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In force as of 16 January 2017 With amendments dated 17 July 2012; 16 May 2013; 12 December 2013; 6 December 2016

RIGENSIS BANK AS GENERAL BUSINESS CONDITIONS

Riga, 2016

RIGENSIS BANK AS Reg. No. 40103429440 Teatra iela 3, Riga, LV - 1050, Latvia Tel.: (+371) 675 555 51 / Fax: (+371) 673 333 03 e-mail: [email protected] / www.rigensisbank.com

mailto:[email protected]

2 In force as of 16 January 2017 With amendments dated 17 July 2012; 16 May 2013; 12 December 2013; 6 December 2016

Contents

А. GENERAL ....................................................................................................................................... 3

1. Terms and Definitions ............................................................................................................... 3

2. Application of the Conditions ................................................................................................... 4

3. Establishing the Business Relationship ..................................................................................... 5

4. Identification of the Customer, its Representative or Authorised Person ............................... 5

5. Fees ........................................................................................................................................... 7

6. Procedure of Termination of the Agreement and/or Business Relationship ........................... 8

7. Rights and Obligations of the Parties ........................................................................................ 9

8. Confidentiality .........................................................................................................................10

9. Processing of Data ..................................................................................................................11

10. Procedure for Amending the Conditions and the Price List ...................................................12

11. Exchange of information between the Parties .......................................................................12

12. Responsibility ..........................................................................................................................13

13. Applicable Laws and Regulations and Procedure of Dispute Settlement ...............................14

14. Inheritance ..............................................................................................................................14

15. Miscellaneous .........................................................................................................................15

B. SPECIAL ........................................................................................................................................ 16

1. CURRENT ACCOUNT REGULATIONS .............................................................................................16

2. REMOTE ACCOUNT MANAGEMENT REGULATIONS ....................................................................20

3. PAYMENT SERVICES REGULATIONS .............................................................................................27

4. CURRENCY EXCHANGE REGULATIONS .........................................................................................35

5. TERM DEPOSITS REGULATIONS ...................................................................................................38

6. FINANCIAL INSTRUMENT SERVICES REGULATIONS .....................................................................42

7. PAYMENT CARDS REGULATIONS ..................................................................................................47


А. GENERAL

1. Terms and Definitions

1.1. Terms and definitions used in the Conditions:

Account - Current Account, Term Deposit Account, Card Account or any other account opened with the Bank for accounting of the Customer’s deposits;

Account Statement - a document prepared by the Bank on paper or in electronic form reflecting the flow of funds in the Current Account within a particular period of time, with the balance of the Current Account in the beginning and the end of the reference period;

Agreement - any agreement reached between the Parties with regard to a Service including the use of the Remote Account Management System, which consists of the Customer’s application or an agreement reached between the Parties with regard to provision of the Service, special provisions of the Service (if any), and with regard to which the Conditions and the Price List apply;

Application - any written document of the Customer addressed to the Bank for the receipt or changing of the Service;

Bank - Rigensis Bank AS, uniform registration number 40103429440, registered address at Teātra iela 3, Rīga, LV-1050;

Banking Day - a day (office hours), when the Bank is open for servicing Customers, i.e., any day, except for public holidays and days of rest established in the Republic of Latvia;

BO, the beneficial owner, means a private individual related to the Customer:

a) who owns or directly or indirectly controls at least 25 per cent of share capital or the total amount of voting shares of a corporate Customer or who controls the activity of a corporate Customer in any other way;

b) who directly or indirectly has the property right to, or who directly or indirectly controls at least 25 per cent, of the Customer’s legal entity other than an economic operator. A person or a group of persons for whose benefit a foundation has been established is deemed the BO of the foundation. The respective political party, partnership or cooperative society is deemed the BO of the relevant political party, partnership and cooperative society;

c) for whose benefit or in whose interests the Business Relationship is being established; or

d) for whose benefit or in whose interests an individual Transaction is being carried out without establishing a Business Relationship;

Business Relationship - relationship between the Parties while at least one Account is open and active with the Bank;

Conditions - General Business Conditions of the Bank as well as any following amendments and additions thereto;

Consumer - a private individual who receives or requests the provision of a Service for the purposes not related to business or professional activities of such entity;

Currency Exchange - purchase and/or sale of non-cash currency performed by the Bank or the Customer in exchange of another currency in accordance with the currency exchange rate set by the Bank;

Current Account - multi-currency call deposit account, opened with the Bank on the name of the Customer;

Customer – a private individual or a legal entity having Business Relationship with the Bank or to whom the Bank provides financial services;


Digipass - means of authentication established by the Bank which generates the information required for identification of the Customer / its representative - authorisation codes which substitute authentic signature and seal of the Customer / its representative on the documents submitted to the Bank;

Fee - payment to the Bank for provision of a Service;

Financial Instruments (FI) - financial instruments within the meaning of Financial Instrument Market Law of the Republic of Latvia;

Internet Bank - the main Remote Account Management System, which is accessed by the Customer via Internet;

Non-resident - a person not meeting the criteria of a Resident in accordance with laws and regulations of the Republic of Latvia;

Order - any document submitted to the Bank for execution, including the Payment Order;

Payment Order - a Customer’s order to the Bank to execute a Payment;

Payment – a totality of Customer’s activities aimed at transfer of funds from the Customer’s Account to accounts of Third Parties or among the Customer’s own Accounts in accordance with the details of the Payment Order, or a totality of Third Parties’ activities aimed at transferring funds to the Customer’s Account;

Parties - the Customer and the Bank jointly;

Price List - list of Fees effective at the time of provision of Services of the Bank and published by the Bank on its Website;

Resident - a person who is a resident in accordance with laws and regulations of the Republic of Latvia;

Remote Account Management - means of remote communication and conclusion of Transactions between the Customer and the Bank, as agreed between the Parties pursuant to a separate agreement, and available to the Customer by the means of Digipass;

Service - financial service, which is provided by the Bank to the Customer, or the provision whereof is requested by the Customer from the Bank;

Supervisory Authority – the Financial and Capital Market Commission (Kungu iela 1, Rīga, Latvia, LV-1050);

Third Party - any person who is neither the Customer nor the Bank;

Transaction - any operation registered in an Account with funds or financial instruments;

Website - www.rigensisbank.com.

1.2. The Conditions are divided into chapters and titles are assigned thereto for convenience and are not to be used for interpreting the Conditions.

1.3. Terms in the singular form are construed to include the plural and vice versa, unless otherwise expressly provided herein.

2. Application of the Conditions

2.1. The Conditions govern the relationship between the Customer and the Bank and are applied as of the moment of establishing Business Relationship between the Bank and the Customer.

2.2. The Conditions apply to all Agreements concluded between the Parties unless the Parties have agreed otherwise. If case of discrepancies between the Conditions and provisions of the Agreement, the Parties must refer to the conditions of the Agreement.

2.3. Upon establishing Business Relationship, conclusion of further Agreements with the Bank and use of Services the Customer must get acquainted with the current version of the Conditions and express its consent thereto.

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2.4. As of the moment of conclusion of the Agreement, the Application, the Agreement, the Conditions and Price Lists become an integral part of the Agreement, unless the Parties have agreed otherwise.

3. Establishing the Business Relationship

3.1. Prior to establishing the Business Relationship, the Bank requests from the Customer information and documents characterizing the Customer, the Customer’s operation or business, information on persons related to the Customer, including BO, the information, the provision which is prescribed by applicable laws and regulations, as well as other information necessary to the Bank. The list of documents necessary for establishing the Business Relationship with the Bank is available at the premises of the Bank and on the Bank’s Website.

3.2. When establishing the Business Relationship, the Customer represents the following:

3.2.1 The Customer (also the Customer’s representative(-s), if the Customer is a legal entity) has the rights and powers to establish Business Relationship with the Bank, to conclude Agreements and to give Orders to the Bank, including to sign documents to be submitted to the Bank and to undertake other activities related to the receipt of the Service;

3.2.2 Receipt of the Service or conclusion of a Transaction does not violate laws and regulations of the Republic of Latvia and the European Union or those of the place of location of the persons involved in the Transaction or the place of execution of the Transaction;

3.2.3 The private Customer, who is a BO, acts and receives Services in his own interests, unless the Customer has submitted information to the Bank with regard to another BO;

3.2.4 The corporate Customer acts and receives Services in the interests of the BO stated by it;

3.2.5 All the information provided to the Bank by the Customer and all the documents and notifications provided to the Bank are credible and valid;

3.2.6 The Customer’s funds in the accounts with the Bank are not proceeds of crime, the Customer does not perform the laundering of proceeds of crime, i.e. concealment, deception of the origin of the assets obtained as proceeds of crime or transformed into other assets, as well as the Customer does not finance terrorism or activities facilitating terrorism;

3.2.7 The Customer must inform the Bank immediately of changes to the aforementioned information. Until the receipt of information from the Customer with regard to changes, the Bank deems the information provided earlier as valid, correct and up-to-date, while the Customer is fully liable for any possible consequences.

3.3. The Bank refrains from establishing the Business Relationship if the Customer, within the term stipulated in the notification of the Bank, fails to provide the Bank with the requested information.

3.4. The Bank does not establish the Business Relationship with the Customer and does not carry out transactions with it until completion of identification of the Customer under the procedure established by laws and regulations and the present Conditions.

3.5. The Bank may decline the establishment of Business Relationship with the Customer without stating the reason.

4. Identification of the Customer, its Representative or Authorised Person

4.1. The Bank identifies the Customer in accordance with laws and regulations of the Republic of Latvia and the European Union and the procedure set forth by the Bank.


4.2. The Bank may at any time request, and the Customer in its turn must, upon the first request of the Bank provide the Bank with identification documents issued in form satisfactory to the Bank.

4.3. Only the Customer, its authorised representative or authorised person or persons set forth by laws and regulations of the Republic of Latvia may operate the Accounts or receive any information on the Customer, the Accounts or Transactions of the Customer within the Bank, provided that documents certifying the rights of representation or authorisation, executed in accordance with the requirements of the Bank, have been submitted to the Bank and that prior identification of the respective person has been carried out.

4.4. The Bank identifies a private individual in person by personal identity document which is valid at the place of performance of identification, by verifying entries in the identification document or by requesting additional documents certifying the particular private individual’s right to reside in the country where the identification is carried out.

4.5. The Customer submits to the Bank his/her specimen signature or, if the Customer is a legal entity, specimen signature of the Customer’s representative. In the course of provision of Services, the Bank visually, without using any special equipment or devices, compares signatures of the Customer or its representative on the document submitted to the Bank to the specimen signature submitted to the Bank.

4.6. If the Customer has submitted to the Bank a seal imprint specimen, the Bank in the course of providing the Services compares the impression of the seal on the document submitted to the Bank to the specimen impression of the seal submitted to the Bank; however, the Bank may disregard the colour of the impression of the seal.

4.7. When verifying the correspondence of the signature and impression of the seal of the Customer or its representative with the specimens the Bank has received, the Bank is liable for acting in bad faith only. In any other case the Customer agrees that the Bank may rely on the visual conformity of the signature of the Customer or its representative on the documents submitted to the Bank with the specimen signature of the Customer or its representative submitted to the Bank, and the Customer must bear all possible risks of consequences of such conditions.

