Cash Service Company AD

G E N E R A L T E R M S A N D C O N D I T I O N S OF SERVICING CSC AD CLIENTS

SOFIA, 2010

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CONTENTS

І. GENERAL................................................................................................................................ 3

ІІ. ACCEPTANCE OF BULGARIAN BANKNOTES AND CIRCULATION COINS ............................... 7

ІІІ. WITHDRAWAL OF BULGARIAN BANKNOTES AND CIRCULATION COINS ............................ 8

ІV. VERIFYING THE ACTUAL VALUE OF BANKNOTES AND CIRCULATION COINS ..................... 9

V. VERIFYING BALANCES AND LOADING ATM CASSETTES ..................................................... 10

VІ. ADJUSTING DIFFERENCES BETWEEN VERIFIED ACTUAL AND DECLARED VALUE OF

BANKNOTES AND CIRCULATION COINS ............................................................................................. 11

VІІ. ACCEPTANCE/DELIVERY OF SEALED PARCELS FOR/FROM SAFEKEEPING WITHOUT

PROCESSING ....................................................................................................................................... 13

VІІІ. IT SUPPORT OF CSC SERVICES ......................................................................................... 13

ІХ. PAYMENT FOR SERVICES DONE ........................................................................................ 14

Х. SETTLEMENT OF RELATIONS IN THE EVENT OF DAMAGES ............................................... 14

ХІ. GENERAL TERMINOLOGY .................................................................................................. 15

S T A N D A R D ....................................................................................................................... 16

FOR PACKAGING AND PREPARARTION OF SEALED PARCELS ................................................ 16

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І. GENERAL

Art. 1.(1) These General Terms and Conditions shall set forth the terms and procedures of

servicing Cash Service Company AD (CSC) clients with regard to: 1. Acceptance (depositing) of Bulgarian banknotes and coins at declared value for their

processing as per the standards of BNB Ordinance No 18 on the Control over Quality of Banknotes and Coins in Cash Circulation;

2. Withdrawal upon request of Bulgarian banknotes and coins at declared value; 3. Acceptance of sealed parcels (SP) of foreign currency notes and coins at declared value

for processing, safekeeping and delivery at declared value upon client owner’s request; 4. ATM monitoring and management services; 5. Acceptance of sealed parcels at or without declared value for safekeeping without

processing and their delivery upon client owner’s request; 6. Requirements for preparation of a sealed parcel – Standard for Packaging and

Preparation of Sealed Parcels (Appendix 1); 7. Admission to a loading dock; 8. Verifying the actual value of sealed parcels of notes and circulation coins in BGN and

foreign currency accepted for processing; 9. Adjusting of differences between actual (verified) and declared value of sealed parcels of

notes and circulation coins in BGN and foreign currency;

10. Servicing cash flows of clients (legal and natural persons) on bank accounts;

11. Coordinating transportation routes of CIT companies in joint activities of servicing CSC clients;

12. Collecting fees from clients as per the requirements of these General Terms and Conditions;

13. Keeping an automated Sealed Parcel Registry in the CSC IT system with a minimum of required requisites:

Unique number;

Date of acceptance/delivery;

Time of entry into the CSC IT system;

Client’s name;

Currency type and sealed parcel value (this requisite is optional for sealed parcels accepted at CSC for safekeeping without processing);

(2) Acceptance, processing and withdrawal of sealed parcels shall only be on behalf of and for the account of CSC clients – legal and natural persons.

(3) Checking, loading and monitoring ATMs shall be carried out only on behalf of and for the account of the bank, which is their owner.

Art. 2. (1) The relations between CSC and client banks under art. 1, para 1, items 3, 4 and 5 shall be regulated by individual contracts.

(2) The relations between clients-non-banks and CSC shall be regulated by individual contracts.

(3) The relations between CSC client banks and their clients shall be regulated by contracts between themselves.

(4) The relations between CSC and clients, using the services under art. 1, para 1, items 10 and 11, shall be regulated by an individual contract.

Art. 3. (1) Delivery (depositing)/acceptance (withdrawal) of sealed parcels with/from CSC shall be carried out by a person (hereinafter referred to as “client’s representative”), authorized by the persons officially representing the client to CSC with a duly notarized letter of attorney.

(2) The letter of attorney shall be deemed valid provided it specifies: the full name of the client’s representative; unified identification number (UIN); ID document number; date of issue of the ID document; name of issuing authority; clear and exhaustive description of the powers

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conferred to him, on behalf of and for the account of the client, to take actions, which bind him to third parties on the territory of the country; term of validity of the letter of attorney, and signatures of the client’s legal representatives.

(3) A client’s representative may be a service provider within the meaning of BNB Ordinance No 18, to whom the client has delegated the rights and obligations for conducting activities and operations with banknotes and coins on his behalf and for his account.

(4) Where a client has delegated, under a contract and following the above procedure, the rights and obligations for carrying out activities and operations with banknotes and coins on his behalf and for his account to a service provider, the client or the service provider, based on duly authorized powers, shall submit to CSC legalized by the authorizer copies of the letter of attorney bearing the inscription “true to the original”, signed and wet-stamped, as well as specimens of the signatures of the authorized persons. Signatures may as well be affixed in the presence of the head of the CSC territorial branch, servicing the client.

(5) Where a client has delegated under a contract the rights and obligations for carrying out activities and operations with banknotes and coins on his behalf for his account to a service provider, the client shall officially notify CSC thereof, enclosing along with the notification a certified copy/excerpt of the contract, excluding the financial part.

(6) The client and/or the person, duly authorized by him for this, shall forthwith notify CSC in writing of the changes made in the letters of attorney of his representatives. Any change in the letters of attorney, revocation of the letters of attorney or any other change shall take effect with regard to CSC from the date of receipt of the written notification thereof. The date of receipt of such notification shall be the date of the reference number assigned by CSC upon its receipt.

(7) The client or the person, duly authorized by him for this, shall notify CSC in writing of any change in his legal status, the persons representing him, the name, seat and registered office. All changes shall take effect with regard to CSC from the date of receipt of the written notification. The date of receipt of the notification shall be the date of the reference number assigned by CSC upon its receipt.

