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ASK MORE OF YOUR BANK
ACCOUNT AGREEMENT
General terms
and conditions
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C O N T E N T S
PART I
–
CURRENT ACCOUNTS1 - OPENING THE ACCOUNT . . . .
1.1
Documents to be provided when opening the account
1.2
Authorizations and powers of attorney
1.3
Information to be provided to the Bank
2 - OPERATION OF THE ACCOUNT . . . .
2.1
Operations credited to the account
2.1.1Main operations
2.1.2Dishonoured items
2.2
Operations debited to the account
2.2.1Main operations2.2.2Sufficient funds
2.2.3Receiving Customer’s orders
2.3
Provisions relative to certain payment instruments
2.3.1Cheques 2.3.2Drafts 2.3.3Payment services 2.3.3.1 General 2.3.3.2 Over-the-counter operations 2.3.3.3 e-cash operations 2.3.3.4 Transfers issued 2.3.3.5 Transfers received2.3.3.6 Direct debiting - On the debit side 2.3.3.7 Direct debit - Biller’s collections
2.3.3.8 Interbank payment Orders (TIP) to the debit of the account 2.3.3.9 TIP sent for collection
2.3.3.10 Telepayment
2.4
Provisions relative to accounts in foreign currencies
2.5
Statement of account - Execution slip - Invoice - Approval of operations
3 - FINANCIAL TERMS
. . . .3.1
Value dating of operations
3.2
Statement of account - Interest and charges
3.3
Financial terms applicable to services and certain operating credits
3.3.1Services3.3.2Discount
3.3.3Cash facilities
3.4
Annual Proportional Interest Rate
3.4.1Overdraft3.4.2Discount
3.4.3Other credits
4 - TRANSFERRING THE ACCOUNT TO ANOTHER BRANCH OF THE BANK . . . .
5 - CLOSING THE ACCOUNT AND TERMINATING FACILITIES . . . .
5.1
Term of the Agreement
5.2
Termination of facilities
5.3
Closing the current account
5.4
Joint provisions for closing accounts and terminating facilities
6 - GENERAL PROVISIONS APPLICABLE TO ALL ACCOUNTS AND SERVICES . . . .
6.1 Changes to services and to the agreement
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C O N T E N T S
PART II
–
INVESTMENT SERVICESDEFINITIONS
. . . .
Article 1 –
PURPOSE
. . . .
Article 2 –
CUSTOMER CATEGORISATION
. . . .
Article 3 –
SUITABILITY
. . . .
Article 4 –
ACCOUNT KEEPING – CUSTODY
. . . .
Article 5 –
RECEIPT AND TRANSMISSION OF ORDERS
. . . .
Article 6 –
LCL’s OBLIGATIONS
. . . .
Article 7 –
CUSTOMER OBLIGATIONS
. . . .
Article 8 –
SPECIFIC RULES FOR SECURITIES IN REGISTERED FORM
. . . .
Article 9 –
OPERATIONS ON REGULATED MARKETS INVOLVING SPECIFIC RISKS
. . . .
Article 10 –
COVER FOR ORDERS ON REGULATED FINANCIAL FUTURES MARKETS
. . . .
Article 11 –
SECURITIES GUARANTEE MECHANISM
. . . .
Article 12 –
DEFERRED SETTLEMENT SERVICE ORDERS (OSRD)
. . . .
Article 13 –
CUSTOMER INFORMATION
. . . .
Article 14 –
INCIDENTS ON THE ACCOUNT
. . . .
Article 15 –
RATES
. . . .
Article 16 –
LEGAL OBLIGATIONS
. . . .
Article 17 –
CLOSING THE ACCOUNT
. . . .
Appendix 1 -
REGULATIONS APPLICABLE TO HOLDERS OF AMERICAN SECURITIES
PART III
–
JOINT PROVISIONS
1 - DISCLOSURE . . . .
1.1
Personal information protection clause
1.2 “Personal Data Protection”
1.3 Recording of telephone conversations
1.4 Combat against money laundering, terrorist financing, corruption, bribery and fraud
and compliance with embargoes
1.5 Electronic mail shots and prospecting
2 - GUARANTEE OF DEPOSITS . . . .
3 - GOVERNING LAW - COMPETENT JURISDICTION . . . .
By opening a current account, its holder, hereinafter called "the Customer”, and LE CREDIT LYONNAIS, hereinafter called “the Bank” or “LCL”, agree to place in a single account the amounts due under operations they may perform together.
These are credits and debits to the account that guarantee each other and offset each other to form a balance which alone is payable. The sureties that guarantee the debts on a current account remain in force, but they cover the debit balance determined when the account is closed.
The current account encompasses all obligations that exist and shall exist in the future between the Customer and LCL even though operations are posted in different accounts, opened or to be opened, including time accounts, except for those resulting from operations which are expressly excluded from the current account.
The current account balance includes debts with a cause prior to its calculation but which, still contingent on that date, shall only accrue in the Bank’s favour later. The balance on the statement of account is only final when all outstanding operations have been settled.
1 - OPENING THE ACCOUNT
1.1
Documents to be provided when opening the account
When requesting the opening of an account, the Customer must provide LCL with:
la current abstract from the register of companies less than three months old,
la copy, duly certified by the legal representative of the account holding company’s articles of incorporation and of any amendment thereto,
la copy, certified true by the legal representative of documents appointing the legal representatives of the account holding company,
lthe last three balance sheets certified by a chartered accountant or the legal representatives
Legal representatives must provide proof of identity and residence at the same time as they give a specimen of their signature.
Further documents or information may be requested, particularly for accounts opened by regulated professions or legal entities whose registered offices are located abroad.
1.2 Authorizations and powers of attorney
Operations are performed under the signature of the account holder or that of its legal representatives. Authorized persons may appoint a representative by signing a power of attorney that, depending on their choice, enables the representative, who may have the power of delegation to perform all operations or some of them only.
The representative shall leave a specimen signature at the same time as providing proof of identity. Where use of a facsimile signature is authorized by law, particularly for the endorsement of cheques and drafts, the Bank shall be notified thereof and the procedure shall have to be accepted by it.
The Customer may cancel any proxy subject to notifying the Bank thereof, in writing.
These general terms and conditions apply to any account opened by the Client with Crédit Lyonnais, unless expressly specified otherwise.
This Agreement, including the general and particular terms of conditions relative to current accounts (part I), the provisions relative to investment services (part II) and joint provisions (part III) is hereinafter called the “Agreement”. The financial terms applicable to the most frequent operations are specified in the “Rates applicable to the main operations by Corporate and Institutional Customers”.
The Agreement takes into account the provisions of the Monetary and Financial Code, notably including the provisions of articles L133-2 and L314-5.
CURRENT ACCOUNTS
Even in the event their holders leave their functions, the signing powers granted by legal representatives remain valid vis-à-vis the Bank until the latter shall have been notified of their cancellation or amendment.