4.8. The Customer may authorise a Third Party to receive Services or perform other activities in the Bank. Such authorisation must be made in writing in presence of the Bank’s employee or certified by a notary and legalised if so requested by the Bank. The Bank has no obligation to accept the submitted power of attorney or execute any operations based on the power of attorney submitted to the Bank, if the Bank doubts the correspondence of the activities of the authorised person to the interests or will of the Customer, the extent of powers or validity of the power of attorney.

4.9. The Customer agrees that it is bound by any operations performed by the Customer’s representative or authorised persons carried out within the framework of the Business Relationship until the Bank receives a written notification from the Customer on changing the Customer’s representative or revocation (limitation) of powers assigned to the person authorised by the Customer. The Bank is not liable for any loss of the Customer if such has occurred as a result of revocation by the Customer of the powers of its representative without duly notifying the Bank thereof in writing.

4.10. The Bank verifies the authorisation of the Customer’s representatives according to the documents submitted to the Bank. If the submitted documents meet the requirements of the Bank and undoubtedly specify the validity of authorisation of the Customer’s representative, the Bank has no obligation to further verify the validity of authorisation by any additional means. When verifying the authenticity of the submitted documents certifying the validity of authorisation of the Customer’s representative, the Bank is liable for gross negligence only. If the person who signed the documents on behalf of the Customer was not authorised to represent the Customer at the time of signing thereof, such a person is personally liable for any


obligations deriving from such document, and if the Bank had no grounds to question the powers of representation, the Customer is liable for the operations performed by the said person.

4.11. If the powers of representation of the Customer’s representative (including those of the administrator or a liquidator of the Customer) derive from laws and regulations, the Bank must be provided with a document drawn up in accordance with the Bank’s requirements, which attests the rights of representation (such as a copy of the court order on appointing the administrator or an extract from the official companies register).

4.12. The Customer or its representative may in cases determined by the Bank submit Orders to the Bank or receive Services by means of Remote Account Management Systems, the procedure of using whereof is set forth in the Conditions and the relevant Service agreements.

4.13. The Customer acknowledges that a Digipass code generated in accordance with the requirements of the Bank is equal to an original signature and seal of the Customer and/or its representative.

4.14. If the password of the Customer’s Digipass device becomes available to a Third Party, the Customer is liable for any consequences until the moment the Customer submits a request to the Bank to block the Digipass device in accordance with the procedure determined by the Bank.

4.15. The Customer must ensure that the Bank is always provided with documents, which in accordance with the Bank’s requirements certify the authorisation of the Customer’s representatives to act on behalf of the Customer as well as the identity of the Customer and the representatives of the Customer. If the Customer does not provide such documents to the Bank, the Bank may immediately decline the execution of Transactions completely or in part. The Customer is fully liable for the consequences if the Bank relies on documents provided earlier while the Customer has failed to provide the current documents.

4.16. In the cases and procedure set forth by laws and regulations of the Republic of Latvia and the internal regulatory documents of the Bank, the Bank may perform remote identification of the Customer. If identified remotely, the Customer must provide the Bank with certified identification- and other documents as appropriate in accordance with the requirements of the Bank.

5. Fees

5.1. The Services provided by the Bank to the Customer are chargeable services; the amounts of Fees are set forth in the Price List or in an Agreement concluded between the Parties (if fees are agreed individually). The general Price Lists are available in the premises of the Bank and on the Bank’s Website. The Customer may access the Price List and other means with the consent of the Bank.

5.2. The Fees for the Services not included in the Price List are determined upon agreement between the Parties. The Bank notifies the Customer of the amount of the Fee for one particular Transaction, which is applicable until expiry of the offer of the relevant Service.

5.3. If the Parties have not agreed on the Fee of the particular Service in advance, the payment whereof has not been provided in Price List at the time of provision of such Service, which was necessary for execution of the Customer’s Order, the Bank may determine an appropriate and fair fee.

5.4. The Fee is due before the Service is received, unless the Bank has set forth other procedure of payment. The Bank may write off in an acceptance-free manner from any Account of the Customer the amount of money necessary to pay the Fee. If the Customer’s account does not contain sufficient amount of money to pay the Fee in the currency of the Fee, the Bank may write off the necessary amount in another currency in accordance with the currency exchange rate determined by the Bank and applicable at the time of writing off the Payment. If the


Customer has not paid a Fee to the Bank for the Services, which have been received, the Bank may discontinue any further provision of Services to the Customer without prior notice.

5.5. If the Bank, in accordance with the Agreement concluded between the Parties or a separate agreement of the Customer, uses services of a Third Party for the purposes of providing Services to the Customer or performing other obligations in accordance with agreements concluded with the Customer, the Customer must cover all the Bank’s expenses related therewith. The Customer agrees that the Bank may write off in an acceptance-free manner from an Account of the Customer the amount of money necessary for covering such expenses. Following the receipt of a written request from the Customer, the Bank must provide documents to the Customer certifying the expenses.

5.6. If the Fees are subject to tax, duties or similar payments, the Bank may withhold such payments from the Customer by increasing the amounts payable by the Customer to the Bank.

5.7. If there is not enough funds in the Customer’s Account at the time when the payment of the Fee is due, the Bank may write off the amount it has requested as soon as the Customer’s Account balance is sufficient for payment of the relevant Fee. In such case the Bank may write off the amount due in accordance with the Price List applicable at the time of writing off the amount due. If the Customer’s Account is credited with funds in the currency other than the currency of the Fee, the Bank may write off the necessary amount in other currency in accordance with the currency exchange rate determined by the Bank and applicable at the time of writing off the amount.

6. Procedure of Termination of the Agreement and/or Business Relationship

6.1. The Parties may terminate the Agreement unilaterally by ten (10) days prior notice of its intent to the other Party in accordance with the procedure established by the Bank, unless the applicable laws and regulations of the conditions of the Agreement provide otherwise.

6.2. If the Customer has unsettled liabilities against the Bank, the Business Relationship is terminated as of the day the Customer fulfils all its liabilities against the Bank. Until the Customer’s obligations are completely fulfilled, the Business Relationship is suspended and during such a period the Bank does not provide new Services to the Customer, unless it is necessary for the fulfilment of the current obligations of the Customer.

6.3. The Bank may terminate the Agreement unilaterally without prior notice and discontinue the provision of a particular Service, if:

6.3.1. the Customer has violated the Conditions or if any of the Customer’s representations prove to be false;

6.3.2. the Customer refuses to provide information or has provided the Bank with false or incomplete information on itself, its BO, its or its BO’s business, professional or personal activities, financial situation and origin of funds credited to the Account;

6.3.3. the Bank suspects that operations on behalf of the Customer are performed by a person which has not been identified or does not have due authorisation;

6.3.4. the Customer allows legally punishable, unfair or unethical action, or the Bank reasonably considers further cooperation with the Customer to be damaging the Bank’s reputation;

6.3.5. he Bank suspects that the Customer is involved in money laundering or terrorist financing and that the Transactions are related to other illegal activities;

6.3.6. the procedure of insolvency, winding-up or bankruptcy of the Customer has been initiated, or the Customer’s property has become subject to recovery by Third Parties or has been arrested;

6.3.7. in other cases provided by the Agreements or laws and regulations.


6.4. The Bank may unilaterally and without prior notice close the Customer’s Account, if the Customer has not performed Transactions in it within a period of six (6) months.

6.5. Unless the Agreement or the Conditions do not provide otherwise, the Agreement is deemed concluded for an indefinite term.

7. Rights and Obligations of the Parties

7.1. The Customer immediately notifies the Bank of its inability to fulfil even a single obligation it has undertaken towards of the Bank and of detection of an error in the information, representations or documents previously provided to the Bank.

7.2. The Customer must provide the Bank with all the requested information and to submit all the documents requested by the Bank and certifying certify the origin of funds which are in the Customer’s Accounts or that have been received as a result of Transactions, the structure of the Customer’s legal entity, the Customer’s business activity, its business partners and its BO, personal activity and financial situation of the Customer and its BO, the BO’s identity, as well as other information and documents which are necessary to the Bank for the fulfilment of requirements with regard to prevention of money laundering and terrorist financing.

7.3. The Customer must immediately notify the Bank of any changes to the information and circumstances of importance for continuing the Business Relationship or receiving a particular Service, including but not limited to: change of name, family name, identity number, other identity data, legal capacity, name, address (of a legal entity) and other contact information or changes to the list of authorised persons or to the scope of their authority, initiation of reorganisation, merger, de-merger, declaration of insolvency or initiation of winding-up procedure, as well as important changes to the financial situation. The obligation of notification remains in force also if where the changes have been published in the mass media.

7.4. The Bank may decline the provision of Services to the Customer as well as terminate the Business Relationship with the Customer, if the Customer does not provide the Bank with any information and/or documents requested by the Bank.

7.5. The Bank may, without separate consent of the Customer, use the balance of any Account to cover the liabilities of the Customer towards the Bank. If the funds in the Account are of currency other than that of the Customer’s liabilities, the Bank carries out currency exchange in accordance with the exchange rate determined by the Bank for that day and withholds the currency exchange Service Fee.

7.6. The Bank may use the right of retention to protect its claims towards the Customer, and the Customer agrees with the Bank’s right of retention with regard to all the Customer’s funds in the Accounts.

7.7. The Bank may assign its claim rights towards the Customer to Third Parties without a separate consent of the Customer, unless the Agreement provides otherwise. The Customer may assign its claim rights towards the Bank to Third Parties with a written consent of the Bank only.

7.8. In order to ascertain that requirements of prevention of money laundering and terrorist financing are met, the Bank may request from the Customer information and documents on the Customer, its BO, activities of the Customer and the origin of its funds, explanations on performed Transactions, the purpose of the requested Services, etc.

7.9. All Customer’s funds and all Financial Instruments which are or will be in the Customer’s Account with the Bank may be used by the Bank as the financial collateral for satisfaction of the Customer’s current or future liabilities towards the Bank. In all cases when the Bank, in accordance with the Conditions or the Agreements, has claim rights towards the Customer, the Bank has prior rights to satisfy its claims on the Customer’s funds and Financial Instruments in the Accounts. The Bank is entitled, without prior notice, to write off the Account an amount necessary to satisfy the claims of the Bank, as well as, where necessary and without the


Customer’s consent, the Bank may perform currency exchange in accordance to the exchange rate determined by the Bank for the relevant day.

7.10. The Bank may sell the Customer’s Financial Instruments pledged with the Bank in the amount necessary to cover the Bank’s claims towards the Customer; however, the Bank may sell also a larger amount of Financial Instruments if the agreements concluded by the Bank or the current practice of the market of Financial Instruments determines a minimum amount of Financial Instruments to be sold/purchased, which exceeds the amount that is necessary to the Bank. The Bank transfers to the Customer’s Account the funds remained after the sale of the Financial Instruments, upon covering the expenses related to sale thereof, and upon withholding the amount, which is necessary to cover the claims of the Bank towards the Customer.

7.11. The Customer must immediately notify the Bank in writing of any circumstances, which may threaten the safety of the funds in the Customer’s Accounts, as well as of possible fraud attempted by Third Parties.

7.12. The Customer follows all the instructions of the Bank and takes all the safety measures set forth by the Bank.

7.13. The Customer undertakes to acquaint all the authorised representatives of the Customer and its BO with the present Conditions and to abstain from establishing the Business Relationship with the Bank if the said persons fail to agree with the Conditions. In case of violation of this provision, the Customer undertakes full liability towards the Bank and undertakes to reimburse any possible loss incurred by the Bank as a result of claims of the said persons.

