalterorendthearrange-

mentandthelikelyconsequencesothis;and

(iv) whetherareelookperiodisoeredandiso,howlongor.

Whenareelookperiodisoered,itshallbeaminimumo

vebusinessdaysorasinglepremiumpolicyandtenbusiness

daysorperiodicpremiumsortheminimumrequiredbylaw,

commencingromthelateroconrmationotheproposalby

youorreceiptbyyouothepolicydescriptionandstatementopolicyholderrights.

(e) Onrequest,wewillhelpyouestablishyourneedsbeoreyoudecide

onaproductorservice.

9 otherservices

9.1 oreignexchangeservices

(a) WewillprovideyouwithdetailsoExchangeRatesandourcom-

missionchargesor,ithisisnotpossibleatthetime,thebasison

whichthetransactionwillbecompleted.

(b) Wewillprovideyouwithanindicationowhenmoneysentoverseas

byinternationalmoneytranseronyourinstructionswouldnormally

beavailableorcollection.Wewillalsoinormyouthattheperson

receivingtheundsmayhavetopayaeetotheoverseasbank.

(c) Beorecompletinganycontractororwardoreigncurrencytransac-

tionsorapersonalcustomer,wewillinormyouoanyeesandrisks

associatedwiththecancellationo,orvariationto,suchcontract.

(d) Whenweareactingonyourbehaltocollecttheproceedsooreign

chequesororexportorimporttransactions,wewillinormyouonrequestothelikelycostsothetransaction(includinganyoverseas

bankcosts,iknown),thelikelytimeorthecollectiontobepaid

andtheobligationsothepartiesunderInternationalChambero

Commercerules.

9.2 otherfnancialservices

(a) Wemayprovideoroerotherproductsandservicesincludingman-

agedunds,insurance,SaeCustodyandsecuritiestradingacilities.We

willadviseyouthattheremayberisksininvestinginorpurchasingsomeotheseproductsorservices.

(b) Someotheseproductsandservicesmaybesuppliedbythirdpar-

tiesandsoldbyusasanagent.Thecontract,includingitstermsand

conditions,orsuchproductsorserviceswillbebetweenyouandthe

thirdpartysupplierandwemayreceivecommissionorsuchsales.

40 41


21/29

(e) Someproducts(orexample,TermDeposits,loans,superannuation,

unittrustsandlieinsurance)mayhavespecicinormationreporting

requirements,withwhichwewillcomply.

10 statementsandaccountinormation

(a) Unlessyourequestotherwise,atleasteverysixmonths,wewillmake

availabletoyourecordsrelatingtoyourtransactionalaccounts.These

willbeinprintedorelectronicormasagreedwithyou.Theywill

bearecordoalltransactionssincethepreviousstatement.Iyou

haveapassbookaccount,thiswillbetheonlyrecordotransactionsyoureceive.Iyourequireurtherrecords,theremaybeacost.

(b) Foraccountswherestatementsareprovided, other than those

describedinclause10(e)othisCode,thosestatementswillshow:-

(i) oreachtransactionsincethepreviousstatement:-

theamountothetransaction;

thedatethetransactionwaspaidintoorwithdrawnrom

theaccount;

the chequenumbero any chequespaid outoyour

account;and

orCardtransactions,AutomaticPayments,DirectCredits,

DirectDebitsandotherpayments,reerencetotheparty

whoismakingorreceivingthepayment(isuchinorma-

tionhasbeenmadeavailable);

(ii) anyeesorchargesrelatingtotheoperationotheaccount;

and

(iii) thecontactdetailsormakingenquiriesorreportingerrors

inthestatementassoonasyoundthem.

(c) Wewillinormyouthatassoonasyoureceiveyourstatement,you

shouldcheckallentriesandreporttousanyapparenterrors,discrep-

anciesortransactionsyouhavenotauthorisedassoonaspossible.

(d) Wewillmakesurethattheelectronicundstransersystemsweuse

recordsucientinormationontransactionssotheycanbetraced,

checkedandveried.

42 43


22/29

alsobecalledrepresentativeoces,pods,outlets,customer

servicecentres,etc.

Cards

AgeneraltermoranyCardsthatcanbeusedtopayorgoodsand

services,or toaccessATMmachinesor otherelectronicbanking

servicessuchasEFTPOS.

