code of banking practice

8/3/2019 Code of Banking Practice

1/30

Practice

CODEBanking

incorporating revised section 8:internet Banking

o

FoUrtH edition JULY 2007


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1 introduction

1.1 thiscode

(a) This Code has been prepared by the member banks o the New

Zealand Bankers Association and is eective rom 1 July 2007.

It replaces the Code o Banking Practice which took eect rom 2

December 2002. Compliance by participating banks with the Code

is considered by the Banking Ombudsman through complaint inves-

tigations undertaken rom time to time. Formal review o this Code

by participating banks will be commenced within three years o theeective date. Consultation with the public (including interested

organisations) will take place during the review process. Changes

to banking practice, technology and legislation may also justiy an

interim review and amendment o the Code.

(b) In this Code we, our or us means your bank, you or your

means you the customer.

(c) This Code records good banking practices. We agree to observe these

practices as a minimum standard. This Code is not a complete record

o our relationship with you, as specifc products and services may

have their own terms and conditions. These terms and conditions

may include additional rights and obligations or both you and us.

This Code does not alter or replace those terms in any way.

(d) We will ensure that our sta are aware o the Code and the minimumstandards o good banking practice that are relevant to their area o

work.

(e) Other Codes, Acts o Parliament or internationally accepted banking

standards or practices may apply to products and services sold by us

directly or on behal o another party. We shall comply with all our

legal obligations.

() This Code applies to our relationship with all our Customers.

contents

1 introduction 3

1.1 this code 3

1.2 governing principles and objectives o the code 4

1.3 the banking ombudsman scheme and dealing with complaints 5

2 communication 8

2.1 customer privacy 8

2.2 communication with you 9

2.3 bank disclosure 10

3 productsandservices 123.1 accounts, products and services 12

3.2 payment services 15

4 cheques 17

4.1 cheques 17

4.2 bank cheques 18

5 credit 20

5.1 provision o credit 20

5.2 guarantors and providers o other security 22

6 pinsandpasswords 24

7 cards 26

7.1 cards 26

7.2 liabili ty 28

7.3 merchant card services 30

8 internetbanking 32

9 otherservices 389.1 oreign exchange services 38

9.2 other fnancial services 38

10 statementsandaccountinformation 40

11 appendix 42

11.1 glossary 42

11.2 principal legislation and international banking standards 50

index 52

participatingbanks 56
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(g) IntheappendixtotheCodeyouwillnd:-

aglossarydeninganumberotermsusedinthisCode;

and

principallegislationandinternationalbankingstandards

thatmayaectservicesprovidedbybanksinNewZea-

land.

(h) CopiesothisCodeareavailableatallbankBranchesandonrequest

romus.Theyare alsoavailable romthe NewZealandBankers

Association.The contactdetails or theNew ZealandBankers

Associationareasollows:-

NewZealandBankersAssociation

Level12

GrandArcadeTower

16WillisStreet

POBox3043

WELLINGTON

Telephone:(04)4728838

Facsimile: (04)4731698

Website: www.nzba.org.nz

1.2 governingprinciplesandobjectivesothecode

(a) ThepurposeotheCodeisto:-

(i) recordandcommunicatetoyoutheminimumstandardso

goodbankingpracticethatwewillobserve;and

(ii) maintaingoodbank/customerrelationshipsandcommunica-

tion.

(b) Inordertoachievetheseobjectiveswewill:-

(i) complywiththeprovisionsothisCode;

(ii) provideyouwithtimelyinormation,usingplainlanguage

wherewecan,tohelpyouunderstandhowyouraccountsand

productsorservicesoperate,sothatyoucandecidewhether

theyareappropriatetoyourneeds;

(iii) useourbestendeavourstomakesurethatourbankingsystems

andtechnologyaresecure;and

(iv) actairlyandreasonablytowardsyou,inaconsistentandethical

way.Whatmaybeairandreasonableinanycasewilldepend

onthecircumstances,includingourconductandyours.

(c) Wewillrecognise theneeds o elderly anddisabledCustomers

tohaveaccesstobankingservicesandwewilluseourreasonableendeavourstoenhanceaccesstothoseservicesortheseCustomers.

Ininterpretingreasonableendeavoursorthepurposesothisclause

wewillbeguidedbythedenitionoReasonableAccommodation

ascontainedintheglossary.

(d) Pleaseaskusorclaricationiyoudonotunderstandanyothe

inormationthatweprovide.

(e) Youmaywanttoseekindependentlegalorotherproessionaladvice

relatingtotheproductsandservicesweprovide.Wewillco-operate

withyouradvisersand,onrequest,supplytheinormationtheywill

needtoadviseyouproperly.

1.3 thebankingombudsmanschemeanddealingwith

complaints

(a) TheBankingOmbudsmanScheme

BankssubscribingtothisCodealsobelongtotheBankingOmbudsman

Scheme.TheprimarypurposeotheBankingOmbudsmanisto

reviewandrecommendwaystoresolveyourdisputesthatremain

unresolvedaterconsiderationunderyourbanksinternalcomplaints

procedures.DetailsothisreeSchemeareavailableromusorrom


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theBankingOmbudsman.TheBankingOmbudsmanmay,where

appropriate, reercomplainantsto otherorganisationssuch as the

InsuranceandSavingsOmbudsman,thePrivacyCommissioneror

theHumanRightsCommissioner.ContactdetailsortheBanking

Ombudsmanareasollows:-

OceotheBankingOmbudsman

Level11

109-111FeatherstonStreet

POBox10573

TheTerrace

WELLINGTON

Freephone: 0800805950

Fax: (04)4710548

Email: [email protected]

Website: www.bankombudsman.org.nz

(b) DealingwithComplaints

Wewilloerreecomplaintsreviewproceduresorhandlingcom-

plaintsaboutanyoourproductsandservices.

Iyouhavemadeacomplaintaboutourproductsorservices:-

(i) wewillacknowledgetoyouwehavereceivedyourcomplaint

withinvebusinessdaysoourreceiptoyourcomplaint;

(ii) wewillundertakeareviewunderourowninternalcomplaintsreviewprocedure;

(iii) iyouaredissatisedwithourdecision,wewillinormyou

(usuallyinournalresponsetoyou)thatyoumayreeryour

complainttotheBankingOmbudsmanorurtherconsidera-

tion,andwewillalsoprovideyouwiththecontactdetailsor

theBankingOmbudsman;and

(iv) theBankingOmbudsmanmaythen independentlyreview

yourcomplaintandmakearecommendation.

TheBankingOmbudsmanSchemeTermsoReerencegovernthe

handlingocomplaintsreerredto theBankingOmbudsman or

consideration.

Ourinternalcomplaintprocedureswill:-

(i) bedocumented;

(ii) beaccessibletoyou;and

(iii) provideorthetimelyresolutionocomplaintsinaairand

reasonablemanner.

BrochuresrelatingtoourcomplaintsproceduresandtheBanking

OmbudsmansserviceswillbeondisplayinalloourbankBranches

aswilltheBankingOmbudsmansownbrochures.Ourcomplaints

procedurewill alsobe availableon ourwebsites andon request

romus.


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2 communication

2.1 customerprivacy

(a) Wehavea strictdutytoprotect thecondentialityoall our

CustomersandormerCustomersaairs.Wearealsoobligedinour

dealingswithourpersonalCustomerstoobserveandcomplywith

thePrivacyAct1993.

(b) Whenyouaredealingwithuswemayaskyoutoproveyouridentity.

Thishelpsusprotectyourpropertyandinormation.

(c) Wewillendeavourtoensurethatyourinormationthatwehold

isaccurate.Promptadviceoanychangesinyourpersonalcontact

detailssuchasresidentialoremailaddress,ortelephoneoracsimile

numberswillhelpustodothis.Thisisveryimportantbecausewe

willthenbeabletocommunicatewithyouandsendyouinorma-

tiononyouraccountsandotherrelevantmatters.

(d) Wewillonlyusetheinormationweholdaboutyouorthepro-

motionootherproductsorservicesiyouhaveconsentedtothis.

Iyoudonotwishtoreceivepromotionalmaterialromusatany

time,tellusandwewillnotsendit.

(e) Werequirealloouremployees,contractorsandagentstosigna

condentialityagreement.

() Youcanhelpustoprotectyourcondentialinormationbykeepingallinormationregardingyouraccounts,productsandservicesina

saeplace.

(g) Whenyouaredealingwithusbytelephone,yourconversationwith

usmayberecordedorvericationortrainingpurposes.

(h) Certainlawsrequireustodiscloseyourcondentialinormation,or

example,undertheTaxAdministrationAct1994theInlandRevenue

Departmentmayrequestcertaininormationromus.Section11.2

othisCodelistsexamplesosomeadditionallawsthatmayrequire

ustodiscloseyourcondentialinormation.