7.14. The Customer bears all risks and expenses related to shipping of valuables (including Digipass).

8. Confidentiality

8.1. The Bank acknowledges that all the information related to the Customer, Business Relationship between the Customer and the Bank, Transactions performed in its Accounts and the relationship of the Customer with the Third Parties which the Bank became aware of in the framework of the Business Relationship, is confidential and may not be disclosed to Third Parties without the Customer’s consent, except for information which:

8.1.1. is publicly available;

8.1.2. is received from the Credit Register of the Bank of Latvia or from other registers;

8.1.3. is provided for the purpose of collection of debts, if the Customer has indebtedness towards the Bank;

8.1.4. is provided to the assignee with regard to the assigned claim right or to Third Parties with regard to conclusion of an agreement on participation or other type of attraction of financial resources;

8.1.5. is necessary to financial institutions and other partners of the Bank involved in the execution of the Service requested by the Customer; is provided to brokers, which have an open Nominal Account with the Bank where the Financial Instruments owned by the Customer are held, for further provision of such information to the issuers of the relevant Financial Instruments, their representatives and national supervisory bodies, provided that such a requirement is set forth by applicable laws and regulations, for the purpose of application of benefits with regard to income from Financial Instruments as provided by international agreements, as well as for confirmation of the country of residence of the Customer upon request of a broker;

8.1.6. is provided to companies within the same group with the Bank;

8.1.7. may serve as evidence of commission of a criminal offence and is necessary for investigation and establishing of the facts in accordance with the requirements of the applicable laws and regulations and the supervisory bodies;


8.1.8. is provided to the supervisory bodies and to the Bank’s auditor;

8.1.9. is provided to competent bodies of the Republic of Latvia, the European Union or other countries;

8.1.10. is provided to organisers of the regulated market (exchanges), to tax administration bodies in accordance with the requirements of laws and regulations and/or the rules of the organisers of the regulated market (exchanges);

8.1.11. is provided to personal data operators and other business partners or intermediary companies providing services to the Bank or which the Bank cooperates with in some other way with a view to execute the Customer’s Orders, operations or functions of the Bank or to meet the requirements provided by the applicable laws and regulations.

8.2. Banking secrecy applies to confidential information and it is undisclosable. Confidential information may be disclosed only in accordance with laws and regulations of the Republic of Latvia and the Conditions.

9. Processing of Data

9.1. When establishing Business Relationship with the Bank, the Customer agrees that the Bank may process all the personal data of the Customer, the Customer’s representative and its BO in accordance with the applicable laws and regulations of the Republic of Latvia.

9.2. The Bank may request and receive personal data and other information concerning the Customer, its representatives and BO from the Invalid Document Register, Population Register, Credit Register and other Third Parties as well as to process such data.

9.3. The Bank may process personal data of the Customer, its representatives and BO as well as other Third Parties related to the Customer.

9.4. In cases of disclosure of information on the Customer as provided herein, the personal data of private individuals possessed by the Bank may be disclosed to such Third Parties providing services to the Bank or representing the Bank’s interests, to which the Bank assigns the performance of any obligations provided by the Conditions, or with which the Bank cooperates in another manner to ensure its operation and implementation of its functions. The persons who have been provided with personal data in cases of disclosure of information on the Customer as provided by this Paragraph may process all the personal data of the Customer, the Customer’s representative and Beneficiary, including sensitive data and identity numbers.

9.5. For the purposes of safety and quality control of the Services provided by the Bank, the Bank may without prior notice record telephone communication with the Customer/its representative or authorised person, store all mutual communication and unilaterally choose technical means for recording mutual communication, install video surveillance devices at the premises of the Bank, and record ongoing activities in the premises of the Bank, as well as process such information in accordance with the Bank’s regulations. The Bank may use the information obtained by such means with a view to prove the conclusion of an Agreement, arrangements between the Parties on the conditions of the Agreement or the Service, to use it as a proof for the protection of its interests in dispute settlement and in the court. The Bank is not obliged to store the records of mutual communication for the Customer’s needs.

9.6. The Bank is the controller of data processing; the purpose of processing the data is the Customer accounting, provision, offering and maintenance of services, as well as ensuring the operation and performance of the functions of the Bank. Processing of data must be carried out pursuant to applicable laws and regulations of the Republic of Latvia and the European Union.

9.7. Upon submission of a written application to the Bank, a private individual may get acquainted with his/her personal data to be processed by the Bank and may request supplementation or correction thereof in accordance with laws and regulations of the Republic of Latvia in the area of protection of personal data.


9.8. The Customer may receive data concerning itself/himself/herself from the Credit Register in accordance with the procedure set out in the Credit Register Regulations. Credit Register Regulations are available on the webpage of the Bank of Latvia at: www.bank.lv.

9.9. The Bank may offer Services to the Customer by post, telephone, fax, email and other means of communication. The Customer may decline the receipt of commercial advertisements by sending a written refusal to the Bank.

10. Procedure for Amending the Conditions and the Price List

10.1. The Bank draws up the Conditions and Price Lists and reserves the right to change their content unilaterally.

10.2. If the Customer is a Consumer and the Agreement between the Parties does not provide otherwise, the Bank notifies the Customer of changes to the Conditions and Price Lists in writing at least ten (10) days prior to the entry into force of the relevant changes, except for changes to the Conditions with regard to providing Payment services or Fees for Payments, which are notified by the Bank to the Customer in at least two (2) months prior to their entry into force. In addition to individual notification of changes to the Conditions or Price List, the Bank ensures availability of amendments in the premises of the Bank and on the Bank’s Website. The Parties agree that the Consumer has given its consent to the changes, unless by the day of entry into force thereof he/she has notified the Bank of his/her objections against the proposed changes. If the Customer does not agree to the proposed changes, the Customer may discontinue the use of the relevant Service or, if the Customer does not have any outstanding liabilities towards the Bank, terminate the Business Relationship by notifying the Bank thereof in writing. Prior to termination of the Business Relationship, the Customer must satisfy all the liabilities towards the Bank.

10.3. In any other case the Bank notifies the Customer of changes to the Conditions or the Price List in at least ten (10) days prior to entry into force of the changes by placing the information on changes both on the Bank’s Website, and making it available in the premises of the Bank.

10.4. The Bank may disregard the aforementioned notification term if the changes are in favour of the Customer.

10.5. Introduction of new Services of the Bank or determining a Fee for new Services of the Bank are supplementing the Conditions and/or Price List, and they must not be considered as aggravating the situation of the Customer; the Bank is not obliged to give prior notice to the Customer of introduction thereof, and such changes enter into force in the term determined by the Bank.

10.6. The Bank is not liable for the Customer’s loss and other additional expenses of the Customer, if the Customer has failed to get acquainted with the changes to the Conditions and/or Price List.

11. Exchange of information between the Parties

11.1. When concluding a Current Account Opening and Maintenance Agreement, the Customer chooses a language of communication with the Bank. The Bank draws up the notifications addressed to the Customer in the language stated in the Current Account Opening and Maintenance Agreement. The Bank may draw up a notification in another language if it is being drawn up in connection with a separate Agreement or a written document received by the Bank from the Customer which has been drawn up in another language.

11.2. The Bank accepts documents in Latvian, Russian and English language or in another language at discretion of the Bank. A document drawn up in another language must contain a notarised translation into Latvian, Russian or English language.

11.3. The Customer is responsible for the credibility, completeness and timeliness of submission of all the data and documents submitted to the Bank. The Bank may refuse acceptance of unclear, ambiguous, incorrect, illegible documents, including Customer’s Orders, requests, Applications.

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The Bank is not liable for execution of erroneous Orders, requests and other documents of the Customer.

11.4. When verifying the authenticity, credibility and validity of the documents or explanations thereof provided by the Customer, the Bank is liable for gross negligence only.

11.5. If the documents submitted by the Customer specify the amount in figures and words, and such amounts fail to match, the Bank deems that the correct amount is the amount stated in words. In the documents completed in Internet Bank in accordance with the forms prepared by the Bank, the basis is the amount stated in figures.

11.6. The Bank may request the Customer to confirm the Order, which has been submitted to the Bank by a person other than the Customer or its representative, in case if the Bank doubts the authenticity of the submitted Order. The Bank is entitled not to execute such an Order until the receipt of a Customer’s confirmation satisfactory to the Bank. In such case the Bank is not liable for the loss that the Customer has suffered due to the delay in execution of the Order.

11.7. The Bank sends all the notifications and documents related to the Services by post to the Customer’s legal address (for legal entities), or to the address of the Customer’s place of residence (for private individuals), or to another address of correspondence stated by the Customer. The Bank may send the documents related to the Services by the means of Internet Bank. At the choice of the Customer and at the expense of the Customer, the Bank may send the documents via courier services. The Bank is not liable for the loss or expenses of the Customer if the Customer has failed to notify the Bank of changes to the delivery address or has stated such address erroneously, imprecisely or incorrectly, as a result of which the Customer had not received the Bank’s notification or had received it with delay.

11.8. All notifications and documents sent by the Customer by post are deemed received by the Bank at the time of registration of the relevant notification or document in the Bank’s record management system, taking into account provisions of the Price List in respect of the time of receipt of particular documents. Notifications sent by the Customer by fax or electronic mail are deemed received by the Bank at the time when the Bank has confirmed the receipt thereof.

11.9. All the notifications or documents are deemed received by the Customer on the fifth (5th) working day following the submission of the relevant notification or document to the post office for sending thereof to the Customer in a registered mail or following the submission thereof to a courier mail company. The notifications and documents of the Bank placed in the Internet Bank are deemed received by the Customer on the day when the relevant notification has been placed in the Internet Bank and had become available to the Customer. Notifications and documents of the Bank sent to the Customer’s fax number or e-mail address known to the Bank are deemed received by the Customer on the day of sending the relevant document.

12. Responsibility

12.1. The Parties are liable for failure to perform or undue performance of the obligations and the loss caused to each other.

12.2. The Bank is liable only for direct loss of the Customer caused by it to the Customer as a result of intentional malicious failure to perform its obligations or as a result of gross negligence, but it does not reimburse for the Customer’s lost profit.

12.3. The Bank bears no responsibility for the activities of the Third Parties taking part in provision of the Service, including but not limited to correspondent banks and broker companies.

12.4. The Bank is not liable for loss caused by fluctuations of prices of financial instruments and other investment products, currency exchange rates, interest rates and financial indices, by the refusal of the issuers of financial instruments to fulfil their obligations, and by other risks related to the management of Customer’s funds.


12.5. The Bank is not liable for loss borne by the Customer if the Customer intentionally or due to negligence fails to provide the Bank with information stipulated in the Conditions or the Agreements, provides false, unreliable or incomplete information, as well as fails to notify of any changes to the information provided to the Bank earlier.

12.6. The Parties are not liable for failure to perform the obligations if their failure is caused by force majeure or other circumstances, which the Parties could neither foresee nor influence or prevent.

12.7. If for the purposes of concluding Transactions the communication means are used which have been agreed with the Customer, the Bank is not liable for the loss of the Customer that has occurred due to disturbances in operation of the post, fax, electronic or other means of communication, as well as technical equipment enabling the receipt of the relevant Services.

12.8. If any Order must be executed within a particular deadline, the Customer must state that deadline for each individual case. The execution deadline must be specified in writing. The Bank is not liable for its failure to respect the deadline stated by the Customer if the execution within the requested deadline is impossible in accordance with the current banking practice or the applicable laws and regulations.

