GENERAL TERMS AND CONDITIONS - Valid and effective from 1 January 2014

Valid and effective from 1 January 2014

2. GENERAL TERMS AND CONDITIONS

2.1. Payment Order

2.1.1. The Bank carries out the Payment Transactions based on the Client‘s Payment Order or other person authorised to submit the Payment Order in accordance with the nature of the individual Payment Transaction. The Payment Order may also be submitted as standing, in which case the Bank executes the Payment Transactions on the basis of such a Payment Order repeatedly, on the stipulated dates, cashless, with the same Payment Transaction amount, from the same payer’s account and to the same payee’s account.

2.1.2. The Payment Order shall primarily indicate the following:

(a) Unique Identifier of the payment service user(s) (particularly of the Client), (b) Unique Identifier of the relevant account(s), and

2.1.3. The Unique Identifier is:

(a) for an account, the account number in the appropriate format (account number and the bank identification code, IBAN and BIC or other mark identifying the account in the payment system);

(b) for a payment service user, ID number of the payment card or any other Payment Instrument he/she holds, birth number, identification number, or the Access Elements.

2.1.4. The Payment Order shall be issued to the Bank exclusively by one of the agreed methods and must be specific, clear and must comply with the other requirements set out by the legal regulations and the Agreement. The Bank is not obliged to verify the correctness of the data the statement of which is the responsibility of the Client.

33 PAYMENT SYSTEM RULES 2.1.5. The Payment Transaction is authorised if approved by the payer, unless the

applicable legal regulation provides otherwise. If the Client is in the position of the Payer, consent to the Payment Transaction must be given directly to the Bank. The Client shall give and submit the consent to the Payment Transaction to the Bank in any of the following manners:

(a) for Payment Transactions made upon written Payment Order, by delivery of the Payment Order bearing a signature corresponding to the specimen signature kept by the Bank at any Establishment or in any other manner agreed upon or as stipulated by the Bank;

(b) for Payment Transactions made via the CitiPhone service, by submitting the Payment Order during the phone connection, upon authentication of the Client with T-PIN or individualised question;

(c) for Payment Transactions made via the Citibank Online service, by submitting the Payment Order after authentication of the Client with a unique user name, Password and a Security Key, or

(d) for Payment Transactions made via other Payment Instruments, primarily via Cards, by

(i) giving the A-PIN Code,

(ii) signing the relevant confirmation of Payment Transaction with the signature corresponding to the one on the Card signature strip,

(iii) communicating the relevant identification details of the Payment Instrument and the CVV or CVC code or 3D Secure Code to a relevant person or

(iv) applying the Payment Instrument to a terminal accepting the payment instruments.

2.1.6. With direct debit, where the Client is in the position of a Payer, he/she shall not revoke its consent with the Payment Transaction after the end of the Business Day prior to the day agreed between the Client and the Payee as the day to debit funds from the Account.

2.1.7. In justified cases, the Bank is entitled to verify the consent to the Payment Transactions prior to accepting the Payment Order via a call-back.

2.1.8. Upon accepting of a Payment Order, the Bank assigns a reference number to each Payment Transaction. The Payment Transaction reference number is provided on the Account statement. Alternatively, the Client may learn this number using the Citibank Online or CitiPhone service. The reference number of a particular Payment Transaction must be provided in any communication with the Bank concerning the relevant Payment Transaction.

2.1.9. Payment Transaction limits are always agreed between the Client and the Bank.

The Client must always specify the upper limit for the payments requested by the payee in which the Client is the Payer, either as a single Payment Transaction limit or a limit for a period of time agreed with the Bank.

2.2. Acceptance of the Payment Order

2.2.1. The Payment Order is effective towards the Bank if accepted by the Bank. The moment of the Payment Order acceptance is:

(a) the moment when the Bank receives the Payment Order from the Client or upon request of the payee with respect to the Payment Transaction, (b) any other moment as specified by the Client in the event of the deferred

Payment Order due date or

(c) for the purposes of Payment Transactions performed through Card, the moment the message containing the details of the relevant Payment Transaction reaches the Bank.

