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CODE OF BANKING PRACTICE - February 12, 2001

Preambles Objectives, Principles, Review and Staff Training
Part A Disclosures.
Part B Principles of Conduct.
Part C Resolution of Disputes.
PART A: DISCLOSURES

2.0 DISCLOSURE: TERMS AND CONDITIONS

2.1 A Bank shall provide to a Customer in writing any Terms and Conditions applying to an ongoing Banking Service provided by the Bank to the Customer. Those Terms and Conditions shall:

i be distinguishable from marketing or promotional material;
ii be in English
iii be consistent with this Code;
iv be clearly expressed;
v be provided at the time of or before the contract for the Banking Service is made except where it is impracticable to do so, in which case the Terms and Conditions shall be provided as soon as practicable after the provision of the Banking Service; and
vi draw attention to the availability of the general descriptive information referred to in sections 6.1 and 6.2.

2.2 Any written Terms and Conditions referred to in section 2.1 shall include a statement to the effect that the relevant provisions of this Code apply to the Banking Service but need not set out those provisions.

2.3 A Bank shall include (where relevant) the following in its Terms and Conditions applying to a Banking Service:

i the nature of all Standard Fees and Charges that then apply;
ii the method by which interest, if any, is calculated and the frequency with which it will be credited or debited;
iii the manner in which the Customer will be notified of changes to the Terms and Conditions and changes to interest rates, fees and charges;
iv if appropriate, the fact that more than one interest rate may apply;
v any minimum balance requirement or restriction on depositing money in, or withdrawing money from, an Account;
vi in respect of term deposits:
  1. the manner in which payment of interest and principal will be made;
  2. the manner in which funds may be dealt with at maturity; and
  3. the nature of any charge or variation to an interest rate resulting from a withdrawal in advance of maturity;
vii in respect of a loan to the Customer, the repayment details;
viii the frequency with which statements of Account will be provided;
ix a statement that information on current interest rates and fees and charges is available on request; and
x how a Customer or a Bank may alter or stop a payment service.
3.0 DISCLOSURE: COST OF CREDIT

3.1 A Bank shall make available to a Customer, or a prospective Customer, the interest rates and Standard Fees and Charges applicable to a Banking Service offered by the Bank.

4.0 DISCLOSURE: FEES AND CHARGES

4.1 A Bank shall, before or at the time of providing a particular Banking Service to a Customer for the first time or otherwise on request by a Customer, make available to the Customer a schedule containing the Standard Fees and Charges which currently apply to the Banking Service.

5.0 DISCLOSURE: PAYMENTS SERVICES

5.1 Where a Bank provides a Customer with a direct debit or credit payment service, an automatic payment service or access to an account by means of instruction via telephone, the Bank shall make available to the Customer details of any bank fees or charges applying to the service.

6.0 DISCLOSURE: OPERATION OF ACCOUNTS

6.1 A Bank shall provide to a Customer or prospective Customer for a Banking Service upon request general descriptive information concerning Banking Services, including where appropriate:

i Account opening procedures;
ii complaint handling procedures;
iii the Bank's right to combine Accounts;
iv bank cheques;
v the advisability of a Customer informing the Bank promptly when the Customer is in financial difficulty; and
vi the advisability of a Customer reading the Terms and Conditions applying to the Banking Service.

6.2 A Bank shall provide to a Customer upon request, general descriptive information on:

i the time generally taken for clearing a cheque and how a cheque may be specially cleared;
ii the effect of crossing a cheque, the meaning of "not negotiable" and "account payee only" and the significance of deleting "or bearer" when any of these expressions appear on a cheque;
iii how and when a cheque may be stopped;
iv how a cheque may be made out so as to reduce the risk of unauthorised alteration; and
v the dishonour of cheques, including post-dated and stale cheques.
Part A - Disclosures. This part describes the information which a Bank will provide to a Customer in respect of the Banking Services which the Bank offers to the Customer.

Part B - Principles of Conduct. This part describes certain principles of conduct which a Bank will follow in dealing with its Customers.

Part C - Resolution of Disputes. This part requires Banks to have dispute handling procedures.