12.9. If the Customer has not specified the execution deadline in the Transaction document or in the Order, the Bank is not liable for loss caused to the Customer as a result of delay in execution of the relevant operation or Order.

12.10. The Customer is responsible for observance of laws and regulations governing the receipt of the relevant Services and operation of the Customer itself (including but not limited to tax regulations). The Bank is not obliged to ascertain whether the Customer observes these requirements and is not liable for the Customer’s violations.

13. Applicable Laws and Regulations and Procedure of Dispute Settlement

13.1. The relationship between the Parties is governed by laws and regulations of the Republic of Latvia and the European Union, unless the Parties have agreed in writing on the application of laws and regulations of another country.

13.2. Any disputes and disagreements, which may arise between the Bank and the Customer, must be resolved in negotiations. Customers’ complaints and claims are reviewed in accordance with the procedure set forth by the Bank for the review of Customers’ complaints and claims, which provides that the Consumer may file a complaint on the provided Payment services and the execution of Payments to the ombudsman of the Association of Commercial Banks of Latvia in accordance with the procedure provided by laws and regulations of the Republic of Latvia. Filing a complaint to the ombudsman is not a precondition for the Customer to be able to refer the dispute to the court.

13.3. If the agreement is not reached, the dispute is settled by the court of the Republic of Latvia of the relevant jurisdiction in accordance with the procedure provided by laws and regulations of the Republic of Latvia, or by another court or by a court of arbitration if provided by the Agreement concluded between the Parties.

14. Inheritance

14.1. In case of death of a private Customer the person who applies to the Bank as the Customer’s heir must provide the Bank with documents certifying that person’s right of inheritance as well as present a personal identity document. The Bank must identify such person in line with the procedure provided for identification of Customers.

14.2. In case of death of a Customer or Customer’s BO the Bank may, for the purposes of protection of the Customer’s property, refrain from execution of the Customer’s Orders until the documents certifying the new BO are presented.


14.3. Prior to disbursement of funds and transfer of Financial Instruments included in the estate to the Customer’s successors, the Bank may satisfy from such funds of the Customer the liabilities of the Customer towards the Bank, which are due to the Bank from the Customer, where necessary, by selling Financial Instruments and/or exchanging the Customer’s funds into the necessary currency in accordance with the Bank’s rate applicable on the particular date.

15. Miscellaneous

15.1. If any provision hereof becomes inoperable, it does not affect the validity of the remaining provisions of the Conditions.

15.2. The Conditions are available in the premises and the Bank’s Website.

15.3. In case of discrepancies between the texts of the Conditions in Latvian language and any other language, the text of the Conditions in Latvian language prevails.


B. SPECIAL

1. CURRENT ACCOUNT REGULATIONS

1. Terms and definitions used in the Current Account Regulations:

Payment Instrument - a personalised device or a set of procedures agreed between the Parties and used by the Customer for the purpose of initiation of a Payment, including the Remote Account Management System, payment cards etc.

2. General Provisions

2.1. The Bank opens a multi-currency Current Account for the Customer pursuant to a Current Account Opening and Maintenance Agreement concluded between the Parties. The Customer may open several Current Accounts with the Bank having concluded with the Bank a separate Current Account Opening and Maintenance Agreement in respect of each such Account.

2.2. Current Account Opening and Maintenance Agreement is concluded for an indefinite term.

2.3. The Current Account Regulations take effect as of the moment of conclusion of Current Account Opening and Maintenance Agreement and remain effective until closure of the Current Account.

2.4. The execution of Transactions in the Current Account as offered by the Bank is ensured for the Customer upon receipt and acceptance of all the documents necessary for the Bank, as well as upon conclusion of the Current Account Opening and Maintenance Agreement, unless certain circumstances are identified which, in accordance with the Current Account Regulations, may be the grounds for blocking or closing of a Current Account.

2.5. The holder of a Current Account opened with the Bank is deemed the private individual or the legal entity, which has concluded a Current Account Opening and Maintenance Agreement with the Bank.

2.6. Funds in the Current Account are the Customer’s deposit withdrawable on demand, and the Customer has free discretionary control over such funds.

2.7. The Bank does not pay interest to the Customer for the balance of funds on the Current Account, unless the Parties have agreed otherwise.

3. Account Statement

3.1. Complete information on the Transactions performed in the Current Account is provided in the Account Statement prepared by the Bank.

3.2. In the Current Account Opening and Maintenance Agreement the Customer specifies the preferred manner of receipt of the Account Statement.

3.3. The Customer pays the Fee for the Account Statement in accordance with the Price List.

3.4. The Customer follows the reflection of Transactions in the Account Statement and at least once a month verifies its correspondence to the actually performed Transactions. The Customer agrees that the Current Account Statement is deemed a sufficient proof of Transactions.

3.5. The Customer must follows the records in the Account and immediately, but not later than thirty (30) days following the completion of the relevant Transaction or following the day the Transaction was supposed to be performed, or within the term stipulated by another Paragraph hereof, provided that another term has been set by the Conditions for notifying of mismatch between particular records, notifies the Bank of mismatch between records in the Current Account and the actually performed Transactions or of Transactions which have not been confirmed (authorised) by the Customer. If the Customer fails to notify the Bank within the term stated above of mismatch of the records in the Current Account, it is deemed that the Customer has confirmed their trueness.


3.6. Upon first request of the Bank, the Customer provides it with all the documented evidence and information certifying the mismatch between the Transactions reflected on the Current Account and the actually concluded or unconfirmed (unauthorised) Transactions of the Customer.

3.7. If the Current Account is closed and the Business Relationship with the Bank is terminated, the Customer may receive Account Statements and other information with regard to the accounts only upon repeated identification in accordance with the requirements of the Bank, including the repeated confirmation of the authorisation of the Customer’s representative to receive the requested information.

4. Rights and Obligations of the Parties

4.1. The Customer, who is a Consumer, may request to reimburse loss if the Customer, provided that he/she, immediately after he/she became aware of the unauthorised Transaction, but not later than within thirteen (13) months following the performance of the relevant Transaction, has notified thereof the Bank in accordance with the procedure of submission of Applications laid out herein. Other Customers may receive a reimbursement of loss if the Customer, immediately after they became aware of the unauthorised Transaction but not later than within ninety (90) days following the performance of the relevant Transaction, has notified thereof the Bank in accordance with the procedure of submission of Applications laid out herein. The Bank reimburses the loss by returning the amount of Transaction or by restoring the situation in the Customer’s account to what it was prior to conclusion of the unauthorised Transaction.

4.2. The Bank does not reimburse the loss in the amount of up to 150 (one hundred and fifty) euro or an equivalent amount in other currency to a Customer who is a Consumer, and to other Customers - the damage in the amount of up to 10,000 (ten thousand) euro or an equivalent amount in other currency, if the loss is caused by unauthorised Payments, provided that the Customer did not ensure safe storage of the Payment Instrument and the information related thereto.

4.3. The Bank does not reimburse the loss to the Customer if the Customer acted unlawfully or intentionally as well as if the Customer did not follow the safety measures determined by the Bank or did not follow the procedure of use and storage of the Payment Instrument or the means of identification and authorisation issued to the Customer, or in cases where the Customer could have or should have foreseen the loss but did not take any measures to ensure the safety of the funds on the Current Account.

4.4. The Bank may write off in an acceptance-free manner from the Current Account of the Customer the funds or financial instruments transferred to such account due to the Bank’s error.

4.5. The Customer has access to the funds credited to the Current Account, and the Customer, unless it has concluded with the Bank the relevant Agreement, may not carry out Transactions and take any action as a result of which the balance of the Customer’s funds on the Current Account may be exceeded. The Customer must pay the Bank the interest and/or penalties in accordance with the Bank’s Price List for the overdrawn amount of the funds on the Current Account, as well as without delay transfer to the Current Account the amount of money sufficient to cover the unauthorised debit of the Current Account.

5. Blocking the Current Account

5.1. The Bank may refrain from conclusion of Transactions with the funds on the Customer’s Current Account (in the discretion of the Bank to stop one or several, or all the debit Transactions from the Current Account, as well as all the credit Transactions to the Current Account), without being held liable for that in the following cases:

5.1.1. upon occurrence of circumstances provided by the Conditions under which the Bank may refrain from conclusion of Transactions or terminate Business Relationship;


5.1.2. upon expiry of the validity term of the personal identification document of the Customer/ representative of the Customer or the expiry of the term of authorization of the Customer’s representative;

5.1.3. upon occurrence of circumstances provided by the Conditions under which the Bank is entitled not to accept or execute any order from the Customer;

5.1.4. if such measures are in compliance with laws and regulations of the Republic of Latvia.

5.2. The Bank resumes the Transactions on the Current Account following the elimination of circumstances, which caused the blocking of the Current Account.

6. Closing the Current Account

6.1. The Bank closes the Current Account within ten (10) Banking Days following the receipt of the Customer’s Application on closing the Current Account. The Bank is entitled not to close the Current Account if the Customer has any outstanding liabilities towards the Bank or if the Current Account has negative balance.

6.2. The Bank may close the Current Account upon its own initiative without explaining the reason of closing the Current Account to the Customer by sending a written notification ten (10) days in advance.

6.3. The Bank may close the Current Account without notifying the Customer in advance if the Customer, for more than six (6) months in a row has not performed any Transaction on the Current Account, the balance of the Current Account is equal to zero or is negative and the Current Account is not related to provision of other services by the Bank to the Customer. If the balance of the Current Account is negative, the Bank may collect such a debt from the Customer in the procedure provided by laws and regulations of the Republic of Latvia, these Conditions and other agreements concluded between the Bank and the Customer.

6.4. The Bank may unilaterally close all Current Accounts of the Customer in the Bank in case of termination of the current Business Relationship with the Customer.

6.5. The Customer must pay a Fee according to the Price List for closing the Current Account.

6.6. When closing the Current Account, the Bank transfers the balance of the funds to an account of the Customer stated in a written Order, having withheld the Fee calculated in accordance with the Price List for the transfer as well as other Fees payable by the Customer.

6.7. If the Customer does not submit an Order with indication of an account where funds from the Current Account should be transferred to, the Bank may return the money to the Customer’s account where the Customer’s funds were received from. The Customer is also entitled to withdraw the funds by the means of the Payment Card if its uses such a Service and does not have limits for such operations in accordance with laws and regulations or the internal regulatory documents.

6.8. Until the moment the Customer has submitted an Order to the Bank which meets the relevant requirements of the Bank, or the funds have been returned to the Customer’s account in accordance with the rights provided in the Conditions, the Current Account balance is kept by the Bank and no interest is accrued for the period of keeping.

6.9. If the Customer has outstanding liabilities towards the Bank, the Bank may withhold, in an acceptance-free manner, from the funds to be paid to the Customer, an amount which is necessary for a complete or partial performance of the Customer’s liabilities towards the Bank, as well as, where necessary, convert it into the necessary currency in accordance with the rate of the Bank applicable at the time of writing off thereof.

6.10. Following the closing of the Current Account, the Customer releases the Bank from any liabilities the Bank has undertaken in the course of execution of the Customer’s orders, and the Customer


must, before closing the Current Account, reimburse the Bank for any expenses and loss borne by it in the result of provision of Services, by providing, where necessary, the relevant collateral.

