Valid and effective from 1 January 2014
5. EEA TRANSACTIONS
5.1. Deadlines for the EEA Transactions
5.1.1. The Bank is obliged to ensure that the amount of the EEA Transaction is transferred to the payee’s payment service provider’s account by the deadlines specified in the Technical Conditions.
5.1.2. By virtue of paragraph 5.1.1, the time period commences upon the acceptance of the Payment Order for the execution of the EEA Transaction.
5.2. Bank’s liability for an unauthorised EEA Transaction
5.2.1. If an unauthorized EEA Transaction is executed, the loss of which is not borne by the payer, the Bank shall be obliged to take the following measures immediately after the Client or other authorized person has informed the Bank of the same:
(a) to reinstate the Account from which the amount of the EEA Transaction was debited to the state in which it would be if no such debit took place, or (b) to refund the amount of the EEA Transaction to the Client, should the said
reinstatement specified in (a) above not be possible.
For the purpose of this Article, the term “immediately” means a period of time that is objectively necessary for the Bank to be able to determine whether there was any effective unauthorised EEA Transaction executed and who is liable for it.
5.2.2. The Client shall bear any loss up to an amount of EUR 150 resulting from an unauthorised EEA Transaction (if the Payment Transaction is in a currency other than EUR, it shall be converted using the foreign exchange rate issued by the Czech National Bank as of the day preceding the date the unauthorised Payment Transaction is cleared), provided such loss is caused
(a) through use of a lost or stolen Payment Instrument or
(b) through misuse of the Payment Instrument if the Client fails to arrange for protection of his/her personalized security elements.
5.2.3. If, after the Bank has provided the Client with performance under 5.2.1, it is shown that the Client had no entitlement to such performance, the Client undertakes to return to the Bank, immediately upon request, all performance to which the Client had no entitlement.
5.3. Liability for an incorrectly executed Payment Transactions
5.3.1. The Bank, as the Payer’s payment service Provider is responsible for any incorrectly executed EEA Transaction under the conditions stipulated by the Payment System Act.
5.3.2. If the Bank is liable under 5.3.1 for an incorrectly executed Payment Transaction and the Client informs the Bank that he/she does not insist on the execution of the Payment Transaction, the Bank shall proceed as per the Payment System Act.
5.3.3. If the Bank is liable for an incorrectly executed Payment Transaction and the Payer fails to inform the Bank that he/she does not insist on the execution of the Payment Transaction, the Bank shall proceed as per the Payment System Act.
5.3.4. The Bank as the payee’s provider is liable to the Payee for any incorrectly executed Payment Transaction only if the payer’s payment service provider is not liable to the payer for such Payment Transaction. If the Bank, as the Payee’s provider, is liable for an incorrectly executed Payment Transaction as per the preceding sentence, it shall proceed in compliance with the Payment System Act.
5.3.5. Paragraphs 5.3.1 to 5.3.4 of this Article shall not be applicable to payment transactions initiated by the payee if the provider of the payee fails to satisfy his obligation to submit the payment order to the payer’s provider duly and in good time.
5.3.6. If the EEA Transaction initiated by the Client is effected incorrectly, the Bank shall, upon request of the Client, make every effort that may be reasonably
41 PAYMENT SYSTEM RULES expected to track down the Payment Transaction and inform the Client of the results.
5.3.7. If the Client specifies an incorrect Unique Identifier of the payee, the Bank shall make every effort that may be reasonably expected to ensure that the funds of the incorrectly made Payment Transaction are returned to the Client. The Bank may demand consideration according to the List of Charges for returning these funds.
5.4. Limitation of Liability
5.4.1. The Bank is not liable for damage caused by blocking the Payment Instrument or rejection of the Payment Order in accordance with these Rules and Conditions.
5.4.2. The Bank is not liable for damage caused by the fact that persons other than the Bank do not allow the Client to have the funds on the Account at his/her disposal through the Payment Instrument.
5.4.3. The Client shall notify any unauthorized or incorrectly executed Payment Transaction to the Bank, without undue delay after he/she has learnt of this transaction, though not later than 13 months from the date the funds were debited from the Account. Such a notification shall be made by the Client in writing or via the Citibank Online or CitiPhone services. The liability of the Bank for an unauthorized or incorrect Payment Transaction shall cease to exist once any of the aforesaid time limits have lapsed.