1.3 Information to be provided to the Bank
The Customer shall notify the Bank as soon as possible of any change in the information provided at the time the account was opened (notably amendments to the Articles of Incorporation or changes of managers).
Furthermore, every year it shall send to LCL its balance sheet and the notes to its financial statements, notably its statutory auditors’ reports or, in the absence of statutory auditor, its balance sheet prepared and signed by a chartered accountant as well as any other compulsory forecasts and accounting documents or documents that the Bank may require showing its financial situation.
As part of its due diligence obligations as a financial organization, particularly in terms of money laundering, LCL may have to ask for explanations about certain operations, their origin and their beneficiary. The Customer undertakes to provide the Bank with all documents or information so required.
2 - OPERATION OF THE ACCOUNT
The following provisions concern general rules applicable to operations and are not an unconditional offer of services. Some of them entail signing a specific agreement and/or are subject to conditions of performance specified in technical documents provided to the Customer.
The Bank’s responsibility in terms of collection times and of the time period for sending notices of dishonour is limited to cases where the usual deadlines are exceeded due to gross negligence.
2.1 Operations credited to the account
2.1.1Main operationsThe Bank accepts all means of payment to credit the account:
lcash,
lcheques,
ldrafts for which the Customer is beneficiary or holder,
ltransfers in the Customer’s favour,
lpayments by bank card,
lcollection items issued by the Customer such as domestic direct debit (ADP), SEPA direct debit (SDD), interbank payment Order (TIP) and Telepayments.
The Bank also receives payment instruments from overseas such as:
lincoming transfers (payment Orders from abroad payable at the Bank),
lcollection of cheques payable abroad,
lcollection of payment instruments payable abroad,
ldocumentary collections.
Remittances are credited to the account and given value according to type in compliance with the provisions of paragraph 3.1 below. Credit to the account is "under usual reserves” i.e.,subject to actual collection by LCL of the amount of the remittance. The Bank reserves the right to select remittances. The checks it has to carry out under applicable regulations, particularly for cross-border fund flows, may lead it to defer the entry to the account. The time periods for the execution of collections under transfers are specified in the "Rates applicable to the main operations by Corporate and Institutional Customers".
When the Bank accepts collections in connection with bank card Transactions, this service is subject to a specific agreement.
2.1.2Dishonoured items
Information
The Customer is notified of dishonoured items within time frames and according to methods specific to each means of payment (entry on the statement or specific advice, telematic or electronic information).
Payability
Any dishonoured item is due and payable forthwith. These items are charged to the current account, increased by rejection costs. When there are not sufficient funds in the current account, dishonoured drafts and cheques are, at the Bank's initiative, posted to a dishonoured item account excluded from the current account to enable the Bank to exercise its recourse. Unless otherwise agreed, the dishonoured items account shall serve interest in the same condi-tions as the current account.
Return of drafts and cheques
Dishonoured cheques are returned to the Customer, upon its written request, after a charge back to the current account except in the case of an interbank rejection for technical reasons.
2.2
Operations debited to the account
2.2.1Main operationsThe following items are debited to the account:
lcash withdrawals ;
lpayments by the Bank for the Customer’s account or to its order:
lcheques,
ldomiciled drafts,
ltransfers,
lpayment by bank card,
ldomestic direct debit (ADP), SEPA direct debit (SDD),
linterbank payment orders (TIP),
ltelepayments.
lpayments abroad such as:
ltransfers (international transfers),
lcheques,
lclean or documentary drafts,
ldocumentary collections.
llastly, any and all amounts due to the Bank in connection with operations with the Customer such as interest, fees, costs, bank charges, repayment instalments, and reimbursements of all and any amounts paid by the Bank upon an order from the Client. These entries are assigned a value date according to type in compliance with the provisions of paragraph 3.1 below. The checks that the Bank is required to make under applicable laws and regulations, particularly cross-border fund flows, may lead it to defer the execution of an order. Execution times for transfers are specified in the "Rates applicable to the main operations by Corporate and Institutional Customers".
2.2.2Sufficient funds
The Customer’s orders are executed subject to there being sufficient funds available in the account.
LCL may reduce or terminate without notice an overdraft it may have exceptionally authorized and the Customer must, when there are insufficient funds in its account for a certain operation, obtain the Bank’s prior agreement, notably before issuing cheques.
Failing this, the payment may be refused with all ensuing consequences.
In this regard, it is specified that if a cheque is dishonoured due to insufficient funds in the Customer’s account, the accountholder will be prohibited from issuing further cheques across the banking system. This prohibition will be recorded in Banque de France’s files until the payment is regularized for a period of up to five years.
When the Bank has to notify the Customer of an abnormal operation of its account, it may do so by mail sent to the Customer’s last known address, by fax, telephone or e-mail to a machine the Client usually uses in its relations with the Bank. It is understood that this notice shall serve as a warning as to the consequences, referred to above, of insufficient funds.
2.2.3Receiving the Customer’s orders
Generally, except when the Customer may, under a special agreement, send its Orders otherwise, LCL shall only accept original orders given in writing in paper form and bearing the handwritten signature of a duly empowered officer appearing on its face to be in conformity with the specimen in our books.
As a consequence of the foregoing, in the absence of instructions given in said form and unless otherwise agreed, the Bank may defer the execution of an order until it receives confirmation of the latter via any means it shall deem appropriate.
If LCL exceptionally accepts to perform an order sent by the Client in any other form, the Customer shall indemnify and release LCL of all consequences that may result from the use of any means other than the original paper document bearing a handwritten signature, particularly due to a technical failure, an error, insufficient or imprecise instructions such as abusive or fraudulent use of the means of transmission.
The foregoing provisions also apply to any instruction letter from the Client ordering the Bank to issue or cause to be issued an off-B/S commitment.
2.3
Provisions relative to certain payment instruments
2.3.1ChequesCheque forms
These are issued crossed and non-endorsable except in favour of a bank or a similar institution.
Even in the absence of a prohibition to issue cheques, the Bank is authorized under applicable laws and regulations to refuse to issue cheques other than those for withdrawing cash over the counter and to ask at any time the account holder to return all the blank cheque in its possession.
It is the Customer's interest to ensure that cheque books are kept and used only by itself or its duly authorized representatives. Failing this, it shall be liable in case of fraudulent use.
Stopping payment on cheques
Under the provisions of article L131-35 of the Monetary and Financial Code, stopping payment on a cheque is strictly limited to the following cases:
• the cheque is lost or stolen, • fraudulent use of the cheque,
• protection, court-ordered reorganization or liquidation of the holder of the cheque.
The Customer shall be liable to criminal penalties if it stops payment on a cheque for any other motive. Any stop payment instruction must be confirmed forthwith to the Bank in writing.