7. Temporary Current Account

7.1. The Parties may agree on opening of a temporary Current Account for a corporate Customer, which is established in the Republic of Latvia, for the purpose of payment of the equity capital.

7.2. The Bank may withhold a Fee from the amount of money credited to the temporary Current Account.

7.3. The Current Account becomes accessible to the Customer and is a Current Account in the meaning of the Conditions and the Conditions of the Current Account apply thereto, if the Bank is presented, within the determined term, with the documents confirming the registration of the Customer in the relevant register and other documents identifying the Customer and its representatives.

7.4. If the Customer’s company fails to be registered, the Bank transfers the funds credited to the temporary Current Account, having withheld the Fee due to the Bank from the amount of money to be transferred, to the Current Account of a person who performed the payment to the temporary Current Account or to an account of such person in another Bank.


2. REMOTE ACCOUNT MANAGEMENT REGULATIONS

1. Terms and Definitions used in the Remote Account Management Regulations:

Confirmation of Receipt of the Means of Authorisation and Identification (Confirmation) – confirmation, which is signed by the Holder of Digipass;

Holder of Digipass - a private individual who actually uses the Digipass - a Customer and its representative (for a corporate Customer);

Means of Authorisation – Digipass;

Means of Identification - User name and/or other information identifying the User;

Remote Account Management System – Internet Bank, fax, Telephone Bank, by means of which the Current Account is managed;

Request for Connection of the Issued Digipass to the Customer’s Current Account (Request) - an application from the user of Digipass to the Bank with a request to connect the Customer to the management of the Current Account by the means of the Remote Account Management System;

Telephone Bank - a telecommunications channel set up by the Bank, which may be used for communication, receipt of financial information or for the purposes of conclusion of Transactions;

Transaction Limits - a maximum amount set by the Customer, within which the User is permitted to carry out one Transaction or Transactions within a certain period of time, by the means of the Remote Account Management System; if the Customer has not set Transaction Limits, then the transactions are unlimited by default;

User - Holder of Digipass in the context of using Internet Bank, who has its own User Name and who uses Means of Authorisation;

User Name - identification number of the User in the Internet Bank.

2. General

2.1. The provisions on Remote Account Management apply if the Customer has ordered or already uses the Remote Account Management service of the Bank.

2.2. Following the adoption by the Bank of a decision to provide to the Customer the Remote Account Management services, the Bank issues to the private Customer or to the representative of the corporate Customer the Means of Identification and the Means of Authorisation (Digipass) which are necessary for receipt of the services.

2.3. In the course of providing the Remote Account Management services, the representation rights are applied in accordance with the documents identifying the Customer and its representative which have been presented to the Bank. If several persons may represent the Customer jointly only, then any document submitted to the Bank via Remote Account Management System must contain the codes of the Means of Authorisation of all such persons.

2.4. Connection of the Means of Authorisation to the Customer’s Current Account is carried out in accordance with the Request submitted by the User.

2.5. If a Current Account for a new Customer is opened with the Bank, and the authorised representative of such Customer at the same time is an authorised representative of another Customer, such a person may at his/her choice create a new User, and in such case such a person is issued a new Means of Identification and a new Means of Authorisation (Digipass), or he/she may use the Means of Identification and the Means of Authorisation received earlier and attached to the relevant User.


2.6. Digipass Holder at its own discretion connects to the Current Account of one or several Customers, whose authorised representative he/she is, by submitting the relevant Request to the Bank. The holder of Digipass may state in the Request the Transaction Limits as well as choose the Mode of connection with regard to each Customer, provided that such limits and modes comply with the scope of authorization of the relevant Holder of Digipass in accordance with the documents presented to the Bank. The Bank does not set the Limits and Modes if they exceed the scope of authorisation given to the Holder of Digipass by the relevant Customer.

2.7. The set Transaction Limits of the User in the Internet Bank does not apply to Payments which are performed between the Accounts of one Customer, except for transactions of Currency Exchange to which the limit of debit of one Transaction applies.

2.8. The Transaction Limits set for each User of the Customer and for each Remote Account Management System apply to each User and each system individually and they may not increased.

2.9. The Holder of Digipass may receive the Digipass personally from the Bank representative or to order the delivery of Digipass to an address stated in the Confirmation. The Holder of Digipass undertakes the risks related to sending the Means of Identification and the Means of Authorisation. For this purpose, the Bank may use the services of Third Parties but in such case the Holder of Digipass must confirm the means which are acceptable to the Bank for receipt of the Means of Identification and the Means of Authorisation, the Bank reserves the right to not activate the Means of Identification and/or the Means of Authorisation before they are received. The signature of the Holder of Digipass on the Confirmation which has not been signed by the Holder of Digipass in the presence of a Bank representative, must be certified by a notary and, if it is required by laws and regulations of the Republic of Latvia and the Bank, the document must be legalised or certified by an Apostille. The Bank is not liable for the loss of shipment, delay of delivery, other possible additional expenses of the Customer and/or the Third Parties who are related to the delivery of the shipment as well as other circumstances which are beyond control of the Bank.

2.10. The Bank may request from the Customer a separate confirmation for execution of the requested Transaction in the Current Account if the Transaction has been requested via Remote Account Management System and the Bank has doubts with regard to the authorisation of the Transaction by the Customer. The Bank may suspend the execution of the relevant Service or of a particular Transaction until the moment of receipt of the relevant conformation of the Customer which meets the Bank’s requirements, without being held responsible for the possible loss of the Customer caused by suspension of execution of a Transaction.

2.11. The Customer agrees that the Bank is entitled, without explaining the reasons, to decline the provision of the service of Remote Account Management to the Customer, as well as, during the provision of the service, to unilaterally set the limits on the management of the Current Account, the conclusion of Transactions via Remote Account Management System.

2.12. The key Remote Account Management System is the Internet Bank. Fax and Telephone Bank are auxiliary Systems of Remote Account Management.

2.13. The Bank is entitled, out of safety reasons, to block one or all the Systems of Remote Account Management, the Means of Identification and/or the Means of Authorisation in cases where the Bank has suspicions with regard to unauthorised use of the stated systems or means, or their use for fraudulent purposes, or upon occurrence of circumstances which may represent that the Customer is unable to fulfil its obligations towards the Bank. The Bank is not liable for the loss or additional expenses of the Customer which are related to the rights of the Bank provided in this Paragraph of the Conditions. The Customer must compensate to the Bank the expenses related to blocking the Remote Account Management System, the Means of Identifications and/or Authorisation as provided for in this Paragraph of the Conditions.


2.14. The Bank unblocks the Systems of Remote Account Management, the Means of Identification and/or the Means of Authorisation or replaces them with new ones as soon as the grounds for blocking thereof cease to exist.

2.15. The Bank identifies the Customer/its representative in the Internet Bank by the code of the Means of Identification and the Means of Authorisation issued to it, by the means of another Remote Account Management System - by the name and family name of the Customer or the name of the Customer and the name and family name of the Customer’s representative, by the number of Digipass device and by the code of the Means of Authorisation.

2.16. The Bank may allow at its discretion the use of the Means of Authorisation for identification of the Customer when concluding transactions not related to management of the Account. In such a situation the Customer assumes all the possible risks related to signing the documents by the means of the code of Digipass.

2.17. The Customer agrees that any document submitted to the Bank by the means of the Remote Account Management System, provided it contains a code of the Means of Authorisation of the user, generated in accordance with the requirements of the Bank, is considered as a document which is authorised by the Customer, and the information contained in such a document is considered as confirmed by the Customer and it is binding to it.

3. Group of Customers

3.1. By the means of the Remote Account Management System it is possible to manage the Current Accounts of several Customers. Customers, whose Current Accounts are managed by one Holder of Digipass by using one and the same Means of Authorisation, is deemed a Group of Customers. The following provisions apply to the Group of Customers:

3.1.1. for the purpose of remote management of Current Accounts of the whole Group of Customers to which the relevant User is connected, one Means of Identification and one Means of Authorisation must be used;

3.1.2. The Fee for the User’s operations via Means of Authorisation is withheld from the Holder of Digipass if he/she has opened the relevant Current Account. If the Holder of the Digipass does not have his/her own Current Account with the Bank, the Bank may withhold the Fee from any Customer to who the relevant User is linked to (for instance, the expenses of blocking the Means of Authorisation or of issuing a new Means of Authorisation).

4. Modes of Connection in the Internet Bank

4.1. Internet Bank is available in following modes:

4.1.1. full mode - the User can prepare and receive information on all the Customer’s accounts with the Bank, Account statements and reports on Customer’s transactions carried out in the Current Account of the Customer, to submit and sign Applications and Orders to the Bank in respect of the Transactions which have been carried out or have to be carried out via Current Account to which the relevant User was linked;

4.1.2. limited mode - the User can prepare and receive information on all the Customer’s Accounts with the Bank, Account statements and reports on Customer’s transactions carried out in the Current Account of the Customer, to prepare draft Applications and Orders to be submitted to the Bank by using the Current Account to which the relevant User was linked;

4.1.3. information mode - the User may receive information on all the Customer’s Accounts with the Bank, including Account statements and reports on the Customer’s transactions carried out in the Current Account of the Customer.


4.2. The documents received in the Internet Bank are registered in the Records Management System of the Bank on the Banking day within the limits of the Banking day. Unless the Conditions or the Price List provide otherwise, the documents received on the Banking day before 16:00 Latvian time are accepted for execution on the day of receipt thereof, the documents received at another time are accepted for processing for the Banking day following the placing thereof in the Internet Bank.

5. Additional Systems of Remote Account Management

5.1. The User having access rights to Internet Bank in full mode at the discretion of the Customer may be connected to additional Remote Account Management Systems Fax: and/or Telephone Bank.

5.2. The User connected to Fax as an additional Remote Account Management System may submit and sign Applications and Orders to the Bank.

5.3. All the documents sent by Fax must be signed by a code generated by the Means of Authorisation. The Bank does not perform any action with a document which is received by Fax, if the form of such document fails to satisfy the Bank’s requirements, as well as the Bank may refrain from providing Remote Account Management services, if the Document does not contain the code generated by the Means of Authorisation or the entered code is wrong or imprecise, or the code is illegible.

5.4. The documents received by Fax are registered by the Bank in the documentation register of the Bank on the Banking day within the limits of the Banking day. Unless the Conditions or the Price List provide otherwise, the documents received on the Banking day before 16:00 Latvian time are accepted for execution on the day of receipt thereof, the documents received at another time are accepted for processing on the Banking day following the receipt thereof by the Bank.

5.5. The User, who is connected to an additional Remote Account Management System, Telephone Bank, may submit and sign in the Bank the Applications and Orders for currency exchange and to receive information on its Accounts.

5.6. The Customer agrees that the Bank may ask additional questions for identification of the Customer and/or its representative and to refrain from provision of Remote Account Management services if the questions asked by the Bank are not answered or the answers given are incorrect and/or the code generated the Means of Authorisation is not provided or is provided wrongly.

6. Rights and Responsibilities

6.1. The Customer must ensure the change of the initial password of the Means of Authorisation if such is supported by the device. The Customer is responsible for safe storage and inaccessibility of the Means of Identification and the Means of Authorisation to Third Parties.

6.2. The Bank may set the frequency of the following changes of the password.

6.3. The Customer must get acquainted with the Conditions of the Use of Remote Account Management System, the Means of Identification and the Means of Authorisation (User Instructions, User Manual) approved by the Bank. The documents referred to in this Paragraph are available on the Website of the Bank or in the premises of the Bank during the working hours of the Bank.