2.2 communicationwithyou

(a) Wewillprovideinormationtoyouromtimetotimeusingplain

languagewherewecan.Thismayincludeadvisingyouochanges

thatmayaectyourbusinesswithus.Wewillcommunicatewith

youinatleastoneotheollowingways:-

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

axorbytelephone);

(ii) bydisplayinginormationatBranches;or

(iii) bystatementsinthemedia,includingpublicnotices.

Inaddition,wheresuchinormationisonourwebsite,changeswill

benotedthere.

(b) Wheninormingyouothetermsandconditionsoanybankingservice,

wewillalsoinormyouthatwhenthereisavariationtoourtermsand

conditions,includingchangestoeesandcharges,wewill:-

(i) giveatleast14daysnoticeosuchvariation;and

(ii) communicatesuchchanges,either:-

bydirectcommunication;or

bydisplayinallBranchesand/orbynoticeinthemedia(includingpublicnotices).

Inaddition,wheretermsandconditionsaredisplayedonourwebsite,

changeswillbenotedthere.

(c) Priornoticeisnotrequiredorinterestratechangesandothervari-

ationsthataresubjecttomarketfuctuations.

(d) Youareresponsibleorinormingusoanychangeoyournameor

address.


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2.3 bankdisclosure

(a) YoumayrequestacopyoourcurrentquarterlyDisclosureStatement.

TheKeyInormationSummaryinthatdocumentwillbedisplayed

ineachoourBranchesandonourwebsite.

(b) Inadditiontoanyotherdisclosurerequiredbylaw,wewillmake

availabletoyou,thetermsandconditionsotheproductorservice

youhave,bothatthetimeyoutakethatproductorserviceandupon

requestbyyouatalaterstage.

(c) Atthetimeyouopenanaccount,wewillinormyouothedetails

ostandardeesandchargespayableorthenormaloperationothe

account.Wewilladvisechargesorotherproductsandserviceson

requestoratthetimetheproductorserviceisoered.

(d) Wewillmakesure ouradvertising andpromotionalmaterial is

notdeceptiveormisleadingandthatitcomplieswithallrelevant

legislation.

(e) Wewillinormyouoournon-standardeesandchargesbeore

paymentisdue.Theremaybechargesromotherparties(including

overseasbanks)owhichwehavenoknowledgeorcontrol.Ilegal

chargesaretobepassedontoyou,youwillbetoldtheamountdue

beorewepaytheaccount(providedyourcontactdetailsareupto

date).Yourrighttoapplyorareviewothecostsyouhavebeen

chargedwillthenbepreservedundertheLawPractitionersAct1982

ortheLawyersandConveyancersAct2006.

() Anyadvertisementthatincludesadepositinterestratewillstatethat

ulldetailsothetermsandconditionswillbeavailableonrequest

andwillalsoincludeanyotherdisclosurerequiredbylaw.Iyou

requestit,wewillprovideyouwiththeollowinginormation:-

(i) therateointerest,andwhetheritmaychangeovertheperiod

othedeposit,howtheinterestiscalculatedandwheninterest

willbecreditedtoyouraccount;

(ii) anyeesandchargesyoumustpay;

(iii) anygovernmentchargesandtaxesyoumustpay,including

ResidentWithholdingTax,Non-ResidentWithholdingTax

andApprovedIssuerLevy;and

(iv) otherinormation,suchastheconsequencesowithdrawing

depositsearlyorinpart.


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3 productsandservices

3.1 accounts,productsandservices

(a) OpeningAccounts

(i) Beoreoratthetimeyouopenanaccount,wewilladvise

youotherightsandobligationsrelatingtothataccount.This

inormationwillinclude:-

thetypeoaccount;

howandbywhomthe accountis tobe operated(i.e.

individuallyorjointly);

how undsmaybe putintoor withdrawn romthe

account;

whowillbeliableorrepayinganyexistinganduturedebts

ontheaccount(e.g.itheaccountisajointaccount);and

anyadditionaltermsandconditionsthatmayapplywhen

authorisingotherstoaccessyouraccount.

(ii) Wereservetherightnottoopenanaccountoryou.

(iii) Wearerequiredbylawtosatisyourselvesastoyouridentity.

Thisistoprotectyou,aswellastoavoidpossiblemisuseo

thebankingsystem.Youwillbeadvisedwhatidentication

isrequired.Iyoudonothavethemorecommonormso

identication,youshouldletusknow,asanalternativemeans

oidenticationmaybeacceptable.

(b) NewAccounts,ProductsorServices

(i) Whenweintroducenewaccounts,productsorservices,we

willensureinormationontheprice,natureand/ortermsand

conditionsotheaccount,productorserviceisavailable.We

maycommunicatewithyouaboutnewaccounts,productsor

services.Alternatively,wemayadvertisein themedia,bank

Branchesoronourwebsiteoranycombinationothese.Iyou

wouldliketoknowmoreaboutthesenewaccounts,productsor

services,youmaywishtocontactustoobtainmoredetail.

(ii) Wereservetherightnottooeryouproductsandservices.

(c) MovingorSuspendingAccounts

(i) Iyouwishtomoveyouraccounttoanotherbankoranother

partyrequestsustodosoonyourbehal,wewillco-oper-

ateinatimelymannerwiththerequest,subjecttoanylegal

constraints.

(ii) Wemaysuspendtheoperationoyouraccountorvarious

reasons.Thesemayinclude:-

complyingwithacourtorder;

youhavebeenadjudicatedbankrupt;

thereareinsucientundsinyouraccount;

iwearenotiedbyanypartyoadisputeovereitherthe

ownershipoundsortheoperationotheaccount;

or charitabletrust, incorporated societyand business

accounts(andothersimilartypesoaccounts)wemaystop

theoperationotheaccountwhollyorpartiallyuntilthe

authorityothepersonrepresentingthecharitabletrust,

incorporatedsocietyorbusinessorotherentityasthecase

maybeinitsdealingswiththebankisclaried;or

toprotectoneorallothepartiestotheaccount,usora

thirdpartywhohasreasonablyclaimedaninterestinthe

account.

Whentheoperationoanaccountissuspended,wewilladvise

allaccountholdersassoonaspossible.


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(d) ClosingoAccountsand theWithdrawingo Productsand

Services

(i) Eitheryouorwemayendanybankingrelationshipatany

time,andwemaywithdrawanyproductorservice,aslong

asanyrelevanttermsandconditionsareadheredto.Wewill

notnormallycloseyouraccountsorwithdrawaproductor

serviceuntilwehavegivenyouatleast14daysnoticesetting

outtherelevantdetails.However,theremaybecircumstances

wherewecloseyouraccountorwithdrawaproductorservice

withoutpriornotice.Examplesare:-

complyingwithacourtorder;

iyouhaveactedunlawully;

iyouhavebreachedourtermsandconditions;or

iyouhaveactedabusivelytooursta.

Whenanaccountisclosed,wewillrequestthatyoureturn

ordestroyallunusedchequesandanyCardrelatingtothat

account.

(ii) Anyundsremaininginyouraccountattimeoclosurewill

bereturnedtoyou,subjecttoanytermsandconditions,ees

or interestapplyingto thoseunds.Further, i thereis any

disputeovertheseundswemaynotbeabletoreturnthem

toyou.

(iii) Iapartytoajointaccountadvisesusthathe/shewishestowithdraw romthat jointaccount,wewilleither stop the

accountorremovethatpartyromtheaccount.Inbothcases,

allpartiestotheaccountwillbeadvisedassoonaspossible.

However,thejointliabilityoralldebt(includingpayments

madebutnotprocessed)atthedateostoppingtheaccount

orthatpartyswithdrawal,willcontinueuntilullrepayment

ismade.

3.2 paymentservices

(a) WemayprovideyouwithpaymentservicessuchasDirectCredits,

AutomaticPayments,DirectDebits,Bill Payments, undtransers,

electronicCardtransactions,same-dayclearedpaymentsandinter-

nationalmoneytransers.

(b) Accesstoyouraccountsmaybeprovidedbymeansotelephone,

Internet,acsimile,ATMs,EFTPOS,atBranchesorothermeans.

(c) Wheresuchservicesareused,wewillinormyouo:-

(i) thetermsandconditionsthatapplytotheoutwardpaymentservicesoeredandtheconsequencesoanybreachothese

termsandconditions;

(ii) anyeesorchargesortheserviceandwewilladviseyouthat

theremaybeachargeimposedbythereceivingbank;

(iii) thedeadlinebywhichyoumayalterorstopapayment;

(iv) ourrighttoalter,adjust,cancel,reverseorsuspendanypay-

mentinstructions;and

(v) yourrighttoalter,adjust,cancel,reverseorsuspendanypay-

mentinstructions,including,butnotlimitedto,yourright

toadviseusdirectlytocancelorstopdirectdebitauthorisa-

tions.

(d) Paymentsmaybedeclinedorreversedithereareinsucientunds

inyouraccountororotherreasonsandyoumaybechargedeesinrespectosuchpayments.Fundspaidintoyouraccountmaynot

beavailableoryoutowithdrawuntilthepaymentiscleared.