(8) The provisions of the foregoing two paragraphs shall also apply in cases, where the changes have been recorded in a public registry.

(9) The client shall be liable for all losses, which are a direct and immediate consequence of the circumstance that CSC has not been duly and timely notified of changes in the powers, including for all damages incurred through the fault of the person(s) authorized by him.

Art. 4. (1) The client shall require from the service provider to respect the requirements of these General Terms and Conditions, which shall be explicitly specified in the contract concluded between them. He shall be obliged to present to the service provider a copy of these General Terms and Conditions, which must be an integral part of the contract concluded between them.

(2) Upon entering into contract with CSC AD, the client shall serve an official notification to CSC to the effect that the requirements of the foregoing paragraph have been respected.

Art. 5. The banknotes and circulation coins accepted and withdrawn shall be packaged in standard types of packaging and in quantities in keeping with the requirements of these General Terms and Conditions.

Art. 6. (1). For each service provided by CSC, as per the service contract, the client shall submit an electronic request.

(2) Where the request can not be submitted electronically to CSC, it shall be submitted on paper addressed to the CSC head office and signed by the persons authorized to represent the client, or as an exception, by fax or e-mail, in keeping with the requirements of art. 7, para. 3.

Art. 7. (1) Clients shall submit requests for withdrawal beforehand, but no later than 3 p.m. on the business day when the transaction is to be effected and the sealed parcel received.

(2) Requests received after the above deadline will be executed, if possible, and will be additionally charged as “Express request”.

1. Where an Express request is executed on the same business day, the client shall be duly notified within 30 minutes from receipt of the request.

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2. Where executed on the same day, an Express request shall be charged as such following the Tariff of Fees, which CSC applies in its operation.

3. Where it is not possible to execute it on the same day, an Express request shall be executed on the following day and shall be charged as an ordinary one.

(3) Every request submitted by a client shall contain the following requisites:

Unique client number of the request

CSC territorial branch executing the request

Identification of the requesting client

Total requested amount

Currency of the request

Type of the request, which specifies the client’s funds, from which the sealed parcel is to be executed: funds with BNB; own funds; held in safekeeping, or any other special funds, all of which described in the Standard for Electronic Exchange with CSC.

Identification of the recipient client

Denomination structure of the requested amount

Date of dispatch of the requested sealed parcels (RSP) from the Company: (4) A client’s request may contain other requisites as specified in the Standard for

Electronic Exchange with CSC. A copy of the standard shall be provided to the respective client upon signing a contract with CSC. The client shall be notified in writing ten days prior to putting into operation of modifications in the Standard for Electronic Exchange.

(5) The CSC IT system shall assign reference numbers to the sealed parcels requested for withdrawal from BNB and shall be communicated electronically to the client. The reference number shall have the following structure:

Value date - YYMMDD /аааааа/ - BAE (BAU, bank addressable unit) code of the client, of his branch, respectively, without the check digit bbbbbbb And the following specific characters: a/ identifying the transaction /service/ type: 1 – “acceptance;” 2 – ”withdrawal”, 3 –

”verification of foreign currency availability”, 4 – ”inspection and loading of ATM cassettes”, 5 – ”safekeeping of a sealed parcel”.

b/ CSC territorial branches: 01 – Plovdiv, 02 – Varna, 03 – Pleven, 04 – Bourgas, 08 – Sofia-Ovcha Kupel;

Art. 8. (1) After CSC deposits sealed parcels of Bulgarian banknotes and circulation coins of a client bank with BNB, BNB shall immediately transfer their declared value to the settlement account of the relevant bank before their processing.

(2) After verification of the content of ATM cassettes received at CSC, the banknotes found shall be deposited with BNB, if no other arrangement exist, upon which BNB shall immediately transfer their value to the settlement account of the respective bank.

(3) Before withdrawal of Bulgarian banknotes and circulation coins from the settlement account of a client bank with BNB, the bank shall transfer in favour of BNB the value of the Bulgarian banknotes and circulation coins declared for withdrawal, including the banknotes for ATM cassettes.

Art. 9. (1) Upon acceptance at CSC of sealed parcels of Bulgarian banknotes and coins, including ATM cassettes, which remain in the client’s ownership and are not deposited with BNB (own funds), CSC shall record the accepted sealed parcels in its IT systems with the amount of the declared value and shall transmit the information electronically to the client’s IT system.

(2) Upon withdrawal of own funds in Bulgarian banknotes and circulation coins, including for ATM cassettes, which are in CSC safekeeping, the amount of withdrawal requests shall not exceed the available funds of the client held at the respective CSC territorial branch. CSC shall record the delivered sealed parcels in its IT system with the amount of the request and shall transmit the information electronically to the client’s IT system.

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(3) Upon acceptance at CSC of sealed parcels of foreign currency from a client, CSC shall record the foreign currency received in its IT system and shall immediately reflect the amount by type of currency prior to processing of the sealed parcels.

(4) Upon delivery of sealed parcels of foreign currency to a client, CSC shall reflect in its IT system the delivered foreign currency by type and value of the declared foreign currency.

Art. 10. (1) Where a difference between the actual and declared value of a deposited sealed parcel of Bulgarian banknotes and coins of a client bank with BNB is found, CSC shall draw up a written statement of difference. BNB shall transfer the amount of the difference as per the statement and shall deduct it on/from its settlement account to/from the settlement account of the relevant bank, as the case may be.

(2) The bank shall give its explicit consent to an ex-officio execution of the actions under art. 10, para 1.

Art. 11. For differences found between the actual and declared value of a deposited sealed parcel of banknotes and coins, owned by a client, CSC shall draw up a written statement of difference and shall adjust the client’s balance in the CSC IT system with the amount of the difference, while this shall also be communicated to the client’s IT system.

Art. 12. (1) Where CSC finds in a sealed parcel a Bulgarian banknote or circulation coin, which gives rise to suspicion of being non-genuine or altered (counterfeit), it shall be considered as deficit. Such banknote or coin shall be sent for expert’s appraisal to BNB with postage costs being borne by the client, in whose sealed parcel the banknote or coin has been found.