6.4. The Customer is responsible for all the actions taken by the User created in accordance with the Customer’s Request or for the management of the Current Account, if the activities have been carried out via Means of Authorisation and the powers of such User with regard to management of the Account and execution of other operations on behalf of the Customer have been confirmed by appropriate documents submitted to the Bank.


6.5. One Holder of the Digipass, upon receipt of multiple Means of Identification and Means of Authorisation and upon submission of the relevant Requests, may request connection of several Means of Identification and Means of Authorisation to one Account of the Customer, and the Customer is responsible for all the activities performed via any of such Means of Identification and Means of Authorisation.

6.6. If an error is detected in functioning of the Means of Authorisation, the Bank replaces the issued Means of Authorisation with a new one free of charge.

6.7. The Customer agrees and authorizes the Bank for the purposes of safety to perform, store and systematise the records of telephone conversations, including ensuring the registration of the fact of receipt of Orders.

6.8. The Bank may immediately block the access of the Holder of the Digipass to the Customer’s Account by way of blocking the Means of Authorisation or the Internet Bank of the Customer If case of expiry of the rights of the Holder of the Digipass to represent the interests of the Customer or in any other case where such a Service is contrary to laws and regulations of the Republic of Latvia and the Bank.

6.9. The Bank is entitled, at its own initiative, at any time terminate provision of the Remote Account Management services upon informing thereof the Holder of the Digipass.

6.10. The Bank sends the Digipass and the information on the use thereof at the risk and cost of the Customer.

7. Blocking the User and/or the Means of Authorisation

7.1. If the Means of Authorisation are lost or stolen, or the PIN Code of the Means of Authorisation or other confidential data of the Remote Account Management System have become known or may become known to Third Parties, the Customer must immediately notify thereof the Bank orally or in writing. The Bank, within the period of one (1) Banking Day following the receipt of notification, blocks the access of the relevant User to the Remote Account Management System.

7.2. If the Bank reasonably suspects that the User has lost control over the confidential information issued by the Bank, by the means of which the User can use the Remote Account Management services, as well as if the signs of forgery of a signature and/or a seal impression have been identified on the certificate of receipt of the Means of Identification and/or the Means of Authorisation for Remote Account Management, the Bank is entitled but not obliged to block the User’s right of access to the Remote Account Management services without being held responsible for it.

7.3. The User’s right of access to the Remote Account Management System is blocked automatically if, for connection to the Remote Account Management System, the parameters have been wrongly entered for five (5) times in a row in the field where it is supposed to enter the code generated by the Means of Authorisation and/or the User Name.

7.4. The Means of Authorisation and accordingly the right of access to the Remote Account Management services is automatically blocked if for five (5) times in a row the code generated by the Means of Authorisation has been entered or told erroneously.

7.5. The Means of Authorisation are blocked permanently if for five (5) times in a row the PIN Code of the Means of Authorisation has been entered in error or the User is trying to open the Means of Authorisation by itself or causes mechanical damage thereto (pours liquid on it, strikes it, etc.).

7.6. For the purpose of unblocking the User and/or the Means of Authorisation, the Holder of the Digipass must submit an application to the Bank of appropriate contents, upon the Bank’s request, during a personal visit to the Bank. If case of blocking the Means of Authorisation the Holder of the Digipass may submit to the Bank an application filled out in accordance with a


form determined by it, for issuing a new Means of Authorisation. In such case, the new Means of Authorisation are issued upon withholding the Fee in accordance with the Price List.

7.7. If case of permanent blocking of the Means of Authorisation, the Bank, following the receipt of the Customer’s application provided by the Conditions, performs the replacement of the Means of Authorisation having withheld the Fee in accordance with the Price List.

8. Exchange of information

8.1. The Customer is deemed received the information placed by the Bank in the Internet Bank from the moment of placing such information therein, and the Customer must ensure timely and regular introduction with the information placed by the Bank in the Internet Bank.

8.2. The Bank prepares Account Statements in accordance with the applicable laws and regulations of the Republic of Latvia and the Account Statement contains at least the following information: Account number, currency code, date of preparation, the date of beginning and end of the period of the Account Statement, the turnover of the Transactions performed in the Account, the Account balance in the beginning and end of the period of the Account Statement. The Account Statements available in the Internet Bank are stored in the Bank in an electronic form, and the Customer acknowledges that the Account Statement prepared by the Bank in an electronic form is deemed an authentic Account Statement prepared by the Bank.

9. Execution of Orders

9.1. The Bank is entitled not to execute the Customer’s Orders submitted via Remote Account Management services in the following cases:

9.1.1. if the Order has been filled out imprecisely, incompletely or it is inconsistent with the form determined by the Bank;

9.1.2. if the Bank does not provide the Service stated in the order;

9.1.3. if the Customer/its representative does not observe the Conditions and the obligations provided herein;

9.1.4. if the Bank has doubts with regard to the identity of the User, and the Bank has failed to contact the Holder of the Digipass in order to receive the confirmation of submission of the Order to the Bank;

9.1.5. if the Account contains insufficient funds for performance of the Transaction and payment of the Fee;

9.1.6. if the limits of the Remote Account Management System or those of the Transactions have been exceeded.

9.2. The Customer is liable for the accuracy and completeness of the Order submitted to the Bank.

9.3. The Customer must assume all the risk and responsibility for the damage caused:

9.3.1. in cases of erroneous or corrupted transfer of the Order or Application, including misunderstandings, errors or distortions caused by deficiencies or disturbances in the communications infrastructure to the extent it did not occur as a result of gross negligence of the Bank;

9.3.2. as a result of unlawful activities of the Third Parties until the moment of blocking the Remote Account Management services;

9.3.3. in cases of duplication of an Order or an Application;

9.3.4. where the Holder of the Digipass has passed the Means of Authorisation and/or the password to the Third Party and such Third Party has used the Remote Account Management services;


9.3.5. where the Customer/Holder of the Digipass has violated these Conditions on the Remote Account Management.


3. PAYMENT SERVICES REGULATIONS

1. Terms and definitions used in the Payment Services Regulations:

Account - an account with the Bank, opened in the name of the Customer where the Payment is received or where it is transferred from;

Beneficiary’s Bank – the Bank or another provider of Payment Services, which has received an order for crediting a Payment into its customer’s account;

Card Account - an Account to which a card is linked and which is debited and credited in accordance with Transactions performed by the Card User;

Correspondent Account - an account of the Payer’s Bank or of the Beneficiary’s Bank with the Correspondent Bank;

Correspondent Bank - a bank where the Bank of the Payer or the Bank of the Beneficiary has opened a correspondent account in a particular currency with a view to perform Payments in the relevant currency;

External Payment - a Payment where several credit institutions participate;

IBAN (International Bank Account Number) - Account number generated in accordance with international standards;

Intra-Bank Transfer - a Transfer where the Payer and the Beneficiary are the Bank’s customers;

Intermediary Bank - any bank involved in execution of the Payment, which is not a Bank nor the Payer’s Bank, nor the Beneficiary’s Bank;

Payer - initiator of the Payment Service who may be a Customer in cases where a Payment order is being submitted for the performance of a transfer in the amount of the Payment to a Third Party, or a Third Party, if it submits an order to the payer’s Bank for the performance of crediting a Payment into the Customer’s Account;

Payer’s Bank - a bank servicing the Payer to which the Payer submits a Payment Order for performance of a payment operation;

Payment Identifier - a combination of letters, digits or symbols in the Payment which is determined by the payer’s Bank and which is used by the beneficiary’s Bank to unequivocally identify the Payer or its Account where the Payment has been made from;

Payment Order - a Customer’s order to the Bank, executed in accordance with the Bank’s requirements, requesting the performance of a transfer of a Payment of a particular amount to its own account or an account of a Third Party in the Bank or in the Beneficiary’s Bank;

Payment Service - crediting of a Payment to the Customer’s Account and/or transferring of a Payment to a Third Party in accordance with the Payment Order and the movements of funds in the Account related to the execution thereof;

Value Date - the date of crediting the Payment into the Account or the date of writing off the amount of the Payment from the Account. The value dates are only the working days for the Bank and the currency.

2. General

2.1. The Bank executes only Payment Orders which have been prepared and submitted to the Bank in accordance with the Bank’s requirements and are executable. If the Payment Order lacks information, details, or its purpose is ambiguous, the Bank may request additional information or documents from the Customer and postpone the execution of the Payment Order until the necessary information or documents are received.


2.2. For the purpose of execution of External Payments, the Bank may use Correspondent Banks and Correspondent Accounts, as well as local and international payment and accounting systems.

2.3. These rules equally apply to Intra-Bank Transfers and to Internal Payments in national and foreign currency.

3. Preparing a Payment Order

3.1. The Customer must prepare the Payment order in the form established by the Bank.

3.2. It is necessary to provide the information on the Beneficiary which is complete to the maximum: Corporate Beneficiary (a legal entity) - IBAN / full account number, full name of the customer, its address (street address, city, country), Private beneficiary (a private individual) - IBAN / full account number, name, family name, date of birth, address (street address, city, country).

3.3. In the field “Purpose of payment”, in addition to the key information (number and date of the document which is the basis for performing the transfer) a detailed purpose of the transfer must be stated:

Type of settlement - prepayment, payment upon delivery, partial payment, final payment;

If case of kinship between the payer and the beneficiary, it is preferred to state it in the field “Purpose of payment”, as well as to provide detailed purpose of the payment;

If the transfer of funds is related to payment of interest according to a loan agreement - the principal amount and the interest rate according to the agreement;

If the transfer of funds is commercial - the product name is stated for which the payment is made (for instance, for the clothes and a detailed specification: dresses, coats, suits, etc.);

The goods with dual use need the maximum specification.

The purpose of the payment must be stated precisely, clearly and unambiguously. It should not contain general words, such as: loan, investments, contract, goods. The field “Purpose of payment” of payments except for transfers in Russian rubles, must be filled out in English only.

3.4. For the payment order in national and international currency (except for Russian rubles) solely Latin letters must be used. Otherwise, at the time of transferring the data, transliteration is applied, and in such case, the Bank is not liable for consequences of transliteration and consistency of information included in the Payment Order.

3.5. The Bank may decline the acceptance of a Payment Order for execution if the Payment order is not filled out in accordance with the form established by the Bank, or the form is not filled out completely, if the Payment order is not signed by the Customer or its representative or by all the representatives who may represent the Customer jointly, if the wording of the Payment Order contains crossed-out words, corrections or parts of text which are unclear due to another reason, as well as in cases where the Bank may refrain from provision of Payment Services.

3.6. If case of an external Payment, if for the purpose of execution of the Payment Order, in addition to the Beneficiary’s Bank, the participation of other Correspondent Banks is necessary, and the Customer has not stated the Correspondent Bank or has stated it erroneously, the Bank may state the Correspondent Bank/Correspondent Banks without agreeing on it with the Customer.

3.7. If the Customer has not stated the Correspondent Bank or has stated it erroneously of the Beneficiary’s Bank and the Payment was returned to the Bank, the amount of the Payment is credited back into the Customer’s account by withholding all the expenses and the Fees related to the execution of the Payment Order.