Examplesare:-

(i) CreditCards-CardsthatallowCustomerstobuyonCredit

andto obtain cashadvances.Customers receivemonthly

statementsandmaypaythebalanceinullorinpart,though

thereisusuallyaspeciedminimumpayment.

(ii) ChargeCards-similartoCreditCards.TheyallowCustomers

topayorpurchasesand,insomecases,toobtaincashadvances.

Whenthemonthlystatementisreceived,thebalancemustbe

paidinull.

(iii) DebitCards-Cardsthatcanbeusedtoaccessyouraccounts

toobtaincashormakeapaymentatapointosale.Customers

accountsaredebitedelectronicallyorthesetransactions.

(iv) CashCards-CardsusedtoobtaincashromATMs.

(v) Multi-FunctionCards-Cardsthatcombinemorethanone

otheseunctions.

Chargebacks

ThereversalbythebankotransactionsmadetoCustomersCredit

Cardaccountswhichareoundtobe:-

incorrectcharges;or

notvalidcharges;or

notauthorisedcharges;and

notiedtothebankwithintherequiredtimelimit.

11 appendix

11.1 glossary

ThisglossaryexplainsthemeaningowordsusedinthisCodeand

othercommonbankingterms.Theyarenotpreciselegalortechnical

denitions.

Acquiring Bank

ThebankwhichprovidesCardpaymentservicestoaMerchant.

Automatic Payments

Arrangements bywhichCustomersinstructtheirbankstomake

regularpaymentsoraxedsumromtheiraccountintoanother

bankaccount.

ATMs (Automatic Teller Machines or Cash or Money

Machines)

ElectronicterminalsthatallowCustomerstouseCardsandPINsto

accesstheiraccounts,withdrawcash,makedeposits,transerunds

oraccessotherservices.

Bank Cheques

Achequethatispurchasedrom,anddrawnontheaccountoa

bank.

Bill Payments

Aone-otranseroundsromthepayingcustomersaccounttoapre-

establishedpayeesaccount,whichisinitiatedbythepayingcustomer.

Thepayingcustomerdecidesthepaymentamountandthepayment

dateoreachpaymentandadvisesthepayingbank,viatheirbanks

telephonebankingservice,InternetBankingserviceorothermeans.

Branches

Atermoracustomercontactsitewhichthecustomercanphysically

visitandcarryouttheirgeneralbankingrequirements.Theymay

44 45


23/29

Credit

Anarrangementbywhichthebankprovidesundstoacustomer

inexchangeorapromisetorepayatalaterdate,alongwithany

interestandchargespayable.

Credit Facilities

Thesemaytakeseveralorms,orexample,Overdrats,loanssecured

againstagivenSecurityorunsecuredloans.

Credit Reerence Agencies

CompaniesthatholdrecordsoaCustomersCredithistory.

Customers

AsusedinthisCode,CustomersmeansallCustomersoaparticipating

bank(generallyreerredtoasyouoryourinthisCode).

Debt Collection Agencies

Companieswhosebusinessistocollectdebtsrompeoplewhohave

ailedtomeetanyobligationtopay.

Deault Rates

HigherratesointerestchargedwhenCustomersdrawundsrom

theirbankwithoutpriorarrangementorwhenapprovedOverdrat

limitsareexceeded.DeaultRatesointerestmayalsobecharged

onCreditFacilitiesischeduledrepaymentsaremissed.

Deaults

Failure torepayCredit ortomeet otherconditionsthatwere

promisedoragreedto.

Direct CreditsArrangementsbywhichpayments,suchassalaries,aredirectlycredited

toCustomersbankaccounts.

Direct Debit Initiator

ThepartywhoinitiatesaDirectDebitunderaDirectDebitSystem

romacustomersaccountatthecustomersbank.

Cheque Crossings

Waysomarkingchequestolimittheeasewithwhichtheycanbe

exchangedorcash.Limitedprotectionwillbegivenbyparallellines

acrosstherontothecheque.Thiscrossingprovidesonlyavery

limitedprotectionithechequeislostorstolen;essentiallyitmeans

onlythatthechequeshouldnotbecashedbutshouldbepaidinto

abankaccount.Thisprotection canbe improvedbywriting theollowingwordsbetweenthetransverselines:-

accountpayeeonly;or

nottranserable.