(e) Onrequest,wewillprovideyouwithinormationonwhenunds

paidintoyouraccountmaybecomeavailable.Whenundsbecome

availablemaydependon anumberoactorsincludingthetype

opaymentused,jurisdiction,therulescoveringthepaymenttype

and/orwhetherthepaymentwasmadeonanon-businessdayor


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aterbankinghours.

() Iwepermityoutodrawagainstunclearedunds,weareproviding

Creditandwillrequiretoberepaid(includinginterestandcharges)

ithepaymentsintoyouraccountarereversedout.

(g) Itmaynotbepossibletostoporreverseelectronicpaymentsonce

theyhavebeenmade.Paymentsyouhavemadeinerrorcanonlybe

recoveredromtheaccounttheyhavebeenpaidtowiththecon-

sentotheaccountholder.Wewillco-operatewithyouoranother

bankinvolvedinthetransactiontotrytorecoverpaymentsmadein

error.

(h) Theremaybecircumstanceswherewecanreversepaymentspaid

intoyouraccount,suchaswhenweortheotherbankinvolvedhave

madeanerror.

(i) Wewilltakeandpromptlyprocessyour:-

(i) instructiontocancelaDirectDebitauthorityandwewill

instructyoutocontacttheDirectDebitInitiatortoadvise

themthat youhavecancelledyourDirectDebitauthority

(otherwisetheDirectDebitInitiatormightlodgeaurther

DirectDebitauthoritywithus);and

(ii) complaintthataDirectDebitwasunauthorisedorotherwise

irregular,butwemaysuggestthatyoualsocontacttheDirect

DebitInitiator.

4 cheques

4.1 cheques

(a) Wewillinormyouotheneedtokeepyourchequebooksaeatall

timesandthatyoushouldneversignchequesinadvance,orleave

anydetailsblankaterachequehasbeensigned.Thelossoyour

chequebook, anycheques oranyunauthorised withdrawals rom

youraccountshouldbereportedtousimmediately.ThePolicemay

alsoneedtobenotied.

(b) Wemayaskyouoridenticationwhenyoucashachequeandwewillexplainourreasonsordoingsoonrequest.

(c) Onrequest,inormationwillalsobeavailabletoyouon:-

(i) howlongitislikelytotaketoclearacheque(chequesdrawn

onanoverseasbankwilltakelongertoclear);

(ii) whathappensioneoyourchequesisdishonouredandwhat

happensia chequeyoupayintoyouraccountis dishon-

oured;

(iii) thevariouswayschequesmaybecrossedtohelpprotect

againstthetorraud;

(iv) whathappenswhenachequeisaltered;

(v) howyoucanobtainaSpecialAnswerorearlyclearanceo

acheque;and(vi) anyeesandchargesorchequeprocessing,honoursanddis-

honours.

(d) Onrequest,wewillinormyouhowtostopachequeandoany

eesorchargesthatmayapply.Wewillmakereasonableeortsto

stopachequewhenyourequestustodosoandwewillalsoadvise

youothecircumstanceswhenwemaynotbeabletocomplywith

yourrequesttostopacheque(orexample,ithechequehasalready


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beencashedorpresentedbywayoSpecialAnswer).Atthetime

yourequestastop,wemaynotbeabletoestablishwhetherornot

thechequecanbestopped.

(e) Iachequeismisplacedinprocessing,allbanksinvolvedwilldotheir

besttohelpyouobtainareplacement.

() Iachequeisnotpresentedtousorpaymentwithinacertainperiod

otime(usuallysixmonthsromthedatewrittenonthecheque)we

may:-

(i) paythecheque;

(ii) declinetopaythecheque;or

(iii) makeanyurtherenquiryweconsidernecessarybeoredecid-

ingwhethertopayornottopaythecheque.

4.2 bankcheques

(a) Likeanyothercheque,BankChequesneedtoclearandtheunds

maynotbeavailabletoyouuntilthisprocessiscomplete.

(b) Onrequest,wewillinormyouothetermsandconditionsrelating

toBankChequesandotheeesorthisservice.

(c) There aresome limited circumstancesin whichwemayreuse

paymentonBankChequesthathavebeenissuedtoCustomers.In

general,thiswouldonlybewhen:-

(i) thechequeisraudulent,orgedorcountereit,orhasbeen

alteredsinceitwasissued;

(ii) thechequehasbeenreportedlostorstolen;

(iii) acourthasissuedanorderrestrainingpayment;

(iv) therehasnotbeenproperpaymentbythecustomerorthe

chequeandthatcustomerpresentsthechequeorpayment;

or

(v) therehasnotbeenproperpaymentorthechequeandany

otherpersonpresentsthechequeorpaymentandthatperson

hasobtainedthechequebyraud,orknowsthataprevious

ownerobtainedthechequebyraud,orknowsthatitwas

originallyobtainedromthebankwithoutproperpayment.

(d) Wearenotobligedtostopabankchequeissuedtoyouuponyour

request.However,wemaydosoithechequehasbeenlost,stolen

orreturned tous byyou.BankChequescannotbe stoppedor

example,becauseyouhavechangedyourmindaboutatransaction

aterhandingthechequeovertoanotherpersonoratransaction

betweenthepartieshasbrokendownthroughthesupplyoaulty

goodsandservices.


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5 credit

5.1 provisionocredit

(a) WhenyouseekCreditromus,wewillprovideyouwithinorma-

tionaboutthevarioustypesoCreditFacilitiesavailabletoyou,so

thatyoucanmakeaninormeddecision.

(b) WhenconsideringyourapplicationorCreditwemaytakeinto

accountyournancialhistory,includinginormationromCredit

ReerenceAgencies.Wewillobtainyourconsentbeoreaccessing

inormationaboutyouromthirdparties.

(c) WewillonlyprovideCredittoyouorincreaseyourCreditlimit

whentheinormationavailabletousleadsustobelieveyouwillbe

abletomeetthetermso theCreditFacility.Wehavetherightto

decidenottoprovideCredittoyou.

(d) WhenaCreditFacilityisapprovedbyus,wewillcomplywithall

lawsthatmayapply.Wewill inormyou,andanypartyproviding

Security,oyourobligationsincluding:-

(i) theannualinterestrateandwhetheritmaybechangedduring

theperiodotheCreditFacility;

(ii) iapplicablethenancerateasdenedintheCreditContracts

Act1981;

(iii) alleesandcharges(includinggovernmentchargesandtaxes);(iv) theperiodorwhichtheCreditFacilityisavailable;

(v) therepaymentterms,includinganypenaltiesorearlyrepay-

ment;

(vi) anyinormationyouneedtosupplytousduringthetermo

theCreditFacility;and

(vii) anyotherimportantinormationsuchas,anyinsuranceand

Security requirements,whenpenaltyordeaultinterest is

chargedorconditionsyouwillneedtomeetbeoretheCredit

Facilityismadeavailabletoyou.

(e) IyouhaveaCreditFacilityinconjunctionwithothers,yourliability

isJointandSeveral,unlessweagreeotherwise.

() IyoudonotcomplywiththetermsoyourCreditFacility,wewill

contactyouatyourlastknownaddresstoadvisewhatstepswemay

take.Ithishappens,wemaydiscloseinormationaboutyourcontact

detailsanddebtstoCreditReerenceAgenciesand/orwemayask

anoutsidepartytocollectyourdebtonourbehal.Wewillgiveyou

noticethatwearegoingtodothis,explainwhywearedisclosingtheinormationandtheeectitmayhaveonyourabilitytoobtain

Creditintheuture.Iitislateragreedthattheinormationsupplied

wasnotcorrect,wewillmakesuretheCreditReerenceAgencies

aretoldothis.

(g) Itmaybethatwehavewrittenyourdebtoorourinternalaccount-

ingprocesses,howeverthisdoesnotmeanthatyouarenolonger

liableoryourdebt.

(h) ArecordoyourpriordebtmayremainontherecordsotheCredit

ReerenceAgencyand/orDebtCollectionAgencyevenateryou

havepaidoyourdebttous,butornolongerthanthepermitted

periodrequiredbylaw.

(i) Wewillpromptlyinormyouiweuseundsyouhavedeposited

withustoosetyourdebtswithus.

(j) Theollowingprincipleswillalsobeappliedbyus:-

(i) wewillco-operatewithyouradviserstoexplainthenature

oanyCreditFacilityandtoclariyanythingduringtherela-

tionship;

(ii) wewillagreewithyouattheoutsetotheCreditFacility

whatsortomonitoringinormationyoushouldsupplyand


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howrequently.Icircumstanceschange,anynewmonitoring

inormationrequiredwillbeadvisedtoyouinwriting;

(iii) wewillcommunicatewithyouwhenwehaveconcernsabout

yourbusinessand/orourrelationshipwithyou,explainingthe

reasonsorourconcern;

(iv) iyoundyourselinnancialdiculty,pleasecontactus

immediatelysowecanconsideryourparticularsituationand

anyrecoveryproposition.Youshouldcontactusbeoreyou

deaultunderanyCreditFacilityorassoonaspossiblethere-

aterasthesooneryoucontactus,thebetterpositionwewill

beintoassistyou.