3.8. The Bank is not liable for the compliance of execution of the Payment Order by the Correspondent Bank or the Intermediary Bank of the Beneficiary’s Bank, or the Beneficiary’s Bank with the instructions of the Bank, including for arbitrary reduction of the amount of Payment when crediting it to the beneficiary of the Payment, if that has occurred due to reasons independent from the Bank or due to execution of instructions included in the Customer’s Payment order.

3.9. The Customer states the preferred type of Payment in the Payment Order. If the Customer has not stated the preferred type of Payment (standard, urgent or express), the Payment Order is executed as a standard Payment.

3.10. Regular Payments are executed in accordance with separate agreement with the Bank on regular Payments.

4. Execution of Payment Orders

4.1. The Bank accepts Payment Orders for execution in accordance with the Price List of the Bank - on Banking Days and at working hours of the Bank, the information on which is available on the Website of the Bank and in the premises of the Bank at working hours. The Payment Order submitted after working hours of the Bank or on the day which is not a Banking day, is deemed received on the day following the Banking Day.

4.2. If at the time of receipt of the Payment Order the Customer’s Account contains insufficient funds for execution of the Payment Order and for payment of the relevant Fee, the Bank may decline the execution of the Payment Order or suspend its execution until a sufficient amount of money is credited to the Account, but not longer than for ten (10) days.

4.3. If the Account stated in the Payment Order contains insufficient funds for execution thereof in the currency indicated in the Payment Order and/or in the currency of the Fee, the Bank is not obliged to execute the Customer’s Payment Order but may use the funds on the Customer’s Account available in another currency. If the Bank, for the purposes of execution of the Payment Order, uses funds available in another currency on any Account of the Customer, the Bank, prior to execution of the Payment Order and without separate Order from the Customer, performs exchange of currency into the currency of the Payment Order and/or the currency of the Fee in the amount which is necessary for execution of the Payment Order by applying the Bank’s currency exchange rate applicable at the time of exchange of currency and by withholding the Fee for the transaction of exchange of currency.

4.4. If the Customer has submitted several Payment Orders to the Bank in the total amount exceeding the amount of funds available on the relevant Account, the Bank may execute such Payment Orders in free sequence at the discretion of the Bank, unless the Customer has given a written request to the Bank to execute the Payment Orders in particular sequence.

4.5. If case of an External Payment the Bank passes the Payment Order to its Correspondent Bank for further execution on the day of execution of the Payment Order as stated in the Price List. The Bank cannot guarantee the receipt of the Payment on the Beneficiary’s bank account or on its Correspondent account on a particular time if the execution of the Payment involves one or several Correspondent Banks or Intermediary Banks.

4.6. The Bank is responsible for the execution of Payment Orders and crediting the received Payments into the Customer’s Account in accordance with laws and regulations of the Republic of Latvia.

5. Confirmation of a Payment Order

5.1. The Customer agrees that the Payment Order is deemed confirmed (authorised) by the Customer in the following cases:


5.1.1. if the Payment Order has been submitted to the Bank in printed form and signed in accordance with the samples of signatures and/or seal impression submitted to the Bank;

5.1.2. if the Payment Order has been submitted to the Bank via Internet Bank and authorised in accordance with the Means of Authorisation provided for Remote Account Management;

5.1.3. if the Payment Order has been sent to the Bank by fax and it contains a code generated by the Means of Authorisation of the Remote Account Management.

5.2. The Customer agrees that the confirmation of the Payment Order submitted to the Bank in the procedure provided for in the above Paragraph of the Conditions, is sufficient and indisputable, as well as that the confirmation of the Payment Order submitted to the Bank in such a procedure is deemed a confirmation of the contents and details of the Payment Order.

6. Rights and Obligations

6.1. For the purposes of safety, the Customer may set limits for Transactions to be carried out on the Current Account by submitting an Application to the Bank. The Customer may temporarily block the Current Account by prohibiting the performance of any Transaction.

6.2. The Bank may unilaterally choose the means of identification of the banks involved in execution of the Payment. When executing a Payment Order, the Bank, as a professional, executes the Payment Order without a separate consent of the Customer, by choosing the most rational way of execution. The Customer fully assumes all the risks related to the way of execution of the Payment if the Bank executes the Payment Order in accordance with the way of execution of the Payment indicated therein.

6.3. The Bank may reserve the right to change at its discretion the type of the Fee (OUR; SHA; BEN) stated in the Payment Order of the Customer depending on the currency of the Payment, the payment system used and the common practice of execution of payments in such currency and other features, such as, the practice of transfers applied in the relevant country.

6.4. The Bank is not obliged to verify the consistency of the account number stated in the Payment Order with the beneficiary, however, the Bank is entitled not to execute the Payment Order if the Bank suspects that the account stated in the Payment Order does not belong to the beneficiary stated in the Payment Order.

6.5. The Customer may file a claim to the Bank with regard to execution of the Payment Order, following the procedure provided by the Conditions of the Current Account.

7. Responsibility

7.1. The Bank is not liable for loss or additional expenses of the Customer which may occur as a result of non-execution or improper execution of the Payment Order if the account number of the beneficiary of the Payment stated in an IBAN format or other format in the Payment Order of the Customer is invalid or has been stated imprecisely, if it is inconsistent with other details of the Payment Order as well as if the details, purpose of the Payment stated in the Customer’s Payment Order are imprecise or incomplete.

7.2. The Bank is not liable for any loss caused to the Customer if such loss has occurred due to the Customer’s fault as a result of erroneous stating of details of the beneficiary of the Payment, the Beneficiary’s Bank and/or as a result of submission of a Payment Order with erroneously or incompletely stated details of the beneficiary of the Payment, including the purpose of the Payment.

7.3. The Bank is not liable to the Customer for non-execution or inappropriate execution of the Payment Order if its appropriate execution is precluded by laws and regulations and other regulatory requirement applicable to the Bank.


7.4. The Bank is not liable for the Customer’s tax liabilities. The Bank withholds tax from Payments in accordance with the requirements of laws and regulations of the Republic of Latvia.

7.5. The Bank is not responsible to the Customer for non-execution or inappropriate execution of the Payment, if the currency of the Payment does not match the currencies of the accounts stated in the list of Correspondent Banks of the Bank.

7.6. If case if an External Payment it is deemed that the Bank has fulfilled its obligations in execution of the Payment Order to the full extent at the time when the relevant Payment has been debited from the account of the Correspondent Bank of the Bank in the relevant currency of the payment. The Bank is not liable for paying the Payment to its Beneficiary stated in the Payment order or for crediting it into the account of the Beneficiary of the payment.

7.7. All the risks related to the Customer’s funds credited to the Correspondent Accounts, including the risk of insolvency of the Correspondent Banks, are borne by the Customer.

7.8. The Bank is not liable for delays in sending the Payments, loss of the sent payments and errors or distortions during transmission caused by deficiencies or breakdown of the communication equipment, the difference in time zones, fluctuations of currency exchange rates, the fault of Third Parties or any other circumstances beyond the will and control of the Bank.

8. Crediting of Payments to the Account

8.1. The Bank may without consent of the Customer, accept any Payment for crediting thereof to the Customer’s Account, except for depositing cash into the Account.

8.2. The Bank may credit the funds to the Customer’s Account if the Account stated in the Payment order corresponds with the Customer’s Account number (IBAN).

8.3. The Bank may credit the funds to the Customer’s Account solely pursuant to the Customer’s Account Number (IBAN) stated in the Payment Order without verifying the rest of the details of the Customer against the IBAN, in case of Intra-Bank Transfers, External Payments, if the Payment is executed within the Republic of Latvia - without limits of the amount, if the execution of the Payment involves banks of different countries - the amount of payment up to 5,000 euro (or an equivalent amount in other currency).

8.4. The Bank is entitled not to credit the amount of the Payment into the Customer’s Account if the Bank suspects that the name and family name or the name of the beneficiary and the Account number of the beneficiary (IBAN) do not match. In such case, the Bank may perform investigation of the payment or return the Payment to the Payer’s Bank.

8.5. If the Customer’s Account stated by the Payer has been closed or a prior consent of the Bank is necessary for crediting a Payment into the particular account, the Bank may credit the received funds into any other account of the Customer.

8.6. If the currency of the Payment received in the Account is different from the (allowed) currency of the Account, the Bank is entitled, at the time of crediting it, convert the incoming funds into the currency of the Account in accordance with the Bank’s currency exchange rate applicable at the time of exchange of the currency, having withheld the Fee for the performance of currency exchange transaction.

8.7. The Customer is deemed received the Payment as of the moment of crediting the Payment into the Customer’s Account.

8.8. The Payments addressed to the Customer are credited to the Customer’s Account not later than on the Banking Day following the receipt of the Payment on an account of the Bank opened in the Correspondent Bank, except for cases where a later Value Date has been set.

8.9. If the details of the incoming Payment have not been stated or they have been stated imprecisely, the Payment is credited to the Customer’s Account following the verification of the correct details of the Payment.


8.10. The Bank is entitled not to credit to the Customer’s Account the funds which have been credited to the Bank’s Correspondent Account which is not listed in the list of the Bank’s Correspondent Banks until the moment such funds are credited to the Correspondent account stated in the list of the Bank’s Correspondent Banks. In such case, the transfer may be subject to a special Fee of the Bank.

8.11. The Bank is entitled not to credit the Payment addressed to the Customer and return it to the Payer’s Bank in the following cases:

8.11.1. if the Payment has been received from a country included in the list of countries suspected in money laundering or terrorist financing or which are subject to international sanctions;

8.11.2. if the Payment has been received from intermediaries whose parent companies are registered in a country included in the list of countries suspected in money laundering or terrorist financing or which are subject to international sanctions;

8.11.3. if the Payer is included in the list of subjects who are suspected in money laundering or terrorist financing;

8.11.4. if the Payer has been insufficiently identified or the details of the beneficiary, the purpose of the Payment have not been stated or have been stated imprecisely;

8.11.5. if the amount of the Payment exceeds the amount of the Bank’s equity capital and the Customer has not agreed with the Bank on the acceptance of such Payment in advance;

8.11.6. if the Bank has started the process of closing the Customer’s Account or termination of the Business Relationship with the Customer and, due to that, has stopped the provision of Services to the Customer;

8.11.7. in other cases, if they are not contrary to laws and regulations of the Republic of Latvia.

8.12. In the cases provided by laws and regulations of the Republic of Latvia or other countries, the Bank may refrain from explaining the reason of not crediting a Payment.

8.13. For the purpose of identification of the Payer and/or verification of the beneficiary’s details, purpose of the Payment, the Bank may apply to the Payer’s Bank with a request for precise data. If the Bank does not receive the requested information within fifteen (15) Banking days, it may return the Payment to the Payer’s Bank, having withheld the Fee from the Payment to be returned.

8.14. The Bank may receive the Fee for verification and returning of the Payment, as well as to withhold from the Customer’s Account in an acceptance-free manner the Fees requested by other banks involved in the investigation of the Payment or in returning the Payment to the Payer’s Bank.

8.15. When returning the Payment to the Payer’s Bank, the Bank is not liable for loss or additional costs, which may directly or indirectly occur to the Customer due to non-execution of the Payment.

8.16. The Bank is not liable for a Payment which has been addressed to the Customer and which has not reached the Bank’s account with the Correspondent Bank.