(2) A Bulgarian banknote, which CSC finds in a sealed parcel, whose value can not be ascertained when verifying the sealed parcel’s actual value as this requires specialised tools and devices, as well as a Bulgarian banknote, which has been damaged by an activated anti-theft device, shall be considered a deficit. Such a banknote or coin shall be sent to the BNB for expert’s appraisal with postage costs being borne by the client, in whose sealed parcel the banknote or coin has been found.

(3) A damaged foreign currency banknote or coin found by CSC in a client’s sealed parcel shall be considered as deficit and shall be returned to the client.

(4) A foreign currency banknote found by CSC in a client’s sealed parcel, which gives rise to suspicion of being counterfeit, shall be considered as deficit and shall be sent to BNB for expert’s appraisal. The postage costs shall be borne by the client, in whose sealed parcel the banknote or coin has been found.

(5) In the cases under art. 12, paras 1 – 4, CSC shall apply the procedures under BNB Ordinance No 18, to which the client has explicitly agreed in the Contract between the parties.

Art. 13. (1) In order to be granted access to the loading docks of a CSC territorial branch, a client or service provider within the meaning of art. 3, para. 4, with duly authorised powers, shall submit to the CSC head office as follows:

1. a list of the full names, UIN, place of birth, permanent address and pictures of his representatives and of the persons authorised to guard and transport the sealed parcels;

2. a list of the sealed parcels transportation vehicles specifying make, model, colour, company mark and registration number;

(2) The information of persons and vehicles under para 1, items 1 and 2 shall be specified for each of the CSC territorial branches in the country;

(3) A client or service provider under para 1 shall be liable for the timely communication of the information under para 1, as well as for the timely update of the information under para 1 in the event of changes.

(4) A client or service provider under para 1 shall be liable for any adverse consequences, including damages, which are a direct and immediate consequence of the fact that CSC has not been duly and timely notified of changes occurring in data and circumstances declared in the lists in para 1, items 1 and 2.

Art. 14. (1) Based on the information submitted under art. 13. paras 1 and 2, CSC shall prepare permits for:

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1. CSC client’s representatives; 2. persons authorised to guard and transport a client’s sealed parcels; 3. a client’s sealed parcels transportation vehicles.

(2) The permits shall be valid for providing access to a loading dock only in those of the CSC territorial branches, which are specified in accordance with art. 13, para 2.

Art. 15. (1) Access to a loading dock of a CSC branch for each individual case shall be given after the persons in charge of the CSC access control verify the correspondence between the data provided under art. 13, paras 1 and 2 and the permits prepared under art. 14, paras 1 and 2, and examine as necessary the vehicle in the sanitary area in front of the transport entrance of the loading dock.

(2) Where necessary, admission of persons under art. 13 to the CSC loading docks shall be carried out following a schedule coordinated between the interested parties.

(3) Servicing of the authorised persons admitted to a loading dock shall take place after the loading dock employees have verified for each individual case that the authorised persons’ ID card data coincide with the data in their letters of attorney.

Art. 16. CSC shall be entitled to refuse a permit to a loading dock or to unilaterally revoke a granted right of access of persons or vehicles based on evidence that these do not conform to the CSC safety requirements.

ІІ. ACCEPTANCE OF BULGARIAN BANKNOTES AND CIRCULATION COINS Art. 17. (1) Packaging and preparation of banknotes and circulation coins eligible for acceptance at CSC shall be done in line with the Standard for Packaging and Preparation of Sealed Parcels /Appendix No 1 to the General Terms and Conditions of Servicing CSC AD’s clients with banknotes and coins at declared value/.

(2) Exception to the Standard for Packaging and Preparation of Sealed Parcels shall be allowed, where arranged in the contract signed between CSC and the client.

Art. 18. Each sealed parcel prepared by a client shall be supported by a deposit document (deposit slip, acceptance report (inventory list), deposit statement, etc.)

Art. 19. (1) The CSC receiving employee shall refuse to accept a sealed parcel in the following circumstances:

1. Non-compliance with the Standard for Packaging and Preparation of Sealed Parcels requirements;

2. Incorrect, incomplete, unclear and/or illegible deposit document, as well as crossing outs, thickenings, deletions, additions or corrections in them;

3. Variation between the amount in the deposit document and the total amount on the label of the sealed parcel;

4. Incorrectly filled in label on the package of the sealed parcel; 5. Variation between the amount in the deposit document and the sum total of

the amounts specified on all labels comprising the sealed parcel; 6. Lack of the required powers of attorney of the person delivering the sealed

parcel; 7. Difference between the signature on the ID card of the client’s representative

delivering the sealed parcel, his signature on the deposit document and the specimen submitted to CSC;

8. Irregularities in the condition of the package – compromised integrity, gluing, sewing, or sealing, or traces of tampering;

9. Compromised integrity of an ATM cassette, one-time-use seal or traces of tampering.

10. Unclear imprint of the lead seal on the package.

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(2) The refusal under para 1 shall be documented by the CSC employee by drawing up a protocol of findings, specifying the reasons for the refusal (Appendix No 2).

(3) The protocol of findings shall be prepared in duplicate and shall be signed by the CSC employee and the client’s representative.

(4) A refused sealed parcel: 1. shall not be accepted by CSC and shall remain in the client’s responsibility or in

the responsibility of his authorised representative; 2. if the client’s representative requests, and the client – owner of the sealed

parcel – explicitly so instructs, the irregular packages shall be repacked in CSC packages with the address label being filled in and signed by the client’s authorised representative.

3. the sealed parcel shall be accepted in the new package and the deposit document (deposit slip) shall explicitly reflect the fact that the sealed parcel has been repackaged by the agent. Notification of a repackaged sealed parcel deposited with a CSC territorial branch shall be duly e-mailed to the e-mail address provided by the client as well as to Production Activities Directorate.

4. A sealed parcel prepared pursuant to item 2 and accepted pursuant to item 3 shall be processed at CSC only following receipt of confirmation from the client – owner of the sealed parcel.

Art. 20. (1) Acceptance of a sealed parcel at CSC shall be certified by the signatures on the deposit document of the CSC employee who accepted the sealed parcel and the client’s representative who delivered the sealed parcel.