(v) wemayaskoradditionalnancialinormationand/orseekan

independentreview.Iwedoso,wewillexplainourrequire-

mentsandthattheremaybecostsattached;

(vi) wherewe haverequestedthat youobtainan independent

reviewoyourbusiness,wherepossiblewewillseektodiscuss

theinormationprovidedwithyou(and,shouldyourequest,

youradvisers)beoretakinganyaction;and

(vii) iyouactingoodaith,keepusinormedaboutdevelop-

ments,keepyouragreementswithus,heedwhatyourown

andanyindependentadviserssayandarepreparedtomake

thechangesneededearlyenoughtopreservetheunderlying

business,wewillnotnormallyseektheimmediateappoint-

mentoareceiverorstartotherrecoveryproceedings.

5.2 guarantorsandprovidersoothersecurity

(a) Wewillmakesurethatpeoplewho haveoered togiveus a

GuaranteeorotherSecurityaremadeawareotheirobligationsand

inormedthat:-

(i) bygivingaGuaranteeorprovidingSecurityoryourdebt,

theymaybecomeliableinsteado,oraswellas,you;

(ii) theyshouldseekindependentlegalor,irequired,otherpro-

essionaladvicebeoregivinganyGuarantee;

(iii) theymayrequest,andwemay,butarenotrequiredto,agree

that theamounto their liabilityunder theGuaranteeor

Securitywillbelimited;

(iv) unlesswehaveagreedthattheamountotheGuaranteeor

Securityislimited,andwhatthelimitotheirliabilitywill

be,theirGuaranteeorSecuritywillbeunlimited;and

(v) wemayalsoclaimanyinterestowedandanycostsincurredintherecoveryprocess.

(b) TherearecircumstanceswheretheGuaranteewillremaininorce

atertheguaranteeddebtisrepaid.Youshoulddiscussthiswithyour

independentlegalorproessionaladvisor.

(c) GuarantorsandpeoplegivingSecuritymayusethecomplaintspro-

ceduressetoutinclause1.3othisCode.


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24 25

6 pinsandpasswords

(a) IPINsorPasswordsarenotissuedtoyouinpersonorarenotselected

byyoupersonally,thePINsorPasswordswillbeissuedseparately

romanyCardorotherproductorservicewithwhichtheyareto

beused.

(b) WherePINsandPasswordsareissuedtoyoupersonally,wemust

besatisedaboutyouridentitybeoreallowingCardstobeissued

orbeoreyouaregivenaccesstootherPINorPasswordoperated

services.(c) WewillinormyouothekindsoPINsand/orPasswordsthatare

unsuitable.Youmustnotuse thesePINsorPasswords.Unsuitable

PINsorPasswordsinclude:-

birthdates,monthsoryears;

sequentialnumbers(e.g.3456);

numbercombinations thatmaybe easily guessed (e.g.

1111);

partsoyourtelephonenumber;

partsonumbersintheorderinwhichtheyareprinted

onanyoyourCards;

othereasilyaccessiblepersonaldata(e.g.driverslicence,

lockernumberorothernumberseasilyconnectedwith

you);and

amily,petorstreetnames.

(d) Wewillalso inormyou thatyoumust saeguardyourPIN or

Password.Forinstance,youmust:-

memoriseyourPINorPassword;

notrecordyourPINorPasswordanywhere;

notdiscloseyourPINorPasswordtoanyone(including

thePolice,bankstaoryouramily);

ensureanyauthorisedsignatoriesonyouraccountkeep

theirownPINSorPasswordssecure;

takecaretoensureno-onecanseeyouenteryourPINat

ATMsorwhenusingEFTPOS;and

reportthedisclosureorpossibledisclosureoyourPINor

PasswordassoonasyouareawareorsuspectyourPINor

Passwordhasbeendisclosed.

Inaddition,wewillinormyouthatyoushouldconsiderusingadierentPINorPasswordordierentCardsorequipment.

(e) Wewillconormtointernationallyacceptedstandardsormethods

ogeneration, storageand terminalSecurity relating toPINs and

Passwords,toensurecondentialityandSecurityoryourprotec-

tion.

() WewillencouragethirdpartiestomaximiseyourPINandPassword

Secur ity.ForEFTPOSacilitiesonourownpremises,wewillensure

thatnewandreplacementequipmentisoatypethatmaximisesyour

PINandPasswordSecurity.


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26 27

7 cards

7.1 cards

(a) IssuingCards

(i) WewillonlyprovideyouwithanewCard(otherthanreplace-

mentorreissueCards)oninstructionromthecustomer/s

responsibleortheaccount.

(ii) WhereCardsareissuedtoyoupersonally,wemustbesatised

aboutyouridentitybeoreallowingCardstobeissued.

(iii) WhenwerstissueyourCard,wewillprovideyouwiththe

termsandconditionsrelatingtoyourCardandinormyou

whichoyouraccountsyourCardcanaccess.Wewillalso

inormyouwhethertheCardissuedtoyouhasmorethan

oneunctionandiso,whatthoseunctionsare.Thetermsand

conditionsandunctionsmaychangeromtimetotime.

(iv) Wewilladviseyouothecurrenttransactionlimitsthatapply

atEFTPOSandATMs.Theselimitsmaychangeromtime

totimeandareavailableonrequest.

(v) Wewilladviseyouooureesandchargesthatapplytoyour

Card.

(vi) AdditionalCardsmaybeissuedtoapersonnominatedby

you,iweagree.ThisisuseulorillordisabledCustomers.

Youwillbeliableoralltransactionsmadebytheadditional

cardholder/s.

(vii) WhenweissueyourCard/swewillinormyouhowtobest

saeguardyourCard/s.Forexample,youmust:-

takecareoyourCard/s.DonotleaveyourCard/sinan

unattendedwallet,purseorvehicleoranywherewherea

thiecouldremoveaCardwithoutbeingnoticed(par-

ticularlyinnightclubs,hotelsorrestaurants);

signyourCardassoonasyoureceiveit;

notgiveyourCard/stoanyoneorletanyoneelseuseyour

Card/s(includingthePolice,bankstaoryouramily);

alwaysremembertotakeyourCardbackaterusingit;

tellusiyouchangeyouraddress,soreplacementCard/s

aresenttothecorrectplace;and

reportthelossorthetoyourCard/sassoonasyouare

awareoit.

(b) ReportingLoss,ThetorDisputedTransactions

(i) Wewillinormyouowhatproceduresyoumustusetoreport

theloss,thetorunauthoriseduseoyourCard/s,PINor

PasswordbothinNewZealandorromoverseas.

(ii) Wewillmakeavailabletoyoutelephonenumbersthatyou

canusetoreporttheloss,thetorunauthoriseduseoyour

Card/s,PINorPasswordassoonasyouareawarethatany

sucheventhasoccurred.

(iii) Wewillassistyouiyouencounteranydicultieswithanother

participatingbanksATMandcannotresolvethemwiththe

participatingbankthatownstheATM.

(c) CreditCards

(i) WewillonlyprovideyouwithaCreditCardorincreaseyour

CreditCardlimitwhentheinormationmadeavailabletous

leadsustobelievethatyouwillbeabletomeettheterms

oaCreditCardacility.Wehavetherighttodecidenotto

provideaCreditCardacilitytoyou.

(ii) Youshouldbeawareotheollowingmatterswhenrequesting

aCreditCard,andollowingtheissueoaCreditCard:-

yourCreditCardtermsandconditionswilladviseyouthat

therearerisksinvolvediyougiveyourCreditCarddetails


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28 29

andauthorisetransactionsbeoreyoureceivegoodsorserv-

ices.Youshouldconsiderthesecurityandstandingothe

companyorentityyouaredoingbusinesswith(including

whenpurchasinggoodsorservicesnonace-to-ace);

youhavealimitedtimetodisputeatransaction.Wewill

inormyouothistimeinourCreditCardtermsandcondi-

tions.Failuretoreporttheincorrect,invalidorUnauthorised

Transactionwithinthat timewillmeanthatwecannot

reversethetransactionandyouwillhavetopayorit;

therearelimitedcircumstancesunderwhichwecanreverse

atransactionwhichwillbe subjectto theruleso the

relevantCreditCardcompany.Forexample,wecannot

reversea transactionwherethere isa disputewiththe

Merchantastothequalityogoodsandservicesoryou

havechangedyourmindaboutthegoodsorservice;and

iyounotiyusoanincorrect,invalidorUnauthorised

TransactionmadetoyourCreditCardaccountwithinthe

timelimit,wewillinvestigatethematter.Ithetransactionis

oundtobeincorrect,invalidornauthorisedwewillreverse

thetransaction(thisissometimescalledaChargeback).