The Bank cannot refuse to pay a cheque when the stop payment order is based on a reason other than those specified above or until it has received a written confirmation specifying the reason for stopping payment.
2.3.2Drafts
The Bank shall pay drafts upon the Customer’s formal instructions only. The Customer must give its instructions sufficiently ahead of the due date of the drafts, in writing or via any other mutually agreed means, notably including telematic or electronic means.
2.3.3Payment services
2.3.3.1 General
Under the meaning of the Agreement.
Payment services are those listed in article L314-1 of the Monetary and Financial Code. Payment services are mainly cash payment and withdrawal services, payments and withdrawals by bank card, payments and collections via transfers, direct debits, interbank payment orders (TIP) and telepayments.
The providers of payment services are payment and credit institutions.
“Working Days” are business days in the meaning of article L133-4 of the Monetary and Financial Code.
The Bank’s Business Days are any day from Monday to Friday, except for legal holidays, Good Friday and Boxing Day and for the days on which the interbank exchange systems are not operating.
If an execution date falls on a day which is not a working day, it shall be deferred to the next following Working Day. For technical reasons the use of some services is subject to cut off times. The latter are specified, when applicable, in the terms and conditions relative to the payment services concerned.
Regarding operations relative to payment services expressed in euros or in any other currency of a member state of the European Economic Area (EEA), the value date of operations debited to the account cannot be prior to the date of the debit to the account and the value date of operations credited to the account cannot be later than the Working Day on which the Bank was credited.
The “Exchange rate” is determined by the Bank according to a daily fixing price procedure based on the Bank’s overall position for the currency in question. The rate is recorded on the date of receipt of the order or, if necessary, the day after the date of receipt. The Customer accepts all foreign exchange risks due to variations in the rate of the currency in question.
SEPA (Single Euro Payments Area) includes the EU member countries plus Norway, Iceland, Liechtenstein, Switzerland and Monaco. SEPA means of payment (bank cards, transfers, direct debits) make it as easy to pay in one’s home country as in the other SEPA countries. In application of European Regulation (EU) No. 260/2012, they will definitively replace domestic payment instruments in the different SEPA countries on 1 February 2014.
Some payment instruments have built-in customized security systems using whatever technical device assigned by the Bank to the Customer for use in connection with a payment instrument. This system, which is specific to the Customer for identification purposes, is under the Customer’s responsibility.
The Customer shall take all reasonable steps to protect the security of its payment instrument.
In case of loss, theft or misappropriation of any such payment instrument, the Customer must notify LCL thereof forthwith subject to a confirmation in writing.
In case of an unauthorized or improper operation, the Customer must challenge it in writing without delay. Whatever the case, no such complaint shall be taken into account thirteen (13) months from the date on which the account is debited.
2.3.3.2 Over-the-counter operations
The Customer may make cash payments and withdrawals over the Bank’s counters.
In case of such payments, the Bank checks that tendered cash is genuine and valid before posting it into the accounts. Cash payments may be made either at LCL branches providing such services or at dedicated ATMs using a card. Evidence of the deposit and of its amount results from the inventory made by the Bank or by its agents.
The person who makes an over-the-counter cash payment or withdrawal at a branch or who asks for an express deposit card to make deposits at ATMs must previously show valid ID.
Amounts paid in by the Customer are credited to its account the day on which the funds are credited to the Bank’s account.
Amounts withdrawn by the Customer are debited from its account the day on which the funds are debited from the Bank’s account.
2.3.3.3 e-cash operations
Operations performed with payment and withdrawal cards are subject to specific agreements between the Bank and the Customer, whether the latter acts as cardholder or merchant.
2.3.3.4 Transfers issued
Conditions of execution of transfers
Within the timeframe agreed upon below, the Bank shall execute transfer orders sent by the Customer either in writing or under mutually agreed technical conditions, IT, computer to computer or electronic form, stating the references of the debit account, the amount, the currency of payment and the banking particulars of the beneficiary or beneficiaries. Until 31 January 2014, banking particulars to be used are the International Bank Account Number (IBAN) and the bank’s Bank Identifier Code (BIC).
Starting 1 February 2014, transmission of the BIC code will become optional for national operators. However if the Customer provides a BIC for this type of operation, however, the Bank will consider that transmission of said BIC constitutes an express order without modification for executing the transfer. The Bank cannot be held responsible if the BIC supplied by the Customer is erroneous.
The Bank shall process the Customer’s transfer orders based on the banking particulars of the beneficiary as stated in the order and shall not have to check the beneficiary’s banking ID. If these details are inaccurate, the Bank shall not be liable for the improper execution of the transfer. At the Customer’s request, however, it shall endeavour to recover the funds involved in the payment.
To execute a transfer, the Bank can go through another institution when it does not maintain a relationship with the beneficiary’s payment service provider.
If the Bank refuses to execute a transfer order, it shall notify the Customer thereof, giving the reason therefor, unless prohibited by law. This notice is given in writing in any form whatsoever or using the communication vectors agreed upon with the Customer.
Transfer execution deadlines
The timeframe for the execution of transfers starts to run upon receipt of the order until it is credited to the beneficiary’s payment service provider. Regarding transfers sent in advance, the date of receipt of the order corresponds to the date of execution requested by the Customer.
Transfer orders expressed in euros to a payment service provider in the European Economic Area are executed within a maximum of one (1) Working Day from their date of receipt by the Bank. This maximum execution the timeframe is extended to two (2) Working Days for orders sent in paper form.
Transfer orders within the European Economic Area expressed in the currency of one member state other than the euro shall be executed within a maximum of four (4) Working Days from their date of receipt.
Transfer orders in favour of a payment service provider outside the European Economic Area as well as those issued in a currency of a state outside the European Economic Area are executed within the best possible timeframe allowing for their special characteristics.
The Bank may have to defer the transfer of funds to the receiving payment service providers as a consequence of the checks it is required to perform under the provisions of regulations in force, particularly concerning cross-border fund flows. The execution time stated in the “Rates applicable to the main operations by Corporate and Institutional Customers” means subsequent to such checks.
The Bank is responsible for the proper execution of the transfer unless it can show evidence that the beneficiary’s payment service provider has received the transfer amount within the above specified deadlines and excepting cases of force majeure.
Cost sharing
For transfers in favour of an account within the European Economic Area in euros or in the currency of an EEA member state which do not require a monetary conversion, LCL and the beneficiary’s payment service provider each charge their own expenses (SHARE expense option) and it is not possible to give instructions to the contrary.
Information
Once these transfers have been made, the Bank provides the Customer with the following information: the name of beneficiary, the total amount of relative costs, the amount and the date of debit to the account and for cross-border transfers an execution slip, if appropriate, to specify the rate of exchange.
Cancelling or putting transfer orders on hold
Any transfer order may be cancelled or suspended by the Customer upon written request sent to the Bank and received by the latter at the latest the Working Day immediately before its scheduled execution date. After this date, the order is irrevocable.