(2) A copy of the deposit document supported with the inventory list of the sealed parcel shall remain with the CSC employee, and the second copy shall be returned to the client’s representative who delivered the sealed parcel.

(3) Acceptance of sealed parcels of foreign currency banknotes or coins of declared value for processing, safekeeping and delivery at declared value on client owner’s request shall be carried out pursuant to paras 1 and 2 hereof and the Contract concluded between CSC and the client.

ІІІ. WITHDRAWAL OF BULGARIAN BANKNOTES AND CIRCULATION COINS

Art. 21. (1) Upon each withdrawal request CSC shall prepare a sealed parcel of new and/or fit banknotes and circulation coins received from the BNB vault or from the client’s own funds.

(2) CSC may not prepare a sealed parcel of Bulgarian banknotes and circulation coins following the denomination structure specified in the withdrawal request.

1. in the event of applying art. 21, para 2, CSC shall notify the client electronically; 2. in the event of refusal on the part of the client on the grounds of CSC’s failure to

conform to the requested denomination structure, the client shall notify CSC electronically;

3. the refusal under art. 21, para 2, item 2 shall not be charged following the Tariff of Fees applied by CSC to cases of "withdrawn request".

(3) An inventory list shall be drawn up for each sealed parcel, specifying the addressee, unique number of the sealed parcel, number of packages, number of banknotes and circulation coins by currency type, denominations, value per denomination and total value.

(4) CSC shall draw up a withdrawal document (dispatch sheet) for the sealed parcels prepared on client’s request.

Art. 22. (1) CSC shall proceed to execution of a request for withdrawal from the BNB following receipt of notification from the BNB that the relevant bank has transferred the value of the requested Bulgarian banknotes and/or circulation coins from its settlement account to a BNB account.

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(2) CSC shall proceed to execution of a request for withdrawal from a client following verification in the CSC IT system of the availability of the required banknotes and coins held by that client in the vaults of the respective CSC territorial branch.

Art. 23. The client’s representative, receiving the sealed parcel, may decline to accept it in the following events:

1. Incorrect, incomplete, unclear and/or illegible inventory list of the sealed parcel, as well as crossing outs, thickenings, deletions, additions or corrections in it;

2. Variation between the amount in the withdrawal document and the total value of the sealed parcel;

3. Variation between the data on each package label and on all packages as a whole with the data specified in the inventory list of the sealed parcel and the data specified in the withdrawal document.

4. Irregularities found in the condition of the packages – compromised integrity, gluing, sewing, or sealing and traces of tampering;

5. Irregularities found in the labelling of a package. Art. 24. The CSC employee delivering the sealed parcel may refuse delivery in the following

events: 1. Lack of required powers of attorney of the client’s representative receiving the

sealed parcel; 2. Variation between the signature on the ID card of the client’s representative

receiving the sealed parcel, his signature on the withdrawal document and the specimen submitted to CSC.

Art. 25. (1) The refusals under the foregoing two articles shall be documented by the person refusing delivery/acceptance of a sealed parcel by drawing up a protocol of findings specifying the reasons thereof (Appendix No 2).

(2) The protocol of findings shall be drawn up in duplicate – one for each party – and shall be signed by the CSC employee and the client’s representative.

Art. 26. (1) Withdrawal shall be certified by the signatures of the CSC employee delivering the sealed parcel and the client’s representative receiving the sealed parcel on the two copies of the withdrawal document.

(2) Upon withdrawal, the CSC authorised employee delivering the sealed parcel shall keep a copy of the withdrawal document and shall hand over the other copy along with the inventory list of the sealed parcel to the client’s representative receiving the sealed parcel.

ІV. VERIFYING THE ACTUAL VALUE OF BANKNOTES AND CIRCULATION COINS

Art. 27. Verifying the actual value of banknotes and coins in clients’ sealed parcels, accepted at declared value, shall be carried out by persons assigned by written order of the head of the respective CSC territorial branch.

Art. 28. (1) CSC shall verify the actual value of a sealed parcel of Bulgarian banknotes or circulation coins accepted for processing by branches of client banks within 20 (twenty) business days from the date of their acceptance, and under explicit arrangement – within shorter timeframes.

(2) CSC shall verify the actual value of a seal parcel containing foreign currency banknotes and coins within 2 (two) business days from the date of acceptance of the sealed parcel.

(3) CSC shall verify the actual value of a sealed parcel of Bulgarian banknotes or circulation coins received from clients other than bank branches, within 5 (five) business days from the date of acceptance, and under explicit arrangement – within shorter timeframes.

(4) CSC shall verify the actual value of returned ATM cassettes by the end of the next business day following acceptance of the cassettes.

(5) CSC shall verify the actual value of a sealed parcel without the client’s or the client’s representative witness.

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(6) Upon a client’s written request and under prior arrangement between the parties, a client’s representative may witness the verification of the actual value of a sealed parcel at CSC.

Art. 29. (1) The client shall verify the actual value of a CSC prepared sealed parcel within three business days from the date of its acceptance.

(2) The client shall verify the actual value of a sealed parcel received without the witness of CSC representatives.

(3) Upon CSC written request, the client may verify the actual value of a sealed parcel in the presence of CSC AD’s authorised representatives.

V. VERIFYING BALANCES AND LOADING ATM CASSETTES Art. 30. (1) A client bank shall request ATM cassettes of banknotes following the procedure

of requesting sealed parcels and shall receive them after providing the required funds on its settlement account with BNB or after providing the required own funds by denomination structure to the respective CSC territorial branch.

(2) The bank shall permanently mark in advance each ATM cassette in a way so as to indicate its owner and the denomination of banknotes to be loaded in it.

(3) CSC shall use only new and fit banknotes authenticated as per the requirements of BNB Ordinance No 18 for loading ATM cassettes. Where the banknotes are new, they shall be counted on second counting machines before they are loaded into ATM cassettes.

(4) Each cassette shall be loaded with two thousand pieces of notes of the denomination indicated on it.

(5) The ATM cassettes shall be loaded with banknotes by a commission appointed with order of the head of the CSC territorial branch.