7.2 liability

(a) YouwillnotbeliableorlossesbeoreyoureceiveyourCardor,iapplicable,yourPINandPasswordprovidedyouhavenotieduso

yourcurrentaddress.InanydisputeaboutreceiptoCard/s,PINsor

Passwordsthatarenotissuedtoyouinperson,wewillnotrelyon

prooodespatchtoyourcorrectaddressasproothattheCard/s,

PINsorPasswordswerereceived.

(b) WewillullyinormyouinourCardtermsandconditionswhat

liabilityyouhaveinrelationtothe lossorthetoyourCardor

disclosureoyourPINorPassword.

(c) OnceyouhaveadvisedusthatyourCard/shavebeenlostorstolen,

oryourPINorPassworddisclosed,eitherinNewZealandorover-

seas,youwillnotberesponsibleoranyunauthoriseduseoyour

Card/saterthattime.Thisprotectionwillnotapplyiyouhave

actedraudulentlyornegligently.

(d) Youwillbeliabletopaynomorethan$50oanylossthatoccurs

beoreyounotiyus.However,this$50limitwillnotapplyi:-

(i) youhaveactedraudulentlyornegligently;or

(ii) youhavecontributedtotheunauthoriseduseoyourCard,

orexample,(butnotlimitedto) breachingourtermsand

conditionsby:-

selectingunsuitablePINsorPasswords(seeclauses6(c)

and(d)othisCode);

ailingtoreasonablysaeguardCard/s;

keepingwrittenrecordsoPINsorPasswords;

partingwithCard/sand/ordisclosingPINsorPasswords

toanyotherperson;

ailingtotakeallreasonablestepstopreventdisclosureto

anypersonwhenkeying-inPINsorPasswords;or

unreasonablydelayingnoticationtousothelossorthet

oCard/s,orotheactualorpossibledisclosuretoanyotherpersonoPINsorPasswords.

Ianyotheseapply,yourmaximumliabilitywillbethelesser

o:-

theactuallossattimeonotication;or

themaximumamountthatyouwouldhavebeenentitled

towithdrawromyouraccountbetweenthetimeyour

Cardwaslost/stolenandthetimeyounotiedus.


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30 31

(e) IyourCardgivesyouaccesstoanaccountwithaCreditFacility(or

example,aCreditCardorarevolvingCreditFacility),ailuretolook

ateryourCardoranyassociatedPINcouldresultinasubstantial

lossorwhichyoucouldbeheldresponsible.

() Youarenotliableorlosscausedby:-

(i) raudulentornegligentconductbyemployeesoragentso

banksorpartiesinvolvedintheprovisionoelectronicbank-

ingservices;

(ii) aultsthatoccurinmachines,Cardsorsystemsused,unless

theaultsareobviousor advisedbymessageornoticeon

display;

(iii) UnauthorisedTransactionsbeore youhave receivedyour

Cards,PINsorPasswords;or

(iv) anyotherUnauthorisedTransactionwhereitisclearthatyou

couldnothavecontributedtotheloss.

7.3 merchantcardservices

(a) OuragreementswithourMerchants ortheprocessingo Card

transactionswillhavetheirowntermsandconditionsapplyingto

use,securityandliability.TheseMerchantservicesagreementswill

alsoincludeinormationonthesettlementandreconciliationoyour

Merchantacility.Theseterms andconditionsapplyinadditionto

theminimumstandardsotheCode.

(b) WewillalsoinormourMerchantsotheassociatedrisksoaccepting

CardtransactionsespeciallythosewheretheCardisnotpresent.

(c) WewillobtainaMerchantsexplicitconsentbeorechangingtheir

AcquiringBank.

(d) Wewillprovidearobust,encryptedandecientEFTPOSpayment

system.

(e) Merchantsare required tosaeguardyourCarddetails sothat no

unauthorisedpersongainsaccesstothesedetails.IMerchantsail

tokeepsuchdetailssecure,theymaybeliableorlossesassociated

withmisuseothecardholderinormation.


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8 internetbanking

(a) Our Systems

(i) We will take appropriate measures to ensure that our Internet

Banking systems and technology are secure and are regularly

reviewed and updated or this purpose.

(ii) I you incur a direct loss that is due to a security breach o

our Internet Banking system as a result o our ailure to take

reasonable care and is not caused or contributed to by you,

we will reimburse you or that loss.(iii) We will exercise reasonable care and skill in providing you

with Internet Banking services. However, subject to our obli-

gations under the Consumer Guarantees Act 1993 we will

not be responsible i you incur a loss, which is caused through

circumstances beyond our reasonable control. In particular, we

cannot be responsible or a loss caused through circumstances

beyond our reasonable control because o:-

your inability to access Internet Banking, or any other

application associated or reliant on Internet Banking, at

any time, or any ailure or delay in providing a service via

the Internet; or

a malunction o any equipment (including telecommuni-

cations equipment) which supports our Internet Banking

service.

(iv) Your computer or device is not part o our system thereore

we cannot control, and are not responsible or, its security.

However, we will inorm you, primarily through our website,

how to best saeguard your online inormation and the steps

you should take to protect yoursel and your own computer

rom raud, scams or unauthorised banking transactions.

In addition to non technical advice (such as not leaving your

computer/device unattended when you are logged on to

Internet Banking or not using shared computers like those

in Internet cas to access Internet Banking), we will also

have on our website available inormation and advice on the

benefts o installing and maintaining protection, in respect o,

or example:-

anti-virus sotware;

frewalls;

anti-spyware; and

operating system security updates.

(v) We will inorm you o what procedures you must use to

report unauthorised access to your inormation, accounts or

disputed transactions using your Internet Banking service and

make available to you contact inormation so you can report

this activity as soon as you are aware o it.

(vi) When we frst give you access to our Internet Banking ser-

vices we will tell you where to fnd the inormation you need

to saeguard your online inormation and to protect yoursel

and your own computer rom raud, scams or unauthorised

banking transactions. This inormation will be updated rom

time to time.

(vii) We will never send you an email asking you to confrm your

security inormation or asking you to disclose your Password

or security inormation by email.

(viii) We may also warn you against using an account aggregation

system or sotware which is not provided by us that lets you

see all your online accounts rom dierent websites on the one

website and requires you to input or disclose your customer

ID, Password or any other security inormation.

(ix) When you access Internet Banking services we will also inorm


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3534

you o the applicable terms and conditions relating to the use

o Internet Banking services.

(x) We will advise you o the current transaction limits that apply

to our Internet Banking services. These limits may change

rom time to time and are available upon request.

(b) Your ID and Passwords and other Authentication/Security

Inormation

We will provide you with regularly updated inormation on:-

(i) How to access Internet Banking services, including details about

your customer ID, selection o appropriate Passwords and the

availability o additional authentication or security options.

(ii) Maintaining the security o your customer ID, Passwords and

any other security inormation (which, where applicable,

includes any second actor authentication security device).

(iii) Your responsibilities or protecting your Password and any

other security inormation, including (but not limited to):-

never disclosing your Password and any other security

inormation to anyone else, including bank sta, police or

amily members;

not recording your Password or other security inorma-

tion including keeping your Password on a fle or on your

computer or other device (including any Password saving

acility that is not acceptable to your bank);

not creating or using a Password and any other security

inormation that can be:-

a) easily ound out; or

b) relates to personal inormation about yoursel (e.g. your

birthday, amily, street or pet names) or includes any

obvious or sequential numbers such as 54321 or related

numbers such as 22222;

creating or using a Password and any other security inor-

mation that is unique and/or is not the same as or similar

to Passwords and any other security inormation used or

other services you use;

changing your Password and any other security inorma-

tion immediately i anyone else does or may know it;

regularly changing your Password or increased security,

and how to do this;

taking reasonable care when accessing your Internet Bank-

ing service to ensure that your Password or other securityinormation is not seen by or disclosed to anyone else;

not opening attachments or running sotware rom

untrusted or unknown sources; and

not responding to any requests or your Password or secu-

rity inormation.

(c) Your Liability (Responsibility)

As a guiding pr inciple of this section, we will continue the practice of reimbursing

all customers that are genuine victims of Internet Banking fraud.

(i) You will not be liable or losses caused by Unauthorised

Transactions beore you are able to access Internet Banking

or the frst time or during any period we prevent you rom

accessing Internet Banking, including, i applicable, beore

you receive your customer ID, Password or any other secu-

rity inormation provided you have notifed us o your cur-

rent address. In any dispute about receipt o customer IDs,

Passwords or security inormation that are not issued to you in

person, we will not rely on proo o despatch to your correct

address as proo that the customer ID, Password or other secu-

rity inormation or additional authentication were received.


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3736

(ii) I you advise us as promptly as is reasonably possible that your

customer ID, Password or any other security inormation is

or may be known to another person or there has been an

unauthorised access to your Internet Banking inormation or

accounts you will not be held responsible or any loss, unless

you have acted raudulently or negligently or have contributed

to such disclosure or unauthorised access by not ollowing the

security inormation and advice in this Code and as provided

by us on our websites and our terms and conditions.