Cheques - Not Negotiable

Chequesthathavebeenmarkedwithtransverseparallellinesacross

therontwiththewordsnotnegotiableusuallywrittenbetween

theparallellines.Ichequeshavebeencrossedinthisway,andithey

namethepayee,orbearer,thepersonwhohasdrawnitwillhave

somelimitedprotectioniitislostorstolen.

Cheques - Not Transerable/Account Payee Only

Chequesthathavebeenmarkedwithtransverseparallellinesacross

theront,withthewordsnottranserableornontranserable,

orthewordsaccountpayeeora/cpayee(withorwithoutthe

wordonly),usuallywrittenbetweenthelines.Chequescrossedin

thiswayarepayableonlytothepartynamedonthecheque.Such

chequesoerthegreatestprotectionitheyarelostorstolenasthey

mustbedepositedinanaccountinthenameothepayee.

Cleared BalancesAvailablebalancesabletobewithdrawn.

Commissions

Chargesorprovidingservices,orexample,commissionischarged

bythebankwhenCustomersbuyorselloreignexchange.

46 47


24/29

repayment.

Inorm

AsusedinthisCode,inormreerstoanywritten(inelectronicor

paperorm)ororalcommunicationsrombankstoCustomers,whether

deliveredinpersonornot,aboutanybankproductsorservices.

Internet Banking

MeansuseoacomputerordevicetoconnectyoutoourInternet

BankingsystemsviatheInternetandcarryoutarangeotransactions

andobtaininormationaboutyouraccounts

Joint and Several

Relatestoliabilityorobligationstoabankincludingunderajoint

accountorCreditFacilitywheretheliabilitylieswith:-

(i) allothejointaccountorCreditFacilityholderstogether;

or

(ii) anyoneormoreothejointaccountorCreditFacilityholders

individually.

AnaccountorCreditFacilityholdermayalsobejointlyandseverally

liablewiththeirguarantor.

Key Inormation Summary

AsummaryothekeyeaturesintheDisclosureStatement.

Merchants

AnysuppliersogoodsorserviceswhoacceptpaymentsbyCard.

Overdrats

Thewithdrawalo undsrombankaccounts, toa greater total

amountthanaCustomersCredit balance,withor withoutprior

arrangement.

Passwords

Acondential combinationo lettersand/or numbersused by

Customerstoestablishtheirrighttoaccesstotheiraccounts.

Direct Debits

Arrangementsbywhichacustomerauthorisesthebanktomake

paymentsdirectly romtheiraccountsto athirdpartywhohas

initiatedthe arrangement.Theamountscan bexedor variable.

Ivariable,theDirectDebitInitiatormustgivepriornoticetothe

customerovariations.

Disclosure Statement

DisclosuretoCustomersonancialandotherinormationbybanks

asrequiredbytheReserveBankoNewZealandAct1989.

Dishonoured Cheques

Chequesthatarepresentedorpaymentandarenotpaid,leavingthe

persontowhomthechequeispayablewithoutthemoney.

EFTPOS (Electronic Funds Transer at Point o Sale)

AmethodopaymentbywhichCustomerscanuseCardstopay

electronicallyorgoodsorservicesortoobtaincash.

Exchange Rates

Theratesatwhichyourbankwillbuyorselloreigncurrency.

Finance Rates

ThistermisusuallyusedinrelationtoaCreditFacilityromabank.

Inthiscontext,itmeanstheratethatindicatesthetotalcostothe

CreditFacility(interestplusanyees)asanannualpercentageothe

amountotheCreditFacility.UndertheCreditContractsAct1981,

thismustbesetoutinwritingonmostloanagreements.

Fixed Rates

Ratesointerestthatstaythesame,usuallyoraspeciedperiod

otime.

Guarantees

Legalarrangementsbywhichsomeone(theguarantor)promisesto

repaythedebtsoaCustomerithatCustomerDeaultsinmaking

48 49


25/29

Term Deposits (Investments)

Acontractbetweenacustomerandabank,wherebythecustomer

lodgesadepositwiththebankoramutuallyagreedperiodotime.