2.3.3.5 Transfers received
When receiving a transfer, the Bank is only required to check that the Customer’s bank particulars are accurate.
Received transfers expressed in the currency of a European Economic Area member state are available on the day of receipt by the Bank except for those involving a monetary conversion.
The checks that the Bank must perform under the provisions of regulations in force, notably including for cross-border fund flows, may lead the Bank to defer crediting the amounts to the Customer. The execution time stated in the “Rates applicable to the main operations by Corporate and Institutional Customers” means subsequent to such checks.
Transfers received in the currency of a country outside the European Economic Area are available within the best possible timeframe in view of their specific characteristics.
The following information is provided in connection with these transfers: the issuer’s name, relative costs, if appropriate, the amount and the date of credit to the account and for cross-border transfers an execution slip, if appropriate, to specify the rate of exchange.
The Bank can reverse to the debit of the Client’s account the amount of a received transfer when the latter has been issued or credited by error or when its amount is incorrect.
2.3.3.6 Direct debiting – On the debit side
Domestic direct debit (ADP)
The Bank executes the direct debits initiated by issuers to which the Customer has previously given a duly completed debit authorization together with its bank particulars. Unless the amounts of the direct debit are fixed in advance, the issuer of the direct debit notifies the Customer ahead of the debit date of the amount thus to be debited.
The Customer also authorizes LCL to pay any direct debit presented by a creditor who is the successor in interest of a creditor in whose favour it had issued its authorization, including following a merger or a partial sale of assets.
In the event the Bank refuses to pay a direct debit, it notifies the Customer thereof giving the reasons therefor, unless forbidden by law. This notification is made via any means in writing or made available using the means of communication otherwise agreed with the Customer.
Any payment order sent under a direct debit authorization may be revoked at the Customer’s request in writing to be received by LCL three (3) Bank Business Days at the latest before the scheduled debit date.
The Customer may also ask LCL to cancel its direct debit authorization in favour of a creditor. The latter shall then no longer be able to collect its direct debit orders.
The Customer may ask LCL to repay any direct debit made under a valid direct debit authorization during the eight (8) weeks following the date of the debit to its account. This time period is extended to thirteen (13) months for an operation it has not authorized. The Bank shall have no liability whatsoever for the consequences thereof in the obligations between the Customer and the beneficiary of the direct debit.
If the dispute relates to an unauthorized operation, the Bank shall refuse to execute subsequent operations.
In accordance with European Regulation (EU) No. 260/2012, national direct debit may no longer be used as of 1 February 2014. It will be replaced by SEPA direct debit, including for operations performed in France.
SEPA Direct Debit (SDD)
SDD is a direct debit in euros available within the SEPA.
SDD requires prior signature by the debtor, here, the Customer, in favour of the creditor (Creditor) of a SDD authorization (the Mandate). By signing this Mandate, the Customer authorizes the Creditor to issue SDD debiting its account and the Bank to debit its account.
The Creditor keeps in its records the duly signed Mandate which, unlike the domestic direct debit authorization (ADP), is not sent to LCL.
The Creditor must provide the Customer with its SEPA Creditor Identifier (ICS) as well as the Unique Mandate Reference (RUM) being specified that this information alone enables the Bank to identify the SDD.
The Creditor must notify the Customer in advance of each SDD specifying the amount and the due date in accordance with agreed upon conditions.
SDD can be used for recurring as well as one-off payments.
The Customer may refuse any charge of SDD to its account. In this case, it must notify LCL thereof, which shall systematically reject any SDD presented on its account.
Any revocation of an SDD mandate must be sent by the Customer to the Creditor directly. Such revocation can also be notified to LCL in writing three (3) Bank Business Days at the latest before the date of debit.
The provisions relative to the revocation of a payment order and to the time period for challenging the direct debit specified in the paragraph “domestic direct debit (ADP)” also apply to SDDs.
Any request or complaint relative to a SDD sent to LCL must specify the relevant SEPA Creditor Identifier (ICS) and the Unique Mandate Reference (RUM).
In the event the Bank refuses to pay a SDD, it notifies the Customer thereof giving the reasons therefor, unless forbidden by law. Such notification is sent via any means in writing or made available using the communication vectors otherwise agreed upon with the Customer.
Migration from the domestic direct debit authorization (ADP) to SEPA direct debit (SDD)
SEPA direct debit will replace domestic direct debit (ADP) no later than 1 February 2014. Any creditor who decides to use SEPA must previously notify the Customer thereof and provide its SEPA Creditor Identifier (ICS) and its Unique Mandate Reference or References (RUM) under the agreement or agreements entered into between them.
The Customer may refuse to accept payment via SDD. In such cases, the Customer shall agree directly with the Creditor on the alternative method of payment.
If the Customer accepts payment via a SDD, when it has already given the domestic direct debit authorization (ADP) on its account for the Creditor, it shall not have to sign a SDD authorization, as its acceptance of the domestic direct debit (ADP) is valid for the SEPA direct debit.
Likewise, the Customer also benefits by the same principle for stop payment instructions previously sent to the Bank. As a consequence, it is not necessary to renew stop payment instructions sent prior to the migration.
If a stop payment instruction had been given for a creditor with whom the Customer has entered into more than one contracts, any SDD in favour of said creditor shall be rejected. As a consequence thereof, to maintain a direct debit relative to a particular contract, the Customer must contact its LCL Corporate branch.
2.3.3.7 Direct debit – Biller’s collections
In this situation, the Customer - who is the creditor - issues an order to charge the direct debit to the debtor’s account (the “Debtor”).
Domestic Direct Debit (ADP) and SEPA direct debit are two automated means of payment available to collect recurring or one-off commercial invoices expressed in euros only. They leave the Customer the initiative of collecting its receivables from its debtor. ADP can be used between two accounts open within the French national territory and in the Principality of Monaco until 31 January 2014.
Starting on 1 February 2014, only SEPA direct debit can be used between two accounts opened within the SEPA.
Collections of Domestic Direct Debit (ADP)
LCL collects direct debits in the Customer’s favour. The use of direct debit is conditional upon the creditor having a single “MNE” Domestic Issuer Number per SIREN assigned by Banque de France at LCL’s request.
To issue a domestic direct debit authorization (ADP), the Client must previously have obtained a direct debit request and the direct debit authorization together with the banking details of the debtor, which must both be signed by the Debtor. The direct debit request must be retained by the Customer, as creditor.
The direct debit authorization (ADP) must be sent by the Customer to the Debtor’s bank to enable it to pay direct debit sent for collection.
The Customer must also notify the Debtor of the amounts to be charged prior to each debit date by providing invoices, payment or repayment schedules or via any other agreed means, particularly to give it the possibility of challenging the debit in case of disagreement.