(iii) You may be liable i an Unauthorised Transaction occurs ater

you have received the means to access Internet Banking, i or

example, (but not limited to) you have breached our terms

and conditions by doing the ollowing:-

you have a PIN or Password o a type you have been

warned not to choose;

you have voluntarily or negligently disclosed your PIN,

Password or other security inormation to anyone else;

you have kept a written or electronic record o the PIN,

Password or other means o access or ailed to store same

in a secure acility acceptable to your bank;

you have used a computer or device that you know or

believe does not have protective sotware and operating

system installed and reasonably up to date;

you have not taken reasonable steps to ensure that the

protective systems installed on your computer or device

such as virus scanning, frewall, anti-spyware, operating

system and anti-spam sotware are continued to be updated

within a reasonable period o time;

you have not taken reasonable care to saeguard any

other device that is used to access your Internet Banking

service;

you have not advised us as promptly as is reasonably pos-

sible that you are aware that someone other than you has

accessed your Internet Banking service or an Unauthorised

Transaction has occurred;

you have let your computer unattended when logged on

to the Internet Banking service; and

you have not ollowed our reasonable security warnings

about the processes and saeguards to ollow when using

Internet Banking.

I any o these apply your maximum liability will be the lessero:-

the actual loss at the time o notifcation to us; or

the balance that would have been available or withdrawal

rom your account(s), including any Credit Facility,

between the time any unauthorised access was made and

the time you notifed us.

(iv) I you have used or allowed your account to be used to

process raudulent or Unauthorised Transactions you may be

liable or some or all o the loss suered by the party who

has been derauded, regardless o the balance available in your

account.


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38 39

9 otherservices

9.1 oreignexchangeservices

(a) WewillprovideyouwithdetailsoExchangeRatesandourcom-

missionchargesor,ithisisnotpossibleatthetime,thebasison

whichthetransactionwillbecompleted.

(b) Wewillprovideyouwithanindicationowhenmoneysentoverseas

byinternationalmoneytranseronyourinstructionswouldnormally

beavailableorcollection.Wewillalsoinormyouthattheperson

receivingtheundsmayhavetopayaeetotheoverseasbank.

(c) Beorecompletinganycontractororwardoreigncurrencytransac-

tionsorapersonalcustomer,wewillinormyouoanyeesandrisks

associatedwiththecancellationo,orvariationto,suchcontract.

(d) Whenweareactingonyourbehaltocollecttheproceedsooreign

chequesororexportorimporttransactions,wewillinormyouon

requestothelikelycostsothetransaction(includinganyoverseas

bankcosts,iknown),thelikelytimeorthecollectiontobepaid

andtheobligationsothepartiesunderInternationalChambero

Commercerules.

9.2 otherfnancialservices

(a) Wemayprovideoroerotherproductsandservicesincludingman-agedunds,insurance,SaeCustodyandsecuritiestradingacilities.We

willadviseyouthattheremayberisksininvestinginorpurchasing

someotheseproductsorservices.

(b) Someotheseproductsandservicesmaybesuppliedbythirdpar-

tiesandsoldbyusasanagent.Thecontract,includingitstermsand

conditions,orsuchproductsorserviceswillbebetweenyouandthe

thirdpartysupplierandwemayreceivecommissionorsuchsales.

(c) Beoreyoupurchasesuchproductsandservices(otherthaninsur-

ance),wewilladviseyou(inadditiontoanydisclosurerequiredby

law)otheollowinginormation,soyoucanmakeaninormed

decisionastowhichproductsorservicesmeetyourneeds:-

(i) thetermsandconditionsotheproductorservice;

(ii) anyeesandchargesapplicabletotheproductorserviceand

howtheywillbecharged;and

(iii) wheneitherousmayalterorendthearrangementandthe

likelyconsequencesothis.

(d) Forinsuranceproductsandservices,youwillbeadvisedotheol-

lowinginormationatthetimetheinsureracceptstheapplication

(inadditiontoanydisclosurerequiredbylaw),soyoucanmakean

inormeddecisionastowhichinsuranceproductsorservicesmeet

yourneeds:-

(i) thetermsandconditionsotheproductorservice;

(ii) anyees,chargesandpremiumsapplicabletotheproductor

service;

(iii) wheneithertheinsureroryoumayalterorendthearrange-

mentandthelikelyconsequencesothis;and

(iv) whetherareelookperiodisoeredandiso,howlongor.

Whenareelookperiodisoered,itshallbeaminimumo

vebusinessdaysorasinglepremiumpolicyandtenbusiness

daysorperiodicpremiumsortheminimumrequiredbylaw,

commencingromthelateroconrmationotheproposalby

youorreceiptbyyouothepolicydescriptionandstatement

opolicyholderrights.

(e) Onrequest,wewillhelpyouestablishyourneedsbeoreyoudecide

onaproductorservice.


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40 41

10 statementsandaccountinormation

(a) Unlessyourequestotherwise,atleasteverysixmonths,wewillmake

availabletoyourecordsrelatingtoyourtransactionalaccounts.These

willbeinprintedorelectronicormasagreedwithyou.Theywill

bearecordoalltransactionssincethepreviousstatement.Iyou

haveapassbookaccount,thiswillbetheonlyrecordotransactions

youreceive.Iyourequireurtherrecords,theremaybeacost.

(b) Foraccountswherestatementsareprovided, other than those

describedinclause10(e)othisCode,thosestatementswillshow:-(i) oreachtransactionsincethepreviousstatement:-

theamountothetransaction;

thedatethetransactionwaspaidintoorwithdrawnrom

theaccount;

the chequenumbero any chequespaid outoyour

account;and

orCardtransactions,AutomaticPayments,DirectCredits,

DirectDebitsandotherpayments,reerencetotheparty

whoismakingorreceivingthepayment(isuchinorma-

tionhasbeenmadeavailable);

(ii) anyeesorchargesrelatingtotheoperationotheaccount;

and

(iii) thecontactdetailsormakingenquiriesorreportingerrors

inthestatementassoonasyoundthem.

(c) Wewillinormyouthatassoonasyoureceiveyourstatement,you

shouldcheckallentriesandreporttousanyapparenterrors,discrep-

anciesortransactionsyouhavenotauthorisedassoonaspossible.

(d) Wewillmakesurethattheelectronicundstransersystemsweuse

recordsucientinormationontransactionssotheycanbetraced,

checkedandveried.

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

unittrustsandlieinsurance)mayhavespecicinormationreporting

requirements,withwhichwewillcomply.


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42 43

11 appendix

11.1 glossary

ThisglossaryexplainsthemeaningowordsusedinthisCodeand

othercommonbankingterms.Theyarenotpreciselegalortechnical

denitions.

Acquiring Bank

ThebankwhichprovidesCardpaymentservicestoaMerchant.

Automatic Payments

Arrangements bywhichCustomersinstructtheirbankstomake

regularpaymentsoraxedsumromtheiraccountintoanother

bankaccount.

ATMs (Automatic Teller Machines or Cash or Money

Machines)

ElectronicterminalsthatallowCustomerstouseCardsandPINsto

accesstheiraccounts,withdrawcash,makedeposits,transerunds

oraccessotherservices.

Bank Cheques

Achequethatispurchasedrom,anddrawnontheaccountoa

bank.

Bill Payments

Aone-otranseroundsromthepayingcustomersaccounttoapre-establishedpayeesaccount,whichisinitiatedbythepayingcustomer.

Thepayingcustomerdecidesthepaymentamountandthepayment

dateoreachpaymentandadvisesthepayingbank,viatheirbanks

telephonebankingservice,InternetBankingserviceorothermeans.

Branches

Atermoracustomercontactsitewhichthecustomercanphysically

visitandcarryouttheirgeneralbankingrequirements.Theymay

alsobecalledrepresentativeoces,pods,outlets,customer

servicecentres,etc.

Cards

AgeneraltermoranyCardsthatcanbeusedtopayorgoodsand

services,or toaccessATMmachinesor otherelectronicbanking

servicessuchasEFTPOS.

Examplesare:-

(i) CreditCards-CardsthatallowCustomerstobuyonCredit

andto obtain cashadvances.Customers receivemonthly

statementsandmaypaythebalanceinullorinpart,though

thereisusuallyaspeciedminimumpayment.

(ii) ChargeCards-similartoCreditCards.TheyallowCustomers

topayorpurchasesand,insomecases,toobtaincashadvances.

Whenthemonthlystatementisreceived,thebalancemustbe

paidinull.

(iii) DebitCards-Cardsthatcanbeusedtoaccessyouraccounts

toobtaincashormakeapaymentatapointosale.Customers

accountsaredebitedelectronicallyorthesetransactions.

(iv) CashCards-CardsusedtoobtaincashromATMs.

(v) Multi-FunctionCards-Cardsthatcombinemorethanone

otheseunctions.