Bankspayasetrateointerestonthesedeposits.Ithecustomer

wishestoaccessundsbeorethematuritydate,theremaybeaee

chargedand/orinterestpenaltyorbreakingthiscontract.

Third-Party Security

Securityprovidedbyapersonwhoisnottheborrower.

Travellers Cheques

SpeciallyprintedchequesavailableorCustomerstopurchase,usually

oruseoverseas,toobtaincashandpayorgoodsorservices.Travellers

Chequesareavailableinxedamountsinanumberomajorworld

currencies.Securityismaintainedbysigningthechequeatthetime

oreceiptandaddingasecondmatchingsignatureonpresentation

orpayment.Acommissionisgenerallypayableonthepurchaseo

thesecheques.Unauthorised Transactions

Itemsrecordedon anaccount that havebeenmadewithoutthe

customersauthority.

Variable Rates (also known as Floating Rates)

Ratesointerestthatmaybechangedduringtheperiodoborrowing.

OtenVariableRatesonborrowingsbyCustomersarelinkedtoa

banksbase(orprime)rate.

Withholding Tax (Resident (RWT) and Non-Resident

(NRWT)) and Approved Issuer LevyGovernmenttaxesoninterestincomethatbanksandotherinterest

payersmustdeductrominterestpaymentstoresidentsandnon-

residents.

PINs (Personal Identication Numbers)

CondentialnumbersusedbyCustomerstoaccesstheiraccountsvia

ATMs,EFTPOSacilities,theInternetandotherelectronicbanking

servicessuchastelephonebanking.

Reasonable Accommodation

Meansnecessaryandappropriatemodicationandadjustmentsnot

imposingadisproportionateorundueburden,whereneededinaparticularcase,toensuretopersonswithdisabilitiestheenjoyment

orexerciseonanequalbasiswithotherswhouseourservices.(This

denitionhasbeenadaptedromArticle2,DratConventionon

theRightso PersonswithDisabilities,Eighth session,NewYork,

14-25August2006).

Sae Custody

Aserviceoeredbysomebanksbywhichvaluableitemssuchas

housetitles,willsorsharecerticatescanbedepositedinabankor

sae-keeping,usuallysubjecttoaee.Security

Thepromisingoassets(suchastitlestoproperty,liepoliciesand

shares)tobanksassupportorCreditFacilitiesgrantedtoCustomers.

Amortgagedocumentis acommontype oSecurity, inwhich

propertyisusedasSecurityoraloan.ItheCreditFacilitiesarenot

repaid,thebankspositionissecured,whichmeansthatitcansell

theassetstomeettheoutstandingdebts.

Special Answers

Customerrequestsorpromptclearanceocheques,usuallysubject

toaee.

Stop Payments

Atermcommonlyusedtodescribethestoppingoachequeorsome

othertypesopayments.

50 51


26/29

ChildSupportAct1991

CommissionsoInquiryAct1908

CompaniesAct1993

CustomsandExciseAct1996

FairTradingAct1986

FisheriesAct1996

FinancialTransactionsReportingAct1996

GamingDutiesAct1971

GoodsandServicesTaxAct1985

HealthandDisabilityServices(Saety)Act2001

IncomeTaxAct2004

IncorporatedSocietiesAct1908

IndustrialandProvidentSocietiesAct1908

InsolvencyAct1967

LawPractitionersAct1982

MutualAssistanceinCriminalMattersAct1992

ProceedsoCrimeAct1991

PublicFinanceAct1989

ReserveBankoNewZealandAct1989

SecuritiesAct1978

SeriousFraudOceAct1990

SocialSecurityAct1964

StudentLoanSchemeAct1992

SummaryProceedingsAct1957

TaxAdministrationAct1994

TerrorismSuppressionAct2002

InternationalAcceptedBankingStandards

InternationalChamberoCommercesettingoutUniormRulesorCollections.

InternationalChamberoCommercesettingoutUniormCustomsandPracticeor

DocumentaryCredits.

ISDA-InternationalSwapandDerivativesAssociation,Inc.