Since domestic direct debit collections are under usual reserves, the proceeds shall finally accrue to the Client only at the end of thirteen (13) months from the date of the charge to the Debtor’s account.
Collection of SEPA direct debit
Please note the following provisions only concern standard SEPA direct debit (SEPA Core Direct Debit or SDD Core) which is available to both natural persons and legal entities.
The Customer acknowledges that it is aware of the methods and conditions of operation of the SEPA direct debit which are binding upon each user of this form of payment and agrees to duly observe them. The SEPA regulations to which these general terms and conditions refer are available and regularly updated on the websites of the Comité Français d’Organisation et de Normalisation Bancaires (CFONB) (http://www.cfonb.org) and of the EPC (European Payment Council) (http://www.europeanpamentscouncil.eu).
LCL attends to the collection of SEPA direct debits in the Customer’s favour.
Collection of SEPA direct debits are carried out by electronic data interchange (EDI). These interchanges are governed by a special agreement signed between LCL and the Customer depending on the communication channel used by the Customer.
The Customer and the Debtor are each identified individually when processing the SEPA direct debit by their IBAN / BIC pairs, which notably appear on the summary of banking particulars (RIB) provided by their respective banks.
Starting 1 February 2014, transmission of the BIC code BIC will become optional for national operators. If the Customer provides a BIC for this type of operation, however, the Bank will consider that transmission of said BIC constitutes an express order without modification for executing the transfer. The Bank cannot be held responsible if the BIC supplied by the Customer is erroneous.
The use of SEPA direct debit is subject to the Customer, as creditor, having a single SEPA Creditor Identifier (ICS) per SIREN assigned by Banque de France at LCL’s request. To issue a SEPA direct debit, the Customer must previously have had its Debtor sign a single “SEPA direct debit Mandate” form (the “Mandate”) and have issued to it the Single Mandate Reference (RUM) which it has itself assigned to the Mandate. The specimen of the Mandate must be in conformity with the format required by the regulations as indicated in the CFONB’s brochure, “Le prélèvement SEPA – SEPA Core Direct Debit”. In the Mandate, the Customer must indicate the name or business name that is to appear in the SEPA direct debit orders and in the information returned to the Debtor.
When the Customer enters into several contracts with one and the same debtor, a specific Mandate must be signed for each individual contract. The Customer can only issue one single SEPA direct debit under a one-off Mandate.
The SEPA Creditor Identifier / Single Mandate Reference pair ensures the single identification of the contract within SEPA and must be stated on each direct debit sent for collection.
Through the Mandate the Debtor authorizes the Customer to issue SEPA direct debit orders against its account and its bank to charge its account with the amount of presented orders.
The Customer cannot initiate payment without this authorization from the Debtor.
The Customer is required to provide his Debtor with contact information enabling the Debtor to contact the Customer in case of a modification to or revocation of the Mandate or of a claim.
The Mandate, duly filled in and signed by the Debtor, must be kept by the Customer under its sole responsibility, so as to be in a position to prove its existence if necessary, notably at LCL’s request.
Any change in the Mandate’s data, at the Customer’s initiative, must be notified to the Debtor. Any change at the Debtor’s initiative must be notified by the Debtor to the Customer.
The Customer agrees to update its SEPA direct debits if the Mandates are changed by the Debtor or by the Customer in keeping with the procedure described in the CFONB. These changes in the data must be transmitted by the Customer via LCL to the Debtor’s bank in the following SEPA direct debit order.
The Customer must keep all proof and the history of these changes so as to be in a position to meet any requests from the Debtors’ banks.
Any change relative to the Customer’s identity must be notified to LCL by the Customer himself. The latter particularly undertakes to notify LCL in case of merger, amalgamation, sale of assets or internal reorganization involving a change in the creditor identifier (ICS) and to comply with the procedures and deadlines laid down in the CFONB.
The Customer must cease to issue any SEPA direct debit order in case of cancellation of the Mandate by the Debtor or when no direct debit has been made in any thirty-six (36) month period. To issue new SEPA direct debit orders under the concerned contract, the Customer must have the Debtor sign a new Mandate which shall include a new Single Mandate Reference.
Failing a Mandate, or if the latter is cancelled or has expired, a direct debit shall be deemed to be made by the Customer without the Debtor’s agreement, and shall consequently be regarded as an unauthorized operation.
Unless expressly agreed otherwise, the Customer must send the Debtor prior notice no less than fourteen (14) calendar days before the due date of each SEPA direct debit. Such prior information may be provided through an invoice, a payment or repayment schedule, a notice or any other agreed means, notably to give the Debtor the possibility of challenging the payment in case of disagreement. This information must at least include the ICS/RUM identification as well as the amount and the due date.
The rules relative to the time period for the interbank exchange of a SEPA direct debit vary according to the type of operation:
The direct debit order must be received by the Debtor’s bank no more than five (5) Bank Business Days in the case of a first operation or a one-off operation for a given amount (identified by the Single Mandate Reference) or two (2) Bank Business Days before the due date for recurring operations.
LCL may have to cancel a SEPA direct debit, whether before or after the interbank payment, possibly upon request by the Customer. These operations must remain exceptional.
Given the regulations currently in force, collection of SEPA direct debits shall not become definitive for the Creditor until after thirteen (13) months from the date upon which the Debtor’s account is debited, increased by a period of 30 calendar days (maximum duration of the challenge procedure), to which 4 business days may also be added, corresponding to the time for interbank exchanges.
- If direct debits are rejected
SEPA direct debit orders may be rejected at the initiative of the Debtor’s bank (lack of funds, account closed, deceased debtor, etc.) before or after interbank payment and crediting to the Customer’s account.
- If requests for reimbursement are made by the Debtor
Within eight (8) weeks after the date on which the Debtor’s account is debited, the Debtor may challenge any operation, whether authorised or not, and may ask the bank for reimbursement. The Debtor’s bank then transmits the request for reimbursement to LCL, which is required to accept the request for reimbursement of the SEPA direct debit.
- If operations are challenged by the Debtor
After eight (8) weeks and within a period of thirteen (13) months from the date on which the Debtor’s account is debited, the Debtor may only challenge an operation on the basis of unauthorised operations within the meaning of article L.133-23 of the Monetary and Financial Code. The Debtor’s bank is required to verify the existence of consent given by the Customer, as the case may be, by implementing a research procedure.
For this, the Customer agrees to make the Mandate and/or proof of the existence of the Mandate available to LCL if the Debtor’s bank requests it from LCL.
Any SEPA direct debit returned unpaid further to a challenge by the Debtor’s bank to LCL shall be reversed from the Customer’s account including compensating interest, if any, claimed by the debtor’s bank.
Migration from the national direct debit (ADP) to the SEPA direct debit (SDD)
In application of European Regulation (EU) No. 260/2012, migration of domestic direct debit (ADP) to SEPA direct debit must be completed no later than 1 February 2014.