(6) The CSC commission shall place the banknotes of the different denominations in the cassettes designated for the purpose. A label with the signatures of the commission members, the date of loading and the binding tapes from the bundles of banknotes used for loading shall be placed in the cassette. The loaded cassettes shall be sealed by the commission with one-time-use seals. One-time-use seals shall also be placed on the cassettes of “rejected banknotes”. CSC shall keep account and registry of used seals.

(7) Where through the fault of CSC employees ATM cassettes designated for a specified denomination of banknotes are loaded with banknotes of different denomination and this results in a loss to the client bank, CSC shall be liable and shall reimburse the identified loss within three business days from the date of establishing it. The reimbursement of the loss shall be carried out based on a protocol of findings.

(8) CSC shall deliver the ATM cassettes of banknotes to an authorised representative of the client bank at a loading dock. The authorized representative shall also be handed over the sealed cassettes of “rejected banknotes”.

Art. 31. (1) The ATM cassettes of banknotes returned after loading, the cassettes of rejected banknotes and the banknotes found as discarded on belts, etc. /previously placed in a transparent PVC tamper-evident bag with adhesive tape, specified ID number of the ATM device and addressee label on the bag/ shall be handed over by an authorized representative of the client bank to the CSC loading dock employees.

(2) Each cassette shall be marked by the bearer with the ID number of the ATM device from which it was returned.

(3) If, upon receipt of cassettes the loading dock commission finds out that the cassettes are unsealed, they shall be re-sealed by the client’s representative with one-time-use seals supplied by a CSC employee. The act shall be recorded in the deposit document. Where a deficit is found out when verifying the actual value, it shall be for the account of the client bank’s authorized representative.

Art. 32. (1) The ATM cassettes of banknotes received at CSC shall be opened and examined by a commission assigned by order of the head of the CSC territorial branch.

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(2) The commission shall examine the integrity of the ATM cassettes, the integrity of seals, and shall check the numbers on the seals against those in the registry entered during preparation of the cassettes.

(3) The commission shall make an inventory list of the notes found in each cassette based on the following requisites: name of the client bank, ID number of the ATM device, from which the cassettes were returned; number, denomination and total amount of the banknotes found in the cassette (individually for each cassette), as well as the cash brought in in a transparent PVC tamper-evident bag with an adhesive tape to the relevant ATM.

(4) Detailed inventory list by cassettes and ATM devices shall be sent by CSC to the client bank – owner of the cassettes and the ATM devices – for reconciliation on the accounts of the respective ATM devices. The inventory list, in addition to the data under para 3, may also include data on the reference number of the transaction with BNB, if this has been executed, and personal ID number of the client’s representative.

(5) CSC shall deposit with BNB the processed banknotes from the cassettes of the relevant client bank for transfer of their value to its settlement account with BNB.

(6) Where CSC processes ATM cassettes with the client bank’s own money, CSC shall transmit information under para 3 pursuant to the procedure and in the manner described in para 4.

(7) Banknotes from different ATMs shall not be mixed until the final reconciliation of the amounts for a particular ATM. For each ATM, banknote counting shall be carried out individually, and only then processing of the next ATM cassettes may begin.

VІ. ADJUSTING DIFFERENCES BETWEEN VERIFIED ACTUAL AND DECLARED VALUE OF BANKNOTES

AND CIRCULATION COINS

Art. 33. (1) For all differences found in a sealed parcel a statement of differences shall be drawn up containing the following requisites at the minimum:

1. Name and addressee and the branch which is object of the statement; 2. Date of issue of the statement; 3. Issuer of the statement – the CSC branch, which has examined the content of

the sealed parcel; 4. Data on actual and declared value of the sealed parcel in numbers,

denominations, value per denomination and total value; 5. Data on the character (shortage or overage) and total amount of the

difference for the sealed parcel as a whole; 6. Description of differences by character and value, as well as the types of

materials evidencing the differences enclosed with the statement; 7. The names and signatures of the authorized persons who attested the

difference (a commission of at least 2 members). (2) The statement of difference shall be drawn up in duplicate. (3) The existence and character of the difference shall be documented by the authorised

persons, who have established the difference, and shall be attested by their signatures on the statement drawn up by them.

(4) For each difference, the statement of difference shall be supported by all materials evidencing its existence and character, such as packaging (labels from packages), bundling tapes, statements of differences, protocols of seizure of banknotes/notes suspected of being counterfeit, deposit receipts for received packages of damaged banknotes for subsequent exchange, etc.

Art. 34. (1) Where CSC establishes difference in a sealed parcel of BGN banknotes, deposited by a client bank branch, a copy of the statement of difference, along with the supporting materials, shall be sent to the client bank branch or head office. The second copy of the statement of difference, along with copies of the difference evidencing materials, shall be kept with CSC.

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(2) Where CSC establishes difference in a sealed parcel of a bank’s client, the first copy shall be sent to the bank’s head office. It shall be enclosed with the evidence materials. The second copy of the statement of difference, along with copies of the evidence materials, shall be kept with CSC.

(3) Where CSC establishes difference in a sealed parcel of BGN banknotes, deposited by a client other than bank, which is processed as client’s "own funds“, the statement of difference, along with the difference supporting materials, shall be sent to the depositor client. The second copy of the statement of difference with copies of the evidence materials shall be kept with CSC.

(4) Where CSC establishes difference in a sealed parcel of foreign currency banknotes, deposited by a CSC’s client, the statement of difference shall be drawn up in duplicate – one for the depositor and one for CSC. The statement shall be handed over to the client along with the enclosed materials. Where the client is a bank branch, the documents shall be sent to the bank branch or head office. Damaged foreign currency notes shall be returned to the client in a sealed parcel of PVC package with duly inscribed address label. The number on the PVC package shall be added to the dispatch sheet and together with the statement of difference shall be handed over to the client’s representative.

(5) Where CSC establishes differences in sealed parcels of amounts higher than agreed, the depositor client and/or the depositor’s head office shall be immediately notified.

Art. 35. (1) Where a client finds a shortage in a CSC sealed parcel, he shall: 1. undertake steps to preserve the conditions and circumstances, under which

the difference was established; 2. notify CSC immediately, and not make payments with the banknotes and

circulation coins from the seal parcel until CSC gives its consent to this; 3. CSC shall assess the grounds for acknowledging the difference in his parcel,

while the proof of the difference shall be responsibility of the client who must provide full assistance and present documents and information in evidence of the difference.