Chargebacks

ThereversalbythebankotransactionsmadetoCustomersCredit

Cardaccountswhichareoundtobe:-

incorrectcharges;or

notvalidcharges;or

notauthorisedcharges;and

notiedtothebankwithintherequiredtimelimit.


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44 45

Cheque Crossings

Waysomarkingchequestolimittheeasewithwhichtheycanbe

exchangedorcash.Limitedprotectionwillbegivenbyparallellines

acrosstherontothecheque.Thiscrossingprovidesonlyavery

limitedprotectionithechequeislostorstolen;essentiallyitmeans

onlythatthechequeshouldnotbecashedbutshouldbepaidinto

abankaccount.Thisprotection canbe improvedbywriting the

ollowingwordsbetweenthetransverselines:-

accountpayeeonly;or

nottranserable.

Cheques - Not Negotiable

Chequesthathavebeenmarkedwithtransverseparallellinesacross

therontwiththewordsnotnegotiableusuallywrittenbetween

theparallellines.Ichequeshavebeencrossedinthisway,andithey

namethepayee,orbearer,thepersonwhohasdrawnitwillhave

somelimitedprotectioniitislostorstolen.

Cheques - Not Transerable/Account Payee Only

Chequesthathavebeenmarkedwithtransverseparallellinesacross

theront,withthewordsnottranserableornontranserable,

orthewordsaccountpayeeora/cpayee(withorwithoutthe

wordonly),usuallywrittenbetweenthelines.Chequescrossedin

thiswayarepayableonlytothepartynamedonthecheque.Such

chequesoerthegreatestprotectionitheyarelostorstolenasthey

mustbedepositedinanaccountinthenameothepayee.

Cleared Balances

Availablebalancesabletobewithdrawn.

Commissions

Chargesorprovidingservices,orexample,commissionischarged

bythebankwhenCustomersbuyorselloreignexchange.

Credit

Anarrangementbywhichthebankprovidesundstoacustomer

inexchangeorapromisetorepayatalaterdate,alongwithany

interestandchargespayable.

Credit Facilities

Thesemaytakeseveralorms,orexample,Overdrats,loanssecured

againstagivenSecurityorunsecuredloans.

Credit Reerence Agencies

CompaniesthatholdrecordsoaCustomersCredithistory.

Customers

AsusedinthisCode,CustomersmeansallCustomersoaparticipating

bank(generallyreerredtoasyouoryourinthisCode).

Debt Collection Agencies

Companieswhosebusinessistocollectdebtsrompeoplewhohave

ailedtomeetanyobligationtopay.

Deault Rates

HigherratesointerestchargedwhenCustomersdrawundsrom

theirbankwithoutpriorarrangementorwhenapprovedOverdrat

limitsareexceeded.DeaultRatesointerestmayalsobecharged

onCreditFacilitiesischeduledrepaymentsaremissed.

Deaults

Failure torepayCredit ortomeet otherconditionsthatwere

promisedoragreedto.

Direct Credits

Arrangementsbywhichpayments,suchassalaries,aredirectlycredited

toCustomersbankaccounts.

Direct Debit Initiator

ThepartywhoinitiatesaDirectDebitunderaDirectDebitSystem

romacustomersaccountatthecustomersbank.


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46 47

Direct Debits

Arrangementsbywhichacustomerauthorisesthebanktomake

paymentsdirectly romtheiraccountsto athirdpartywhohas

initiatedthe arrangement.Theamountscan bexedor variable.

Ivariable,theDirectDebitInitiatormustgivepriornoticetothe

customerovariations.

Disclosure Statement

DisclosuretoCustomersonancialandotherinormationbybanks

asrequiredbytheReserveBankoNewZealandAct1989.

Dishonoured ChequesChequesthatarepresentedorpaymentandarenotpaid,leavingthe

persontowhomthechequeispayablewithoutthemoney.

EFTPOS (Electronic Funds Transer at Point o Sale)

AmethodopaymentbywhichCustomerscanuseCardstopay

electronicallyorgoodsorservicesortoobtaincash.

Exchange Rates

Theratesatwhichyourbankwillbuyorselloreigncurrency.

Finance Rates

ThistermisusuallyusedinrelationtoaCreditFacilityromabank.

Inthiscontext,itmeanstheratethatindicatesthetotalcostothe

CreditFacility(interestplusanyees)asanannualpercentageothe

amountotheCreditFacility.UndertheCreditContractsAct1981,

thismustbesetoutinwritingonmostloanagreements.

Fixed Rates

Ratesointerestthatstaythesame,usuallyoraspeciedperiod

otime.

Guarantees

Legalarrangementsbywhichsomeone(theguarantor)promisesto

repaythedebtsoaCustomerithatCustomerDeaultsinmaking

repayment.

Inorm

AsusedinthisCode,inormreerstoanywritten(inelectronicor

paperorm)ororalcommunicationsrombankstoCustomers,whether

deliveredinpersonornot,aboutanybankproductsorservices.

Internet Banking

MeansuseoacomputerordevicetoconnectyoutoourInternet

BankingsystemsviatheInternetandcarryoutarangeotransactions

andobtaininormationaboutyouraccounts

Joint and Several

Relatestoliabilityorobligationstoabankincludingunderajoint

accountorCreditFacilitywheretheliabilitylieswith:-

(i) allothejointaccountorCreditFacilityholderstogether;

or

(ii) anyoneormoreothejointaccountorCreditFacilityholders

individually.

AnaccountorCreditFacilityholdermayalsobejointlyandseverally

liablewiththeirguarantor.

Key Inormation Summary

AsummaryothekeyeaturesintheDisclosureStatement.

Merchants

AnysuppliersogoodsorserviceswhoacceptpaymentsbyCard.

Overdrats

Thewithdrawalo undsrombankaccounts, toa greater total

amountthanaCustomersCredit balance,withor withoutprior

arrangement.

Passwords

Acondential combinationo lettersand/or numbersused by

Customerstoestablishtheirrighttoaccesstotheiraccounts.


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48 49

PINs (Personal Identication Numbers)

CondentialnumbersusedbyCustomerstoaccesstheiraccountsvia

ATMs,EFTPOSacilities,theInternetandotherelectronicbanking

servicessuchastelephonebanking.

Reasonable Accommodation

Meansnecessaryandappropriatemodicationandadjustmentsnot

imposingadisproportionateorundueburden,whereneededina

particularcase,toensuretopersonswithdisabilitiestheenjoyment

orexerciseonanequalbasiswithotherswhouseourservices.(This

denitionhasbeenadaptedromArticle2,DratConventionon

theRightso PersonswithDisabilities,Eighth session,NewYork,

14-25August2006).

Sae Custody

Aserviceoeredbysomebanksbywhichvaluableitemssuchas

housetitles,willsorsharecerticatescanbedepositedinabankor

sae-keeping,usuallysubjecttoaee.

Security

Thepromisingoassets(suchastitlestoproperty,liepoliciesand

shares)tobanksassupportorCreditFacilitiesgrantedtoCustomers.

Amortgagedocumentis acommontype oSecurity, inwhich

propertyisusedasSecurityoraloan.ItheCreditFacilitiesarenot

repaid,thebankspositionissecured,whichmeansthatitcansell

theassetstomeettheoutstandingdebts.

Special Answers

Customerrequestsorpromptclearanceocheques,usuallysubject

toaee.

Stop Payments

Atermcommonlyusedtodescribethestoppingoachequeorsome

othertypesopayments.

Term Deposits (Investments)

Acontractbetweenacustomerandabank,wherebythecustomer

lodgesadepositwiththebankoramutuallyagreedperiodotime.

Bankspayasetrateointerestonthesedeposits.Ithecustomer

wishestoaccessundsbeorethematuritydate,theremaybeaee

chargedand/orinterestpenaltyorbreakingthiscontract.

Third-Party Security

Securityprovidedbyapersonwhoisnottheborrower.

Travellers Cheques

SpeciallyprintedchequesavailableorCustomerstopurchase,usuallyoruseoverseas,toobtaincashandpayorgoodsorservices.Travellers

Chequesareavailableinxedamountsinanumberomajorworld

currencies.Securityismaintainedbysigningthechequeatthetime

oreceiptandaddingasecondmatchingsignatureonpresentation

orpayment.Acommissionisgenerallypayableonthepurchaseo

thesecheques.

Unauthorised Transactions

Itemsrecordedon anaccount that havebeenmadewithoutthe

customersauthority.

Variable Rates (also known as Floating Rates)

Ratesointerestthatmaybechangedduringtheperiodoborrowing.

OtenVariableRatesonborrowingsbyCustomersarelinkedtoa

banksbase(orprime)rate.

Withholding Tax (Resident (RWT) and Non-Resident

(NRWT)) and Approved Issuer Levy

Governmenttaxesoninterestincomethatbanksandotherinterest

payersmustdeductrominterestpaymentstoresidentsandnon-

residents.