As of said date, the Customer must have undertaken migration of all domestic direct debits under way or have had the SEPA direct debit mandates signed by the Debtors in order to continue performing direct debits.
The Customer may, at its own initiative, convert the domestic direct debit (ADP) processes already agreed with its Debtors into SEPA direct debit (hereinafter the “Migration”). In this case, the Customer must observe all the applicable regulatory requirements, notably as specified in the CFONB’s “Migration from the domestic direct debit to SEPA direct debit” brochure.
As part of the Migration, it shall not be necessary for the Customer which currently charges the Debtor via direct debit (ADP) to have the Debtor sign again for a SEPA direct debit mandate, since the agreement given previously for domestic direct debit (ADP) is valid for collections via SEPA direct debit.
Likewise, the Debtor’s stop payment orders under domestic direct debit continue to be valid when the Customer switches to SEPA direct debit.
The Customer shall previously notify the Debtor of the date from which it shall substitute SEPA direct debit for domestic direct debit. Such notice shall be sent via any means at the Customer’s convenience as soon as possible and in any event at the latest fourteen (14) calendar days before the due date of the SEPA direct debit unless otherwise agreed between the parties.
On this occasion, the Customer shall particularly provide the Debtor with: its SEPA Creditor Identifier (ICS), the Single Mandate Reference or References assigned to each of its contracts, the particulars (contacts) to which the Debtor is required to send its request for change or cancellation of the Mandate or its complaints relative to SEPA direct debits.
When the Migration is performed for a given contract, the Customer must cease to issue domestic direct debits (ADP) in connection with the contract in question.
The first SEPA direct debit after the switch from domestic direct debit must be presented as the first operation under a mandate and must consequently be exchanged between banks five (5) Bank Business Days at the latest before its due date.
From a technical viewpoint, the first SEPA direct debit must conform with the relevant technical Appendix in CFONB’s “Migration from domestic direct debit to SEPA direct debit” brochure.
From the Customer’s date of migration to SEPA direct debit, the rules laid down in the CFONB Brochure “Le prélèvement SEPA – SEPA Core Direct Debit” apply in replacement of those in the “Le prélèvement national” (Domestic Direct Debit) Brochure.
Joint provisions of domestic (ADP) and SEPA direct debit
LCL handles the collection of direct debits in the Customer’s favour for the required due date so long as the Customer complies with the standards relative to the transmission of direct debit orders and the orders are sent within the deadlines specified in the “Rates applicable to the main operations by Corporate and Institutional Customers”.
In the event LCL is not in a position to execute the direct debit orders, notably if the data provided cannot be properly used or do not conform with the standards, LCL shall notify the Customer of its refusal, giving the reason therefor. This information is notified to the Customer via any agreed means.
If the due date stated by the Customer in its remittance shows an anomaly (e.g if the due date of the direct debit is before the date on which the relevant orders are given to the Bank…) the due date is automatically calculated again by the Bank to enable the execution of the Customer’s collection at the earliest, i.e. the first business day technically possible allowing for the interbank exchange time.
LCL executes the direct debits sent in by the Customer under the jointly agreed technical conditions, stating the reference of the credit account, the amounts of operations as well as the banking particulars of the recipients in accordance with banking standards in force.
The Bank acts as the account keeper and payment service provider, and has absolutely nothing to do with the underlying obligations between the Customer and the Debtor.
Consequently, the Customer is hereby informed that direct debit operations are executed “under usual reserves” and may give rise to a reversal of the debit to the account under the conditions indicated below.
The Customer accepts dishonoured and rejected items returned to LCL by the Debtor’s bank.
When a direct debit is returned dishonoured, LCL immediately charges back the amount from the Customer’s account or from a specific account designated by the Customer at the latter’s option.
The Customer shall contact its Debtor to obtain payment of the amounts due to it. Any dispute in connection with the Contract must be settled directly between the Customer and its Debtor.
In the event the direct debit collection service is discontinued for any reason whatsoever, the Customer shall owe LCL the amount of collections returned unpaid. The Customer hereby undertakes to repay the Bank via any means or at the Bank’s request to issue a guarantee in the latter’s favour to cover the risk related to these dishonoured items, if any.
2.3.3.8 Interbank payment orders (TIP) to the debit of the account
The Customer may use this type of service at the request of a creditor organization which shall send the Customer an Interbank payment order (TIP) to this purpose, which the Customer must return duly dated and signed to authorize debits to its account.
In the event the Bank refuses to pay a TIP, it notifies the Customer thereof, giving the reason therefor, unless prohibited by law. This notice of refusal is sent in writing in any form whatsoever or via the communication vectors otherwise agreed upon with the Customer.
2.3.3.9 TIPs sent for collection
LCL collects TIPs in favour of the Customer. The use of the TIPs is subject to the Customer’s having a single national issuer number (NNE) per SIREN assigned by Banque de France at the Bank’s request.
LCL processes the collection upon receipt of the TIP remittance in accordance with the applicable interbank standards.
Since TIP collections are under usual reserves, they only accrue to the Customer upon expiry of a thirteen (13) month period from the date of the debit to the debtor’s account.
When a TIP is dishonoured, LCL debits immediately the amount from the Customer’s account or from a specific account at the Customer’s option.
In case of discontinuation of the service for any reason whatsoever, the Customer owes the Bank the amount of dishonoured remittances. The Customer agrees to reimburse the Bank via any means or at the Bank’s request to provide a guarantee in the latter’s favour to cover the risk related to any dishonoured items.
2.3.3.10 Telepayment
The Customer can use the Telepayment service as either creditor or debtor under the same conditions as for the direct debit service. As creditor, the Customer must comply with applicable interbank standards regarding the operation of the service (use of national issuer number (NNE), execution of an interbank telepayment use agreement with the Bank, collection of debtors’ approval requests, etc.)
The Telepayment service rests on the mandate given by the debtor to the Bank to make payments in a creditor’s favour through the debit of its account up to the amounts indicated by the creditor. The debtor approves each payment before it is made via its own means of telecommunication.
The provisions relative to revocation, to the time period for filing complaints and the termination of service applicable to direct debit shall also apply to Telepayments.
2.4
Provisions relative to accounts in foreign currencies
Under the Agreement, the Customer can open accounts in euros and in quoted and freely transferable foreign currencies. The functionalities of these accounts in foreign currencies are not exactly identical to those available with accounts in euros. Likewise, accounts in foreign currencies do not give access to the full range of banking services available with accounts in euros. The Bank meets its obligations vis-à-vis the Customer in the currency in which the account is denominated.
The Bank’s assets corresponding to the Customers’ accounts in foreign currencies are held with correspondents located either in the country of origin of the currency in question or in another country. The Customer alone therefore bears the economic and legal consequences which could affect assets in the country of the currency or in the country where the funds are deposited following measures taken by said country or by other countries, notably in case of embargo, forbidden transfers or unavailability of services. and indemnifies the Bank and rejects it liability for any consequences which might arise therefrom.