(2) Where CSC acknowledges a shortage, CSC shall reimburse it to the client within 3 days by transferring the amount to an account specified by the client.

Art. 36. Where an overage is found, the client shall transfer, within 3 days, the amount to an account specified by CSC.

Art. 37. (1) Where an expert’s appraisal by the competent services at the BNB, pursuant to Ordinance No 18, finds out that retained Bulgarian banknotes and coins, suspected of being counterfeit, are genuine, based on the technical appraisal report the BNB shall ex-officio transfer the equivalence of the Bulgarian banknotes/coins in favour of the CSC client and shall notify CSC thereof.

(2) Where an expert’s appraisal finds out foreign currency banknotes, suspected of being counterfeit and retained pursuant to BNB Ordinance No 18, to be genuine, the BNB shall return the banknotes, in compliance with Ordinance No 18, to CSC, and CSC shall return them to the depositor client.

(3) Where an expert’s appraisal of value, determined pursuant to the procedure of subsequent exchange under Ordinance No 18, finds out that Bulgarian banknotes have value, then based on the protocol of subsequent exchange the BNB shall transfer in favour of the client that value in accordance with the evaluation in BGN.

(4) The fees collected by BNB in relation with expert’s appraisal under the foregoing paragraphs, shall be borne by the client.

Art. 38. Differences established after examination of the content of returned ATM cassettes shall be analysed by both parties to find out the reasons thereof. The client bank shall check for unexecuted transactions. CSC shall review the video surveillance and shall control the work of the commission in checking the content of returned cassettes.

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VІІ. ACCEPTANCE/DELIVERY OF SEALED PARCELS FOR/FROM SAFEKEEPING WITHOUT PROCESSING

Art. 39. (1) CSC shall accept sealed parcels for safekeeping without processing via:

а) 24-hour vault; б) at a loading dock by a CSC acceptance commission.

(2) The sealed parcel accepted for safekeeping shall be prepared pursuant to art. 17 and Appendix No 1 “Standard for Packaging and Preparation of Sealed Parcels”, and marked “for safekeeping”.

(3) Acceptance/delivery of sealed parcels for and from safekeeping shall be carried out at CSC by a commission assigned with a written order of the head of the CSC territorial branch.

(4) Upon acceptance/delivery of a sealed parcel, the CSC commission shall verify the number on the PVC tamper-evident bag against the bag number in the document accompanying the sealed parcel, or the number on the seal and imprint thereof provided to the client.

(5) The client’s representative delivering the sealed parcels must enter in the document, accompanying the sealed parcel for safekeeping, the number of the PVC tamper-evident bag, or the number of the seal.

(6) The client shall submit to the CSC territorial branch, where his sealed parcels are being deposited for safekeeping, two copies of imprints of the seals, which are going to be used on the sealed parcels, and a list of the numbers on these seals.

(7) Upon acceptance/receipt of a sealed parcel for safekeeping, an electronic “Sealed Parcel Registry” shall be filled in as per art . 1, item 13.

(8) The CSC commission may refuse to accept a sealed parcel at a loading dock in the event of a compromised integrity of the package, missing label, torn, illegible, or smudged label, or suspected tampering.

(9) Upon establishing, at a 24-hour vault, of a sealed parcel of compromised integrity, torn, missing or incorrectly filled in address label, a CSC commission shall draw up a protocol of findings and shall seal the parcel in a new package as appropriate for its protection. The head of the CSC territorial branch shall forthwith notify the client, who must send his authorised representative with instructions for further actions. Where necessary, the head of the territorial branch shall assign a commission, which, in the presence of the client’s representative, shall check the content of the sealed parcel of compromised integrity. The content of the sealed parcel shall be entered into a protocol of findings, which shall be signed by the client’s representative and the commission. Next, the sealed parcel shall be sealed and returned to the client.

(10) In the event of systematic failure to comply with the requirements for preparation of sealed parcels deposited for safekeeping at CSC, the Company shall be entitled to terminate acceptance of the sealed parcels at a 7-day advance notice.

Art. 40. (1) CSC shall deliver at a loading dock the sealed parcels, deposited for safekeeping, to the client’s representative.

(2) CSC shall deliver the sealed parcels from safekeeping to an authorised representative of the client at a loading dock following the necessary check procedures.

(3) The client’s agent may refuse to accept a sealed parcel in the event of compromised integrity of the package, torn or missing label, or suspected tampering.

(4) Upon receipt of the sealed parcels deposited for safekeeping, the client’s representative must check the integrity of the sealed parcel, the condition of the label, and other parameters before signing a dispatch sheet.

VІІІ. IT SUPPORT OF CSC SERVICES Art. 41. The services rendered by the Company shall be applied in the full range of the

related business processes through the IT system supporting the CSC core operations. Art. 42. CSC AD’s IT system shall:

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be based on integrated IT infrastructure and shall ensure the operations of clients with BNB;

provide secured transactions on clients’ balances and related data transmission;

service, as a single technological platform, synchronised information along the full cycle of cash balances movement from client to vault and from vault to client;

ensure conditions for tracking related responsibilities;

ensure timely crediting of a client’s account held with the bank/s or satisfy a client’s cash needs.

Art. 43. As an IT operator, CSC shall maintain:

an interface built and developed by the Company following BNB requirements for relatedness;

an interface built on client initiative in line with a uniform solution for relatedness, for which the Company creates conditions, provides requirements and develops an electronic exchange standard.

ІХ. PAYMENT FOR SERVICES DONE Art. 44. Clients shall pay fees for CSC services based on their actual volumes over a given

period of time, not longer than a calendar month, at prices as per the Tariff of Fees, which the Company applies in its operations. Fees shall be paid by clients based on an invoice received with an analytical information sheet attached to it. Failure to pay an issued invoice shall constitute grounds for claiming damages, starting a procedure for termination of the contract, or undertaking of other legal actions.