11.2 principallegislationandinternationalbankingstandards

PrincipalStatutesGoverningBankinginNewZealand

BillsoExchangeAct1908

ChequesAct1960

CompaniesAct1993

ConsumerGuaranteesAct1993(doesnotapplytobusinessCustomers)

CreditContractsAct1981

CreditContractsandConsumerFinanceAct2003

CriminalRecords(CleanSlate)Act2004

ElectronicTransactionsAct2002

FairTradingAct1986

FinancialTransactionsReportingAct1996

HumanRightsAct1993

InvestmentAdvisers(Disclosure)Act1996

LawyersandConveyancersAct2006

MinorsContractsAct1969

NewZealandBilloRightsAct1990

PartnershipAct1908

PersonalPropertySecuritiesAct1999

PrivacyAct1993

ProceedsoCrimeAct1991

PropertyLawAct1952

ProtectionoPersonalandPropertyRightsAct1988

ReserveBankoNewZealandAct1989

SecuritiesAct1978

SecuritiesMarketsAct1988

TerrorismSuppressionAct2002

UnclaimedMoneyAct1971

StatutesProvidingAccessorThirdPartiestoCustomer

InormationHeldbyBanks

AdministrationAct1969

52 53


27/29

availab il ity4

dateeective3

participatingbanks56

pur pose3,4

rev iewo3

commissions, denition o44

communications8

company account, suspension o13

complaints procedures6condentiality8

credit, denition o45

credit cards see also cards

denitiono43

disputedtransactions28

inormationaboutrisks27

provisiono27

reportingloss,thetorunauthoriseduse27

reversalotransactions28

Credit Contracts Act 1981, compliance with

20

credit acilities

approvalo 20 debtcollection21

denitiono45

disclosurestoCreditReerenceAgencies21

eesandcharges20

independentreview22

inormationabout20

jointliability21

legalcompliance20

termsandconditions2022

Credit Reerence Agencies

denitiono45

d isclosuresto21

inormationrom20

customer inormation

accuracy8

pr ivacy8

statutesauthorisingdisclosure8,51

D

debit cards, denition o43

debt collection21

Debt Collection Agencies, denition o45

deaults, denition o45

deault rates, denition o45

deposits, disclosures10

direct credits

acces s to 15

denitiono45

direct debits acces s to 15

denitiono 46

disabled customers5,26

disclosure

bankinormation10

customercreditinormation22

customerinormation9,51

PINsandpasswords24

Disclosure Statement10,46

E

EFTPOS

acces s to 15

denitiono46

elderly customers5

electronic card transactions15

exchange rates

denitiono46

provisionoinormation38

F

ees and charges

bankcheques18

cheques17

commissions,denitiono44

creditacilities20

d isclosureo 10

oreignexchangeservices38

noticeovariation9

paymentservices15

nance rates, denition o46

xed rates, denition o46

foating rates, denition o49

indexA

access to services15

accountssee alsocards

c losure o14

identicationrequirements12

moving13

newproductsorservices12 opening12

rightsandobligations12

s tatements40

suspensiono 13

acquiring bank

consenttochange30

denitiono32

advertising material8,10,12

Approved Issuer Levy11,49

ATMs

acces s to 15

denitiono42

automatic payments

acces s to 15

denitiono 42

B

bank cheques

denitiono42


bank communications9

bank inormation, disclosure o10

bank statements 40

banking legislation 50

Banking Ombudsman Scheme

contactdetails5 pur pose5

reerralocomplaints5

banking standards, international52

banking terms, glossary o4249

bill payments

acces s to 15

denitiono42

branches

acces s to 15

denitiono42

business account, suspension o13

C

cards see also credit cards

additionalcards26

closureoaccount14

denitiono43

identicationrequirements26

issu eo26

liabilityorloss28


secur ity26


transactionlimits26

cash cards, denition o43

charge cards, denition o43

chargebacks denitiono43

process28

cheques

al tered17

bankcheques18

c le arance 17

closureoaccount14

c rossing44

d ishonoured17,46

eesandcharges17

misplacedinprocessing18

obtainingspecialanswerorearlyclearance17

secu rity17 stopping17

clearance o unds

cheques17

paymentservices15

cleared balances, denition o44

Code o Banking Practice 20023

Code o Banking Practice 2007

54 55


28/29

personal inormation seecustomer

inormation