The Customer gives mandate to perform an exchange operation:
- when it requests LCL to initiate from its account an operation in a currency other than the account’s currency of denomination, - when it is the beneficiary of an operation expressed in a currency other than the account’s currency of denomination,
unless specific instructions are given by the Customer.
Exchange operations are performed by the Bank according to a daily fixing price procedure based on the Bank’s overall position for the currency in question. The rate is recorded on the date of receipt of the order or, if necessary, the day after the date of receipt. The Customer accepts all foreign exchange risks due to variations in the rate of the currency in question.
2.5
Statement of account – Execution slip – Invoice – Approval of operations
The statement of account itemizes operations recorded on the account during a determined period or sequence and shows the resulting balance.
It is sent to the Customer according to a frequency agreed upon in the particular conditions and can also be sent computer to computer or via electronic means.
Through computer to computer or electronic account reporting services, the Customer may be informed of entries posted to the account even before they are validated by the Bank. These entries have a provisional character.
An execution slip is sent for certain operations posted to the account.
Fees and charges are specified in an invoice.
The statement of account, the execution slip and the invoice are in paper form and at the Customer’s request for some of them, in electronic form.
The Customer must send any comments it may have within the 30 (thirty) calendar days following the date of the credit or debit advice or, failing this, the date of the statement of account or of the invoice. Failing any comment in writing on its part, all the entries, operations, fees and charges shall be deemed to be definitively approved whithout prejudice to the legal or regulatory provisions providing recourse to the Customer. The statement of account and the invoice shall be retained by LCL for 10 years.
3 - FINANCIAL TERMS
3.1 Value dating of operations
Each operation posted to the account has two dates:
lthe date of entry into the accounts (the “date”) is the date on which the operation is recorded in the books,
lthe value date (“value”) is the date taken into account for the calculation of interest in accordance with the “Rates applicable to the main operations by Corporate and Institutional Customers”.
The value date is a component of the charge for services.
The value dates are specified in the “Rates applicable to the main operations by Corporate and Institutional Customers” issued to the Customer and available from its LCL Corporate Branch, on request.
3.2 Statement of account – Interest and charges
The account is balanced every calendar month or quarter, unless a different frequency is specified. Operations are grouped by value date and the resulting daily value balances are determined.
Each value-adjusted debit balance is multiplied by its term in days to provide the debit balance. Debit balances generate debit interest and an overdraft fee calculated as follows.
ldebitor interest equals: total debit days x rate x 1
100 360
lthe overdraft fee is calculated on the peak overdraft in each month.
Debit interest, overdraft fee and other fees and charges which may be charged in certain specific conditions of use of the overdraft together form the bank charges. Bank charges are charged to the account with value as of the first day of the period immediately following that concerned by the calculation. The calculation of interest, fees and commissions moreover specifies transfer fees and sundry expenses (balancing charges particularly) due whatever the balance – credit or debit – of the account.
Upon the monthly or quarterly account balancing, the Customer receives a “statement of interest, fees and commissions” and the “calculation bases” indicating the main elements used in calculating of the bank charges. The conditions applicable to debit balances, including any, which are specified in the particular conditions, may change at any time, subject to a fifteen-day prior notice sent via any appropriate means (including subject to special agreement via e.mail). Upon the expiry of this time period, the change is deemed to have been accepted by the Customer. Whatever the case, no claim relative to the conditions applied shall be accommodated after the fifteenth day from the date on which the calculation of interest is sent.
3.3 Financial terms applicable to services and certain operating credits
3.3.1Services
The financial terms and conditions applicable to usual services are specified in the “Rates applicable to the main operations by Corporate and Institutional Customers” provided to the Customer when the account is opened. This document can also be sent to the Customer on request by LCL Corporate Branches. These terms and conditions may change at any time. The terms and conditions for more specific services are provided to the Customer on request. Most of the time, they are subject to a specific agreement. Credit interest, when authorized by the applicable regulations, and the terms and conditions for standard services are also provided to the Customer via any other means in accordance with the provisions of para-graph 6 below. They are liable to change without prior notice.
3.3.2 Discount
Discounting conditions are agreed upon with the Customer. Apart from the fixed minimum specified in the “Rates applicable to the main operations by Corporate and Institutional Customers” interest is calculated on the basis of the number of days (subject to a minimum of 10) included between:
lthe date on which the drafts are remitted for discounting, excluded,
land the due date of the draft (if appropriate, deferred to the next following Bank Business Day), included. The number of days is increased by one banking day for a 360 day year.
3.3.3 Cash facilities
The terms and conditions are agreed upon with the Customer. Unless otherwise agreed, interest is calculated at the nominal rate on the basis of the number of days the facility is used increased by one bank day for a 360 day year. Interest may be charged upfront or on the facility’s due date with value as of the due date. When the due date falls on a day which is not a Bank Business Day, it is deferred to the next immediately Bank Business Day, except for days when the interbank exchange systems are closed.
3.4 Annual Proportional Interest Rate
The Annual Proportional Interest Rate (“TEG”) is notified to the Customer.
3.4.1Overdraft
The TEG for overdraft interest and charges (including debit interest, overdraft fee and any other commission that may be charged in connection with the overdraft) is specified on each bank statement account balancing date. A daily rate is calculated equal to the total overdraft interest and charge multiplied by 100 and divided by the total number of days in debit. The annual TEG is calculated by multiplying the daily rate by 365.
3.4.2Discount
The TEG on the statement sent to the Customer is calculated on the same bases as overdraft interest and charges by the so-called “numbers” method based on the following formula:
Statement TEG = total interest x 36,500 total numbers
The "number" which corresponds to each draft is equal to the gross amount of the draft – minus interest – multiplied by the period.
Low value payment drafts (currently less than €800) are excluded from TEG calculation and subject to the minimum flat fee indicated in the “Terms and Conditions applicable to the main operations by Corporate and Institutional Customers”.
3.4.3Other credits
The TEG is a proportional rate obtained by multiplying the rate of the period by the existing ratio of the duration of the calendar year to that of the period. The period rate is calculated on an actuarial basis using the unit period that corresponds to the frequency of payments made by the borrower.
4 - TRANSFERRING THE ACCOUNT TO ANOTHER BRANCH OF THE BANK
LCL has opted for the invariant identification system for its Business Customers’ accounts.
This provides the advantage of enabling accounts to be transferred from one branch to another without changing account numbers. Thus, cheque books, cards and the domiciliation remain valid.
The transfer must be approved by the branch which is to keep the account.
Unless otherwise expressly specified, all agreements entered into with the initial branch, including this Agreement, remain applicable at the new branch.