Art. 45. (1). CSC AD shall also collect fees from clients pursuant to these General Terms and Conditions upon:

1. Acceptance and fulfilment of requests after the deadlines in art. 7 2. Change of request submitted as per art.art.6 and 7 3. Withdrawal of request submitted as per art.art.6 and 7 4. Failure on part of a client to appear after he has submitted a request pursuant

to art. 7. (2) The fees under the foregoing article shall also include the costs CSC incurs for sealed

parcel packaging. Art. 46. (1) For services rendered a uniform Tariff of Fees shall be applied to all clients on

the territory of the country. (2) Changes in the operative Tariff of Fees shall be approved by the CSC Board of Directors

and shall become effective 30 days following the date of its publication on the Company’s website.

Х. SETTLEMENT OF RELATIONS IN THE EVENT OF DAMAGES Art. 47. (1) The value of banknotes and coins owned by clients and left for processing or

safekeeping with CSC, shall be insured by CSC. Reimbursement of the client with the value of the banknotes and coins, delivered to CSC, in case of perishing, damaging, destruction or taking away as a result of crime, fire, calamity or other insurance events shall be made based on the insurance policy.

(2) The reimbursement of the value of banknotes and coins delivered to CSC by a client shall be effected via a transfer to the client’s account within one business day from the date of completion of the procedure for proving to the insurer the grounds and size of the amount owed and the transfer of the amounts by insurer to a CSC account.

Art. 48. CSC shall not owe the client reimbursement of the value of perished, damaged, destructed or taken away banknotes and coins where the damages incurred are a direct and

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immediate consequence of the actions or inactions of the client or the person authorised by him, emanating from his failure to perform his obligations hereunder or under contracts concluded as per art. 2, paras 3 and 4.

Art. 49. In the events where the damage incurred is as a result of crime, the client – owner of the money, object of the crime, shall undertake any necessary action to inform the competent bodies and assist them in investigating the consequences of the crime, notwithstanding repairing of the damage pursuant to this section.

ХІ. GENERAL TERMINOLOGY

Art. 50. For the purpose of these General Terms and Conditions, the terms used herein

shall have the following meanings: Client – any legal or natural person using the Company’s services; Sealed Parcel (SP) – a package or a group of packages containing Bulgarian or foreign currency banknotes and/or coins, ATM cassettes, sealed or closed up in a way so as to ensure against uncontrolled access to their content, supported by a deposit/withdrawal, acceptance/delivery document. ATM – a device for: withdrawal of cash; payment for services; transfer of payments between accounts; statements of transactions and other payment or non-payment transactions. ATM monitoring and management – a service offered by the Company, which includes one or several of the following activities:

Monitoring of ATMs (monitoring of balances and condition of the devices);

CSC initiated requests for loading ATMs following specified parameters as agreed with the owner bank;

Preparation (feeding in, sealing) and delivery of ATM cassettes;

Loading and operator’s maintenance of ATMs (joint service with a CIT company);

Technical support of АTMs (joint service with a CIT company);

Acceptance and examination of the content of ATM cassettes returned from loading.

Servicing of cash flows of clients – legal or natural persons – on accounts with banks – a service for clients other than banks

The client, apart from being a CSC client, is also a client to a number of banks. In accordance with arrangement with individual banks, the client also gives instructions to CSC to direct his cash flows to his accounts held with banks. Declared value on a package – the value of the content of one package of banknotes or coins inscribed on the address label of the package Declared value on a sealed parcel – the total amount of the declared value of all packages in a sealed parcel Loading dock – a specialised area for acceptance and delivery of sealed parcels of banknotes and coins, which does not permit any direct physical contact between the person who accepts and the one who delivers a sealed parcel.

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Appendix No 1

S T A N D A R D

FOR PACKAGING AND PREPARARTION OF SEALED PARCELS

In compliance with art.17 of the General Terms and Conditions of Servicing CSC AD clients with banknotes and coins at declared value

І. Standard packaging 1. Only standard types of packaging of banknotes and coins shall be eligible for acceptance at

CSC. 2. Standard types of packaging shall be as follows:

A PVC bag/tamper-evident bag, double-stitched, with or without a handle, and with a coloured adhesive tape.

A bag of thick textile material, inside-stitched, where such packaging has been agreed in a Contract between CSC and the client.

The packages under art. 17, para 2 of these General Terms and Conditions for Banknotes and Circulation Coins must carry a weight of no less than 15 kg and be resistant to tears along the stitches, surface or the areas of the security adhesive tape, or the sewing area.

3. CSC AD shall not accept or deliver banknotes and circulation coins in packages other than standard ones.

4. Each sealed parcel shall be prepared and sealed in a standard type of package /packages/ in conformity with the following requirements:

The PVC bag/ tamper-evident bag must bear an address label and must be closed by means of an adhesive security protection tape;

The bag of textile material shall be fastened by sewing a textile or synthetic cord at the loose upper end (mouth) of the package; The ends of the cord (textile or synthetic) shall be pulled aside until the upper end of the package shrinks, then the cord shall be twined and tightened in the sewing area and tied in a knot. The loose ends of the cord (hanging from the knot) shall be made to run through the holes of the label front to back and tied in a knot. The ends of the cord shall be made to run through the openings of the lead seal and tied in a knot, and the seal shall be pressed with the seal pliers. The cord must be resistant to loading-unloading and transportation damages.

The textile bag may have key locking devices or a seal option. A key to the bags may only be kept at the CSC territorial branches. The bags must be resistant to loading-unloading and transportation damages. The locking mechanisms must be reliable and resistant to unlocking with keys other than the keys of CSC employees. Used seals shall be registered following the CSC internal procedure.

5. The content of each package shall be described by the person (persons) preparing the package on a label containing the following requisites:

addressee – name of addressee and his branch;

type of content – banknotes, coins, others.

currency type - BGN, EUR, USD, GBP, SFR, etc;

declared content – number (pieces) of banknotes/coins by denomination, total value in figures and in words;

sender – name of the client in whose name the package is prepared;

number of the sealed parcel;

number of the package;

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date of packaging;

signature of the person /persons/ who have done the packaging;

the label of a sealed parcel accepted for safekeeping without processing need not specify the declared value; however it must be marked “for safekeeping”

6. The label on the PVC packaging must be factory-printed on it against a secured white background. The label on the textile package must be printed on a thick unglazed cardboard having two openings at one end, which is attached additionally to it. The front side of the label must indicate the requisites in point 5.