2.2.2. If the moment the Payment Order is received is outside the Opening Hours of the Bank or the Payment Order is received by the Bank after the lapse of moment towards the end of the Opening Hours (so called “cut-off time”), specified by the Bank in the Technical Conditions, the Payment Order is deemed received at the beginning of the following Opening Hours of the Bank. To avoid any doubts, the Opening Hours or the cut-off time may vary according to the type of Payment Transaction or Payment Instrument.

2.3. Rejection of the Payment Order

2.3.1. The Bank may reject execution a Payment Order without any prior notice if:

(a) The Payment Order fails to include the necessary particulars or has not been properly authorized;

(b) the execution of the Payment Order is in conflict with the obligations imposed on the Bank by the generally recognised legal regulations;

(d) the Client’s Account lacks sufficient available funds;

(e) the amount of the Payment Transaction as per the Payment Order exceeds the agreed limit for the relevant Payment Transaction (e.g. if the limit for the Card or Account to which the Card has been issued would be exceeded as a result of the execution of the Payment Order);

(f) conditions are fulfilled for the rejection of the Instruction as defined in Article 4 of the Conditions;

(g) the Payment Order is not submitted by a person authorised to submit the same; or

(h) for the Payment Order at the request of the payee, the Bank is not provided the Client’s consent to the Payment Transaction as per the relevant Payment Order.

2.3.2. A Payment Order is not accepted if the Bank rejects to execution of the particular Payment Order.

If the Bank rejects to execution of a Payment Order, the Client will be informed of the same at the earliest opportunity in accordance with applicable laws and regulations unless the generally recognised legal regulations or the decision of a public authority preclude such a procedure.

The Client is informed by the Bank about the rejection of the Payment Order in one the following manners:

(a) notice via the Citibank Online service;

(b) via the CitiPhone service;

(d) personally at the Establishment; or

(e) by any other form, especially by notice on the Payment Transaction non-execution confirmation or by displaying the notice on the screen of the ATM or the payment terminal used for the Payment Transaction which then failed to be executed as a result of rejected Payment Order.

2.3.3. If possible, the Bank shall inform the Client of the reasons for rejection of the Payment Order and the procedure to rectify the errors which resulted in rejection of the Payment Order. This shall not apply where providing this information or making it available is contrary to any generally binding legal regulation.

35 PAYMENT SYSTEM RULES 2.3.4. The Client shall pay a fee according to the List of Charges for the information

concerning the rejection of a Payment Order.

2.3.5. The Bank is entitled to determine that it will not carry out certain kinds of Payment Transactions and will Publish the decision in advance.

2.4. Revocation of the Payment Order

2.4.1. The Client is entitled to revoke the Payment Order only as provided for by the Payment Systems Act or by these Rules, and to do so in any of the following manners:

(a) personally at any Bank Establishment, or

(b) through the CitiPhone or the Citibank Online services, with the Client authenticated by the appropriate Access Elements;

2.4.2. Once accepted by the Bank, the Payment Order may not be revoked by the Client unless otherwise provided for by these Rules or Technical Conditions.

2.4.3. Where the Payment Transaction is initiated via the Payment Order issued by the payee or the Payer by proxy of the payee, the Client shall not revoke the Payment Order after submitting the Payment Order or giving the payee his/her consent to the Payment Transaction. Technical Conditions may set out special conditions for revoking certain types of Payment Orders.

2.4.4. The Payment Order submitted through the Card must not be revoked by the Client after

(a) it has been accepted, or

(b) the Payment Order or the consent to the Payment Transaction has been transmitted to the payee,

whichever comes earlier.

2.4.5. Where the provisions of paragraphs 2.4.2 and 2.4.3 are contrary to the agreement between the Client, who is a Payer, and the Bank in connection with other than a payment service, such provisions of these paragraphs shall not apply.

2.4.6. If the Client requests the Bank to revoke the Payment Order at a moment when the revocation is impermissible according to paragraphs 2.4.2 and 2.4.3, the Bank shall be entitled to make every effort to revoke such a Payment Order.

Nevertheless, the Bank shall bear no responsibility for the outcome of the steps taken in this respect. The Bank also hereby advises the Client of the risk that such a revocation may fail. Upon the Client’s request, the Bank shall notify the Client of the outcome of the steps taken in this respect. The Client shall pay the Bank a fee according to the Bank’s List of Charges for the efforts made by the Bank to revoke the Payment Order.