5.4.4. The Client shall bear the full amount of loss consequential of an unauthorised Payment Transaction if such loss is caused by fraudulent conduct of the Client or the Client having breached wilfully or by gross negligence any of his obligations stipulated under the Agreement pertaining to the use of Payment Instruments or reporting a Payment Instrument that has been lost, stolen, misused or used without authorisation.
5.4.5. The provisions of paragraphs 5.2.2 and 5.4.4 of this Article shall not be applicable where it is proven that the Client have not acted in a fraudulent manner and (a) the loss occurred after the Client notifies the Bank of the loss, theft, misuse
or unauthorized use of the Payment Instrument, or
(b) the Bank failed to ensure that the Client has available suitable means to report at any time the loss, theft, misuse or unauthorised use of the Payment Instrument.
5.4.6. The Bank shall not be liable to the Client for any unauthorized or incorrectly effected Payment Transaction, including any failure to observe time limits for effecting the EEA Transaction, if the Bank is prevented from performing the relevant obligation by circumstances that are unusual, unforeseeable, independent of the will of the Bank and the consequences of which could not be averted by the Bank.
5.5. Refunding amounts of the authorized Payment Transactions
5.5.1. The Client is entitled to request the refund of the amount of the authorized EEA Transaction effected at the request of the payee under the conditions stipulated by the Payment System Act.
5.5.2. Paragraph 5.5.1 shall not be applied where consent to the Payment Transaction has been provided by the Client directly to the Bank and where, if applicable, the Client has been provided or made available information of the exact amount of
the Payment Transaction by the Bank or the Payee in the agreed manner, no later than 4 weeks prior to acceptance of the Payment Order.
5.5.3. If the Client expects that his direct debit transfers will be lowered, suspended or stopped, the Client shall immediately inform the Bank of this and properly modify or cancel the consent on the basis of which these transfers are made from his/
her Account.
5.5.4. The Client, in the position of a Payee, agrees that if the amount of an authorised Payment Transaction is returned from a Payment Transaction that was effected on his/her initiation, the Bank may debit funds from any of the Client’s accounts in order to return the amount of this Payment Transaction in which the payer demands a refund in accordance with generally binding legal regulations.
5.6. Corrective Settlement
5.6.1. If the Bank fails to clear a Payment Transaction amount in Czech currency or use the bank account details in accordance with the Client’s instructions, resulting in an incorrect execution of Payment Transaction, the bank or the savings and loan in the Czech Republic which maintains the account of the unauthorised payee shall, on the initiative of the Bank, debit the incorrect credit amount from the account of the unauthorised Payee and surrender this amount to the Bank so that the incorrectly executed Payment Transaction can be rectified in accordance with the Payment System Act. A measure under this paragraph may be taken within 3 months of the date of the error which led to an incorrect execution of Payment Transaction.
5.6.2. If the bank or the savings and loan in the Czech Republic fails to clear a Payment Transaction amount in the Czech currency or use the bank account details in accordance with their client’s directions, resulting in an incorrectly executed Payment Transaction, the Bank shall, in the case that the Client is an unauthorised payee, on the initiative of this bank or savings and loan, debit the incorrect credit amount from the Client’s account and surrender this amount to the bank or savings and loan so that the incorrectly executed Payment Transaction can be rectified in accordance with the Payment System Act. The Bank may also reinstate the Account to the state it would be in if no incorrectly executed Payment Transaction had occurred. A measure under this paragraph may be taken within 3 months of the date of the error which led to an incorrectly executed Payment Transaction.
5.7. Fees deducted from the transferred amount
5.7.1. With respect to the Payment Transaction executed, the Bank and the Client have agreed that the Bank may deduct its consideration from the transferred amount before this amount is credited to the Payment Account of the Client or disbursed to the Client.
5.8. Special Provisions
5.8.1. In the event that the Bank credits the amount to the Account, while expecting the transfer of funds to the Account from a third party, it shall do so in good faith in a full and timely receipt of the funds from that third party. In the event that the Bank does not receive the funds from the in a timely and regular manner, it shall be entitled to debit the Account with the amount of funds that were expected but not received. Any exchange-rate differences between the date the funds are credited to the Account and the date the funds are debited from the Account as
43 PAYMENT SYSTEM RULES per this paragraph shall be borne by the Client, except where the Bank breaches its legal duty or does not act in good faith while crediting the funds to the Account.