7. The writing on the label must be complete, clear and legible, with no crossing outs, thickenings, deletions, additions or corrections, and made with an erasure-resistant medium.

8. Only ATM cassettes that meet the following requirements shall qualify for acceptance at CSC:

standard types of ATM cassettes of different models depending on the ATM certification model;

the cassette must be permanently marked with the logo of the owner bank and the required banknote denomination to be loaded in it;

the cassettes must bear identification labels of the owner bank indicating the denomination;

the cassettes must bear a single-use seals with an identification number;

each returned cassette must be inscribed with the ID number of the ATM device from which it is returned.

9. Only packages of single denominations shall qualify for acceptance at CSC. ІI. Requirements for preparation of sealed parcels of Bulgarian banknotes and circulation

coins by banks and CIT companies 1. For Bulgarian banknotes

Sealed parcels prepared by a bank or a CIT company must be in packages of 100 to 10 000 pieces of Bulgarian banknotes, arranged in bundles of a single denomination each. The package may contain bundles of different denominations;

Each bundle must hold 100 pieces of Bulgarian notes of a single denomination, arranged in one direction and wrapped in a bundling tape. The bundling tape of each bundle must feature the following requisites: the organisational unit in whose name the bundle has been prepared; date of preparation and personal identification of the person who has prepared the bundle, such as signature, stamp or personal ID number. Where the bundle is controlled by a second employee, the sign of his personal identification must contain a clearly indicated sequential number;

Bundles may be prepared in packages of up to 10 bundles of the same denomination, wrapped in a thermo-shrinkable foil, vacuum package or tied crosswise by textile or synthetic cord, paper or polyethylene tape (bundling tape). The package must hold only bundles prepared and controlled by the same person/s;

A package of banknotes shall not weigh more than 15 kg. 2. For Bulgarian circulation coins

Sealed parcels prepared by a bank or a CIT company must be in packages of 50 to 1 000 Bulgarian circulation coins, arranged in a PVC tamper-evident bag/roll of a single denomination each. The package may contain PVC tamper-evident bags/rolls of different denominations;

Each PVC tamper-evident bag/roll must contain 50 or 100 Bulgarian circulation coins. The PVC tamper-evident bag/roll must be marked /labelled/ with information about the denomination and the number of packaged coins, date of preparation of the PVC tamper-evident bag/roll and a signature, stamp or personal ID number of the person who prepared the package;

A package of circulation coins shall not weigh more than 10 kg.

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IІІ. Requirements for preparation of mixed sealed parcels of Bulgarian banknotes and

circulation coins 1. A mixed sealed parcel contains packages of Bulgarian banknotes and/or circulation coins,

which are not separated per denomination. 2. Where a mixed sealed parcel contains banknotes and/or circulation coins from different

tellers /financially liable persons/ of the client, these have to be sorted appropriately in separate transparent PVC tamper-evident bags, paper bags, tied with elastic band or bundling tape, or separated in any other way, which does not allow them to mix.

3. A mixed package shall not weigh more than 15 kg. ІV. Requirements for preparation of mixed sealed parcels which have passed interim

processing 1. A mixed sealed parcel, which has passed interim processing by a client, must conform to

the following requirements:

One package must contain different denominations of Bulgarian banknotes, oriented in one direction, separated per denomination, arranged in bundles of 100 pieces each, except for the discarded banknotes, which must be placed in a separate bundle;

Coins must be packaged in a PVC tamper-evident bag/roll of 50 or 100 coins of one denomination, except for the discarded coins, which must be placed in a separate PVC tamper-evident bag;

The sealed parcel must be prepared at a client level /large site of a client/, and not at a teller level;

Each sealed parcel must be accompanied by a deposit slip and must contain the turnover of only one site of the client. It is not allowable to place in one cash-in-transit bag balances from different deposit slips.

2. A package of a mixed sealed parcel, which has passed interim processing by a client, shall not weigh more than 15 kg.

V. Requirements for preparation of a sealed parcel of foreign currency banknotes and coins

1. A sealed parcel of foreign currency banknotes and/or coins must contain a package/packages of balances sorted by denomination and must comply with the following requirements:

One package may contain different denominations of banknotes, oriented in one direction and separated per denomination;

Coins must be separated by denomination in a way which precludes their mixing.

2. Where a sealed parcel contains banknotes and/or coins from different tellers /financially liable persons/ of the client, the balances must be sorted appropriately in separate transparent PVC tamper-evident bags, paper bags tied with elastic band or bundling tape, or in any other way, which does not allow them to mix.

VІ. Requirements for preparation of a sealed parcel for safekeeping without processing 1. A package of a sealed parcel intended for safekeeping without processing must be

prepared as per the contract between CSC and the client and must bear a filled in address label as per section І, point 5 of this Standard.

2. A package of a sealed parcel for safekeeping without processing shall not weigh more than 15 kg.

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Appendix No 2

PROTOCOL OF FINDINGS

on refusal to accept/deliver a sealed parcel/ATM cassette

Today, .........................................................../day and year/, at .............................. /time/

at …………………..…..............................................................................................................

name of branch

I, ...............................................................................................................................................

Full name and title

in my capacity of: use Х to mark relevant field

□ CSC employee/employees in charge of accepting sealed parcels of banknotes and coins, and

ATM cassettes

□ CSC employee/employees in charge of delivering sealed parcels of banknotes and coins, and

ATM cassettes

□ client’s representative responsible for acceptance of sealed parcels of banknotes and coins, and

ATM cassettes

Refuse to □ receive from □ deliver to

..................................................................................................................................................

..................................................................................................................................................

Full name of the client’s representative

..................................................................................................................................................

Name of client and branch

Sealed parcel No ..................................... with Ref. No ................................................................

On the following grounds: ..................................................................................................................................................

..................................................................................................................................................

..................................................................................................................................................

Detailed description of the reasons for refusal

CSC EMPLOYEE/ EMPLOYEES: CLIENT’S REPRESENTATIVE:

1. ................... ...................

2. ................... Signed

Signed