2.4.7. The revocation of the Payment Order shall not be governed by the provision of paragraph 4.1.6 hereof.

2.4.8. The Client shall pay the Bank a fee according to the Bank’s List of Charges for any Payment Order revoked.

2.5. Execution of the Payment Order

2.5.1. The Bank shall execute the Payment Order, if there are no circumstances which would entitle the Bank to reject execution of the Payment Order.

2.5.2. The Bank and other payment service providers involved in the performance of the Payment Transaction are authorized to perform the Payment Transaction exclusively on the basis of data contained in the Payment Order.

2.5.3. The Bank informs the Client at least once in a month about the Payment Orders executed in the form of Account statement and in an agreed manner. With a Client who is not a consumer or a micro enterprise within the meaning of the Payment System Act, the Bank may arrange another frequency of informing the Client about the Payment Transactions.

2.6. Information on Payment Services and the Master Agreement

2.6.1. The Agreement is entered into in Czech, unless otherwise arranged with the Client. The Client may request the Bank to provide the content of the Agreement as well as any other information referred to in sections 81-85 of the Payment System Act. The Bank shall Notify this information to the Client in Qualified Manner and without undue delay.

2.6.2. At the request of the Client effecting that Funds are debited from the Account to effect a Payment Transaction, the Bank provides information as to the maximum time limit for effecting the Payment Transaction and the consideration the Client shall pay the Bank for effecting the Payment Transaction.

2.6.3. Unless agreed otherwise and where applicable to the given Payment Transaction in which the Client is the Payer, Payment Transaction information contains:

(a) information allowing the Client to identify the Payment Transaction, and information, where applicable, as to the payee;

(b) the Payment Transaction amount in the currency in which such amount was debited from the Client’s Account or the currency used in the Payment Order;

(c) information as to the consideration payable by the Client to the Bank for the effecting of the Payment Transaction and, if such consideration amount consists of several separate amounts, also an itemised list of such amounts;

(d) where applicable, the foreign exchange rate applied by the Bank and the converted amount of the Payment Transaction;

(e) the value date of the Payment Transaction amount debited from the Account or the date of receipt of the Payment Order

and shall be indicated on the Account statement which shall be Notified to the Client in Qualified Manner.

2.6.4. Unless otherwise agreed and where applicable to the given Payment Transaction in which the Client is the Payee, Payment Transaction information contains:

(a) the information allowing the Client to identify the Payment Transaction, and information, where applicable, as to the payer and other information submitted in connection with the Payment Transaction;

(b) the Payment Transaction amount in the currency in which it was credited to the Account;

(d) where applicable, the foreign exchange rate applied by the Bank and the Payment Transaction amount prior to this conversion;

(e) the value date of the amount credited to the Account

and shall be indicated on the Account statement which shall be Notified to the Client in Qualified Manner.

37 PAYMENT SYSTEM RULES 2.7. Interest rates and foreign exchange rates

2.7.1. Unless otherwise stipulated, when the Bank converts currencies as part of a Payment Transaction, the Bank always uses the foreign exchange rate issued by the Bank and valid at the time the funds are credited to or debited from the Account. The current interest rates and foreign exchange rates are Published by the Bank. Detailed information concerning reference interest rates, including the index or the base and the relevant day for determining these rates are stipulated in the Interest Rate Sheet.

2.7.2. The Bank may at any time change the agreement on interest rates and exchange rates, unilaterally and without any prior notice, if such a change is based on a change to reference rates or foreign exchange rates. Changes in the interest or foreign exchange rates used in Payment Transactions shall be implemented and calculated in a neutral manner. Changes in the interest rates will be Published by the Bank. Any change in the interest rate or the foreign exchange rate that is more favourable to the Client may be applied without prior notice.

2.7.3. The foreign exchange rate for the Payment Transactions carried out via the Card in a currency other than Czech Crowns is determined in accordance with the relevant Product Conditions.

In document BUSINESS TERMS AND CONDITIONS (Page 28-33)