5 - CLOSING THE ACCOUNT AND TERMINATING FACILITIES
5.1 Term of the Agreement
The current account agreement is entered into for an unlimited period of time. The current account may be closed at any time either at the Customer’s request or at the Bank’s initiative subject to a one-month prior notice, this time period being extended to two months when the account was opened at Banque de France’s request. During this period, LCL shall continue to perform everyday operations and to provide cash services subject to there being sufficient funds in the account.
However, if a company is liquidated or sold as part of a recovery plan, the account shall be closed automatically.
When a judgment ordering insolvency proceedings or reorganization is handed down, the account undergoes full and final settlement. All the debts which arose prior to the judgment shall be applied against the resulting balance. Where relations are continued after the judgment, operations are posted to a new account number.
5.2 Termination of facilities
If the Bank grants facilities for an unlimited period of time, other than one-off facilities, it may terminate said facilities at any time or not renew them, subject to a 60-day prior notice. This period will run from the date on which LCL sends a notice of termination to the address provided for sending bank statements.
5.3 Closing the current account
Unused cheques and cards must be returned when the account is closed.
The balance may only be withdrawn once outstanding operations have been settled and the Bank has issued a closing statement. To settle outstanding operations, LCL may:
lreverse entries relative to dishonoured drafts and other remittances, while keeping the drafts that it holds when the account does not have sufficient funds,
lcharge to the account any amounts due for indemnities, endorsements or other guarantees,
land, generally, debit any and all amounts that may be due by the Customer under any of its commitments prior to the request to close the account.
Whatever the reason for closing the account, the balance, if negative, shall continue to serve interest, fees and charges. These will be calculated according to the latest contractual conditions increased by three points until all amounts due to the Bank have been fully paid or repaid. If, due to late payment, interest is due for a full year, it shall in turn serve interest at the increased rate in accordance with article 1154 of the Code Civil.
5.4 Joint provisions for closing accounts and terminating facilities
Under the provisions of the applicable laws and regulations, LCL may close the account without notice and terminate facilities whether granted for a limited or an unlimited period, if the account holder commits seriously reprehensible behaviour or if its situation is irremediably jeopardized.
If banking relations are broken off, the Customer may turn to the Credit Mediator. To do so, the Customer can find all the necessary information on the website (www.mediateurducredit.fr.) or by calling the “Azur” number (price of a local call) 0810 00 12 10.
6 - GENERAL PROVISIONS APPLICABLE TO ALL ACCOUNTS AND SERVICES
6.1 Changes to services and to the agreement
LCL reserves the right to alter its services, particularly due to changes in technology, laws and regulations and financial procedures or to improve the quality or the security of operations subject to notifying the Customer thereof. Changes to these general terms and conditions shall be effective only when the Customer has been duly notified thereof.
Whatever the case, information shall be deemed to have been given when it can be accessed using electronic media and the Customer has been duly informed of the possibility of accessing it. This applies to the special terms and conditions relative to a service, to prices or to the general terms and conditions effective at any time. If the Customer is unable to use such media, the changes may be sent via any appropriate means (notably including by post, a message on a bank statement or sending a new version of the general terms and conditions). Changes are deemed to have been accepted by the Customer when the latter continues to use banking services once it has received the relevant information.
6.2 Business Affairs Centre and Customer Relations Department
LCL attaches the utmost importance to the quality of its services. Disagreements may always arise, however, and to resolve them as quickly as possible, the Customer has access to 2 successive levels of appeal:
Firstly, the Business Affairs Centre that the Customer works with can answer any questions and provide explanations. If the Customer is not satisfied with the answers provided by the Business Affairs Centre, it may then contact the Customer Relations Department, enclosing with its correspondence a copy of the initial letter to the Business Affairs Centre and the response given, at:
LCL - Customer Relations Department BC 302.02 - 94811 VILLEJUIF cedex
FOREWORD
These provisions relative to investment services (the “Provisions”) are set out according to applicable laws and regulations and particularly those issued by the Autorité des Marchés Financiers (“AMF”).
DEFINITIONS
As used in these Provisions, the following words and expressions have the meaning assigned to them below:
ACCOUNT KEEPING
An activity performed by any intermediary that makes entries in its books recording operations on Financial Instruments for its Customers’ accounts.
INVESTMENT SERVICES
ACCOUNT KEEPING - CUSTODY
An activity carried out by any intermediary referred to in article L. 542-1 of the Monetary and Financial Code, qualified as account keeper and custodian in the meaning of AMF’s general rules.
COMPLEX FINANCIAL INSTRUMENTS
A financial Instrument that is not a Simple Financial Instrument is considered as a Complex Financial Instrument.
CONFIRMATION
Any document or form requested by LCL to obtain the Customer's express agreement on the conditions of execution of an Order or operation.
DURABLE MEDIUM
Any system enabling the Customer to access information sent personally that can be easily referred to in the future for a period of time suited to the ends for which the information is intended and that enables stored information to be reproduced in an identical manner.
EXECUTION POLICY
Description of the way in which Investment Service Providers devise and implement an Order Execution Policy to get the best possible result from their Customers’ Orders in most cases.
FINANCIAL INSTRUMENTS
The Financial Instruments referred to in article L. 211-1 of the Monetary and Financial Code are classified in two categories as follows non-complex Financial Instruments (hereinafter Simple Financial Instruments) and Complex Financial Instruments.
INVESTMENT ADVICE
The Investment Advisory service involves providing customized recommendations to a Customer, either at its request or at the initiative of the advising LCL entity on one or several transactions involving Financial Instruments.
INVESTMENT SERVICES PROVIDER (ISP)
A legal entity whose occupation or usual activity involves providing one or several investment services to third parties and/or investing professionally.
LIQUIDATION
Unwinding of a Position or a set of Positions through a Transaction or a set of Transactions in the opposite direction and bearing on the same quantity of Financial Instruments as the Transaction or Transactions leading to the opening of the Position.
MARKETS
All markets, stock exchanges or other trading systems, whether or not regulated (multilateral trading system), in which Transactions are negotiated and executed in compliance with these Provisions.
Mutual fund (FCP)
An undertaking for collective investment in transferable securities which issues units. A mutual fund does not have legal entity status. Each unitholder has a right of ownership to the assets of the fund in proportion to the number of units owned by it.
ORDER
An instruction given by the Client to LCL to purchase or to sell Financial Instruments on the Markets for its account or to subscribe or redeem UCITS units or shares.
ORDER EXECUTION
The Order Execution service entails entering into buy or sell agreements relative to one or more Financial Instruments for a Customer.
OVERALL POSITION
The sum of all the Positions recorded for the Customer's account(s).
PORTFOLIO MANAGEMENT UNDER MANDATE
Portfolio management under mandate means managing, in a discretionary and customized manner, portfolios including one or several Financial Instruments under mandate granted by a third-party.