PINs

denitiono48

i ssue o24

liabilityordisclosure28


secur ity25

suitabi li tyo 24

Privacy Act 1993, compliance with 8

products and services see also terms and

conditions

acces s to 15

complaint s6

insuranceservices38,39

introductiono12

investmentservices38

paymentservices15

withdrawalo14

promotional material8,10,12

R

reasonable accommodation 5,48

reporting loss, thet or unauthorised use o

card, PIN or password27

reporting lost chequebook17

Resident Withholding Tax11,49

S

sae custody

acces s to 38

denitiono48

same-day cleared payments15

securities trading acilities38

security

cards26 cheques17

commitmentto5,32

PINsandpasswords24

security or debt

denitiono48

providers o2021

third-partysecurity,denitiono49

special answers17,48

statements 40

statutes

authorisingdisclosureocustomerinormation

51

banking50

stop payments, denition o48

T

taxation denitiono49

deposi ts 11

telephone banking 15

telephone communications, recording o8

term deposits, denition o49

terms and conditions

bankcheques17

cards26

creditacilities20

depositinterestrate10

d isclosureo 10

liabilitiesrecards,PINsorpasswords28

merchantcardservices30

noticeovariation9

paymentservices15

third parties

charges rom10

internetbanking36

PINandpasswordsecurity25

statutesprovidingaccesstocustomer

inormation8,51

third-party security, denition o49

transaction limits26

travellers cheques, denition o49

Uunauthorised transactions, denition o49

V

variable rates, denition o49

W

website, communications via9,12

oreign exchange services 38

orward oreign currency transactions 38

und transers15

G

glossary o terms 4249

government charges11

guarantees, denition o46

guarantors22

I

identication requirements

issueocards26

openinganaccount12

purpose o8

incorporated society account, suspension o

13

independent advisers, co-operation with5

insurance services 38

interest rate changes, notice o9

international banking standards 52

international money transers38

Internet banking acces s to 15,33

denitiono47

liabilityorlosses32,35

provisionoinormation32,33,34

secu rity32,33,34

transactionlimits34

investment services38

J

joint account, withdrawal rom or stopping

14

joint and several liability47

joint credit acilities 21

K

Key Inormation Summary10,47

L

legal charges10

legislation

authorisingdisclosureocustomerinormation

51

banking50

liability

cards,PINsorpasswords28

joint account14

jointcreditacilities21

loans seecredit acilities

lost cards

l iabi li tyor28

repor ting 27

lost chequebook, reporting17

M

managed unds38

marketing material10,12

merchant card services30

merchants, denition o47

multi-unction cards, denition o43

N

New Zealand Bankers Association

contactdetails4 member s56

Non-Resident Withholding Tax11,49

O

overdrats, denition o47

overseas bank charges10

P

passwords

denitiono47

issu eo24

liabilityordisclosure28


secu rity25

suitabi li tyo 24

payment services

clearanceounds15

errors16

eesandcharges15


variationo15

56


29/29

participatingbanks

MembersotheNewZealandBankersAssociation

ANZNationalBankLimitedoperatingas:-

ANZBank

TheNationalBankoNewZealand

ASBBankLimited

BankoNewZealand

Citibank,N.A.

TheHongkongandShanghaiBankingCorporationLimited

KiwibankLimited

TSBBankLimited

WestpacBankingCorporation (NewZealanddivision)

Somesubsidiariesandrelatedcompaniesotheabovememberbanks

areexcludedromcoverageunderthisCode.Youmayobtainaulllist

osuchsubsidiariesromtheOceotheBankingOmbudsman.
http://www.anz.co.nz/http://www.nbnz.co.nz/http://www.asb.co.nz/http://www.bnz.co.nz/http://www.bnz.co.nz/http://www.citigroup.co.nz/http://www.hsbc.co.nz/http://www.kiwibank.co.nz/http://www.tsb.co.nz/http://www.westpac.co.nz/http://www.westpac.co.nz/http://www.tsb.co.nz/http://www.kiwibank.co.nz/http://www.hsbc.co.nz/http://www.citigroup.co.nz/http://www.bnz.co.nz/http://www.asb.co.nz/http://www.nbnz.co.nz/http://www.anz.co.nz/

Documents

Code of Banking Practice 2007