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50 51

11.2 principallegislationandinternationalbankingstandards

PrincipalStatutesGoverningBankinginNewZealand

BillsoExchangeAct1908

ChequesAct1960

CompaniesAct1993

ConsumerGuaranteesAct1993(doesnotapplytobusinessCustomers)

CreditContractsAct1981

CreditContractsandConsumerFinanceAct2003

CriminalRecords(CleanSlate)Act2004

ElectronicTransactionsAct2002

FairTradingAct1986

FinancialTransactionsReportingAct1996

HumanRightsAct1993

InvestmentAdvisers(Disclosure)Act1996

LawyersandConveyancersAct2006

MinorsContractsAct1969

NewZealandBilloRightsAct1990

PartnershipAct1908

PersonalPropertySecuritiesAct1999

PrivacyAct1993

ProceedsoCrimeAct1991

PropertyLawAct1952

ProtectionoPersonalandPropertyRightsAct1988

ReserveBankoNewZealandAct1989

SecuritiesAct1978

SecuritiesMarketsAct1988

TerrorismSuppressionAct2002

UnclaimedMoneyAct1971

StatutesProvidingAccessorThirdPartiestoCustomer

InormationHeldbyBanks

AdministrationAct1969

ChildSupportAct1991

CommissionsoInquiryAct1908

CompaniesAct1993

CustomsandExciseAct1996

FairTradingAct1986

FisheriesAct1996

FinancialTransactionsReportingAct1996

GamingDutiesAct1971

GoodsandServicesTaxAct1985

HealthandDisabilityServices(Saety)Act2001

IncomeTaxAct2004

IncorporatedSocietiesAct1908

IndustrialandProvidentSocietiesAct1908

InsolvencyAct1967

LawPractitionersAct1982

MutualAssistanceinCriminalMattersAct1992

ProceedsoCrimeAct1991

PublicFinanceAct1989

ReserveBankoNewZealandAct1989

SecuritiesAct1978

SeriousFraudOceAct1990

SocialSecurityAct1964

StudentLoanSchemeAct1992

SummaryProceedingsAct1957

TaxAdministrationAct1994

TerrorismSuppressionAct2002

InternationalAcceptedBankingStandards

InternationalChamberoCommercesettingoutUniormRulesorCollections.

InternationalChamberoCommercesettingoutUniormCustomsandPracticeor

DocumentaryCredits.

ISDA-InternationalSwapandDerivativesAssociation,Inc.


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52 53

indexA

access to services15

accountssee alsocards

c losure o14

identicationrequirements12

moving13

newproductsorservices12

opening12

rightsandobligations12

s tatements40

suspensiono 13

acquiring bank

consenttochange30

denitiono32

advertising material8,10,12

Approved Issuer Levy11,49

ATMs

acces s to 15

denitiono42

automatic payments

acces s to 15

denitiono 42

B

bank cheques

denitiono42

termsandconditions18

bank communications9

bank inormation, disclosure o10

bank statements 40banking legislation 50

Banking Ombudsman Scheme

contactdetails5

pur pose5

reerralocomplaints5

banking standards, international52

banking terms, glossary o4249

bill payments

acces s to 15

denitiono42

branches

acces s to 15

denitiono42

business account, suspension o13

C

cards see also credit cards

additionalcards26

closureoaccount14

denitiono43

identicationrequirements26

issu eo26 liabilityorloss28

reportingloss,thetorunauthoriseduse27

secur ity26


transactionlimits26

cash cards, denition o43

charge cards, denition o43

chargebacks

denitiono43

process28

cheques

al tered17

bankcheques18

c le arance 17

closureoaccount14

c rossing44

d ishonoured17,46

eesandcharges17 misplacedinprocessing18

obtainingspecialanswerorearlyclearance17

secu rity17

stopping17

clearance o unds

cheques17

paymentservices15

cleared balances, denition o44

Code o Banking Practice 20023

Code o Banking Practice 2007

availab il ity4

dateeective3

participatingbanks56

pur pose3,4

rev iewo3

commissions, denition o44

communications8

company account, suspension o13

complaints procedures6

condentiality8

credit, denition o45

credit cards see also cards

denitiono43

disputedtransactions28

inormationaboutrisks27

provisiono27


reversalotransactions28

Credit Contracts Act 1981, compliance with

20

credit acilities

approvalo 20

debtcollection21

denitiono45

disclosurestoCreditReerenceAgencies21

eesandcharges20

independentreview22

inormationabout20

jointliability21

legalcompliance20


Credit Reerence Agencies

denitiono45

d isclosuresto21

inormationrom20

customer inormation

accuracy8

pr ivacy8

statutesauthorisingdisclosure8,51

D

debit cards, denition o43

debt collection21

Debt Collection Agencies, denition o45

deaults, denition o45

deault rates, denition o45

deposits, disclosures10

direct credits

acces s to 15

denitiono45

direct debits

acces s to 15

denitiono 46

disabled customers5,26

disclosure

bankinormation10

customercreditinormation22

customerinormation9,51

PINsandpasswords24

Disclosure Statement10,46

E

EFTPOS

acces s to 15

denitiono46

elderly customers5

electronic card transactions15

exchange rates

denitiono46

provisionoinormation38

F

ees and charges

bankcheques18

cheques17

commissions,denitiono44

creditacilities20

d isclosureo 10

oreignexchangeservices38

noticeovariation9

paymentservices15

nance rates, denition o46

xed rates, denition o46

foating rates, denition o49


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54 55

oreign exchange services 38

orward oreign currency transactions 38

und transers15

G

glossary o terms 4249

government charges11

guarantees, denition o46

guarantors22

I

identication requirements

issueocards26

openinganaccount12

purpose o8

incorporated society account, suspension o

13

independent advisers, co-operation with5

insurance services 38

interest rate changes, notice o9

international banking standards 52

international money transers38

Internet banking

acces s to 15,33

denitiono47

liabilityorlosses32,35

provisionoinormation32,33,34

secu rity32,33,34

transactionlimits34

investment services38

J

joint account, withdrawal rom or stopping 14

joint and several liability47

joint credit acilities 21

K

Key Inormation Summary10,47

L

legal charges10

legislation

authorisingdisclosureocustomerinormation

51

banking50

liability

cards,PINsorpasswords28

joint account14

jointcreditacilities21

loans seecredit acilities

lost cards

l iabi li tyor28

repor ting 27

lost chequebook, reporting17

M

managed unds38

marketing material10,12

merchant card services30

merchants, denition o47

multi-unction cards, denition o43

N

New Zealand Bankers Association

contactdetails4

member s56

Non-Resident Withholding Tax11,49

O

overdrats, denition o47

overseas bank charges10

P

passwords

denitiono47

issu eo24

liabilityordisclosure28


secu rity25

suitabi li tyo 24

payment services

clearanceounds15

errors16

eesandcharges15


variationo15

personal inormation seecustomer

inormation

PINs

denitiono48

i ssue o24

liabilityordisclosure28


secur ity25

suitabi li tyo 24

Privacy Act 1993, compliance with 8

products and services see also terms and

conditions

acces s to 15

complaint s6 insuranceservices38,39

introductiono12

investmentservices38

paymentservices15

withdrawalo14

promotional material8,10,12

R

reasonable accommodation 5,48

reporting loss, thet or unauthorised use o

card, PIN or password27

reporting lost chequebook17

Resident Withholding Tax11,49

S

sae custody

acces s to 38

denitiono48

same-day cleared payments15securities trading acilities38

security

cards26

cheques17

commitmentto5,32

PINsandpasswords24

security or debt

denitiono48

providers o2021

third-partysecurity,denitiono49

special answers17,48

statements 40

statutes

authorisingdisclosureocustomerinormation

51

banking50

stop payments, denition o48

T

taxation

denitiono49

deposi ts 11

telephone banking 15

telephone communications, recording o8

term deposits, denition o49

terms and conditions

bankcheques17

cards26

creditacilities20

depositinterestrate10

d isclosureo 10

liabilitiesrecards,PINsorpasswords28

merchantcardservices30

noticeovariation9

paymentservices15

third parties

charges rom10

internetbanking36

PINandpasswordsecurity25

statutesprovidingaccesstocustomer

inormation8,51

third-party security, denition o49

transaction limits26

travellers cheques, denition o49

U

unauthorised transactions, denition o49

V

variable rates, denition o49

W

website, communications via9,12


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56

participatingbanks

MembersoftheNewZealandBankersAssociation

ANZ National Bank Limited operating as:-

ANZ Bank

The National Bank o New Zealand

ASB Bank Limited

Bank o New Zealand

Citibank, N.A.

The Hongkong and Shanghai Banking Corporation Limited

Kiwibank Limited

TSB Bank Limited

Westpac Banking Corporation (New Zealand division)

Some subsidiar ies and related companies o the above member banks

are excluded rom coverage under this Code. You may obtain a ull l ist

o such subsidiaries rom the Ofce o the Banking Ombudsman.


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code of banking practice

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