9. Types of Fees

9.1. If the Customer has chosen the type of Fee “BEN” in the Payment order, then the Fees of all the banks involved in execution of the Payment, including the Beneficiary’s Bank, Correspondent Bank, and Intermediary Bank, are paid by the beneficiary of the Payment. The Bank’s Fee is withheld at the time of execution of the Payment Order from the amount of the Payment. The banks involved in the execution of the Payment may withhold their Fees from the amount of the Payment.


9.2. If the Customer has chosen the type of Fee “OUR” in the Payment Order, then the Fees of all the banks involved in execution of the Payment, the Beneficiary’s Bank, Correspondent Bank, and Intermediary Bank, are paid by the Customer. The Bank’s Fee is withheld at the time of execution of the Payment Order from the Customer’s account separately from the amount of the Payment. The Bank may withhold the Fees requested by the banks involved in the execution of the Payment in an acceptance-free manner from any Account of the Customer. The Bank transmits the Payment to the Correspondent Bank with the code “OUR” in the relevant field of S.W.I.F.T. instruction - this represents the execution of the stated condition and limits the Bank’s responsibility. The Bank is not liable for the failure of the Intermediary Bank or the Beneficiary’s Bank to execute the Bank’s instructions or for non-receipt of the Payment in full amount due to other reasons outside the Bank’ s control (such as, customs in performing transfers in a particular country). When performing transfers which the Bank is able to transmit directly to the Intermediary Bank or to the Beneficiary’s Bank, the Bank may send the Payment with code “SHA”.

9.3. If the Customer has chosen the type of the Fee “SHA” in the Payment order, the Customer must pay the Fee of the Bank. The Fee is written off in an acceptance-free manner from any Account of the Customer. The Fees of all the other banks involved in the execution of the Payment, including the Beneficiary’s Bank and the Intermediary Bank, are paid by the beneficiary of the Payment. In such case they may withhold their Fees from the amount of the Payment prior to or after crediting the Payment into the account of the beneficiary of the Payment.

9.3.1. For payments in EUR and currencies of Member States of the European Economic Area within the territory of Latvia and other Member States of the European Economic Area, the only type of Fee is “SHA” (In accordance with Article 79 of the Law on Payment Services and electronic money of the Republic of Latvia (31 March 2010) (Article 67 of the Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC), the fee for a service may not be withheld from the amount of the payment).

10. Correspondent Accounts

10.1. The Correspondent Accounts are listed in the list of Correspondent Accounts placed on the Website of the Bank at www.rigensisbank.com.

10.2. The Bank may unilaterally amend or supplement the list of Correspondent Accounts at its discretion without consent or notification of the Customer. Such changes take force as of the moment of their publishing on the Website of the Bank or as of the day stated in the changes if it sets in later.

10.3. The Bank is entitled not to credit to the Customer’s Account the funds which have been credited to the Bank’s Correspondent Account which is not listed in the list of the Bank’s Correspondent Accounts until the moment such funds are credited to the Correspondent Account listed in the list of the Bank’s Correspondent Accounts. In such case the transfer may be subject to a special Fee.

10.4. The Customer bears all the risks related to the execution and safety of the Payment, if it has been credited to the Correspondent Account, which is included into the list of Correspondent Accounts, including the risk of insolvency of the Correspondent Bank.

11. Procedure of correction, revocation and investigation of Payment Orders

11.1. The Customer may request the Bank to carry out corrections of a submitted Payment order by a written Application to the Bank.

11.2. If the processing of Payment Order has not been started before the receipt of the Customer’s Application on correction of the Payment Order, the Bank ensures the correction of the Payment

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Order in accordance with the Application of the Customer. If the Customer wishes to correct a Payment Order, which has already been sent out from the Bank, the Bank, to the extent possible, contacts the Beneficiary’s Bank, the Correspondent Bank and/or the Intermediary Bank in order to request to make corrections in the sent Payment Order in accordance with the Customer’s Application. The Bank does not guarantee that the Payment Order will be corrected.

11.3. The Customer may submit to the Bank a revocation of the Payment Order in writing.

11.3.1. A Payment Order in national currency and in currencies of the Member States of the European Economic Area within the territory of Latvia and other Member States of the European Economic Area with the type of Fee “SHA” may be revoked within ten (10) calendar days following the moment the Payment Order has been executed by the Bank. The reasons for revocation of a Payment may be the following:

- the payment has been duplicated;

- the payment has been performed erroneously due to technical problems;

- the payment has been performed in a fraudulent way.

11.4. The Bank does not guarantee the feasibility of revocation of a Payment Order and the return of the Payment. The Bank contacts the relevant Beneficiary’s Bank, the Intermediary Bank or the Correspondent Bank in order to agree on the return of the Payment if it is possible. The Bank returns the Payment to the Customer by crediting it to the Account not later than the Banking Day following the receipt of the Payment on the Correspondent Account of the Bank.

11.5. The Bank performs investigation of Payments transferred by the Customer or Payments addressed to the Customer and not received by the Bank pursuant to a written Application of the Customer.

11.6. The Bank may receive the Fee for correction, revocation of the Payment Order, for the investigation and return of the Payment, as well as to withhold from the Customer’s Account in an acceptance-free manner the Fees requested by other banks involved in the execution of the relevant Application of the Customer.

11.7. If the Payment has been credited to the Customer’s Account due to the Bank’s error, the Bank may in a non-adversarial manner write off the amount of the Payment from the Customer’s Account without prior notification of the Customer.

11.8. The Customer is obliged, within five (5) Banking Days following the moment of receipt of the Account Statement, to notify the Bank of the Payments credited to the Account in error and to return them to the Bank.


4. CURRENCY EXCHANGE REGULATIONS

1. Terms and definitions used in the Currency Exchange Regulations:

Currency Exchange - exchange of non-cash currency, which is not a Financial Instrument in the meaning of the Financial Instrument Market Law of the Republic of Latvia;

Currency - a national monetary unit, money emitted by the central bank of the state of Currency;

Currency Exchange Order - a Customer’s application submitted to the Bank via Telephone Bank by using Digipass as an identification tool, in the Internet Bank or on paper, for the execution of a Currency Exchange transaction;

Currency Exchange Transaction - a transaction of purchase and/or sale of currency between the Bank and the Customer;

Current Account - the Customer’s Account with the Bank, containing funds freely accessible to the Customer;

Limit - a limit of Currency Exchange Transactions set by the Customer in the Internet Bank in EUR; the Limit applies to Currency Exchange Transactions in another currency in accordance with the currency exchange rate of the European Central Bank on the particular day; if the Customer has not stated the Limit, the Limits of transactions established by the Bank and included in the Price List are applied;

Special Currency Exchange Rate - a Currency Exchange rate set by the Bank for the Customer’s transaction individually, which may be applied to Currency Exchange transactions in the amount exceeding EUR 15,000 (equivalent amount in another currency), and may be different from Standard Currency Exchange rate, and which is valid for a limited time or with regard to a particular concluded Currency Exchange transaction;

Standard Currency Exchange Rate - Currency Exchange rate set by the Bank and applicable at the time of conclusion of the Currency Exchange transaction, which is published on the Bank’s Website and/or in the Internet Bank;

TOD - a Currency Exchange transaction where the Value Date is the day of setting the exchange rate or the Value Date falls on the day of conclusion of the Currency Exchange transaction;

TOM - a Currency Exchange transaction where the Value Date is the Banking day following the day of setting the currency rate;

SPOT – a Currency Exchange transaction where the settlements are carried out on the second working day following the day when the transaction was concluded, according to the previously set Currency Exchange Rate;

Value Date - the date of execution of a Currency Exchange Order.

2. General

2.1. The Bank provides services of non-cash Currency Exchange only and only to Customers who have a Current Account with the Bank. If the Customer has submitted to the Bank a Currency Exchange Order, the Currency Exchange Regulations apply.

2.2. The Bank provides currency exchange services in accordance with the list of currencies quoted by the Bank, which is published on the Bank’s Website. Unquoted currencies are exchanged upon individual agreement with the Customer.

2.3. The Bank exchanges euros and other foreign currencies quoted by the Bank. The Currency Exchange Transactions may be carried out in accordance with a Standard Currency Exchange Rate applicable at the time of conclusion of the Currency Exchange Transaction or in accordance with a Special Currency Exchange Rate.

3. Procedure of conclusion of a Currency Exchange Transaction


3.1. Methods of conclusion of a Currency Exchange Transaction:

3.1.1. Currency Exchange Transactions in accordance with a Standard Currency Exchange Rate and Currency Exchange Transaction in accordance with a Special Currency Exchange Rate in the amount of up to EUR 100,000 (or an equivalent amount in other currency) are carried out upon submission to the Bank of a Currency Exchange Order in person or via Internet Bank or Telephone Bank;

3.1.2. Currency Exchange Transactions in accordance with a Special Currency Exchange Rate in the amount exceeding EUR 100,000 (or an equivalent amount in other currency) are carried out upon submission to the Bank of a Currency Exchange Order in person or via Telephone Bank.

3.2. If the Customer submits a Currency Exchange Order and the conditions of the currency exchange Transaction have not been agreed with the Bank in advance, the Currency Exchange Transaction is deemed carried out only upon confirmation by the Bank of the conditions stated in the Currency Exchange Order.

3.3. Currency Exchange Transaction in accordance with the Standard Currency Exchange Rate is deemed carried out, if the Currency Exchange Order, as drawn up in paper form or in the Internet Bank, has been received by the Bank within the validity term of the Standard Currency Exchange Rate stated in the Currency Exchange Order or, if the Currency Exchange Order has been submitted via Telephone Bank, when the Parties orally agreed on the currency, amounts, currency rate and the Value Date.

3.4. Currency Exchange Transaction in accordance with the Special Currency Exchange Rate is deemed carried out, if the Bank has confirmed the Currency Exchange Order drawn up in paper form or in the Internet Bank, or submitted via Telephone Bank. The confirmation of the Currency Exchange Transaction on the part of the Bank are records on the Account performed in accordance with the Currency Exchange Order.

3.5. Unless the Parties have agreed otherwise, at the time of conclusion and fulfilment of the Currency Exchange Transaction, the Account must contain funds sufficient for the performance of the Currency Exchange Transaction.

3.6. If at the time of execution of the Currency Exchange Order, the Account does not contain funds sufficient for the performance of the Currency Exchange Transaction, the Bank is entitled in an acceptance-free manner to withhold from any account of the Customer the loss caused to the Bank as a result of conclusion of the Currency Exchange Transaction.

4. Execution of Currency Exchange Orders

4.1. The terms for execution of Currency Exchange Orders are stated in the Price List.

4.2. Currency Exchange Order is deemed accepted for execution by the Bank as of the moment the Parties have agreed on the conditions of the relevant Transaction and the Bank has accepted the Currency Exchange Order for execution, regardless of when the Bank has reflected the Price List Transaction by making appropriate entries on the Account.

4.3. The Bank may decline the execution of the Currency Exchange Order if, as a result of execution thereof, the Limit will be exceeded, as well as in any case where, in accordance with the Conditions, the Bank may refrain from provision of Services.

5. Changing Currency Exchange Rates

5.1. The Bank may change the Standard Currency Exchange Rates at any moment without informing the Customer in advance, including within the duration of a Banking Day, taking into account fluctuations of currency rates in financial markets. The new Standard Currency Exchange Rates take force at the time of their publication on the Website of the Bank.


5.2. The Bank may change the Special Currency Exchange Rate during the negotiations with the Customer before the moment of confirmation of the Currency Exchange Order by the Bank.


6.1. If the Parties have agreed on application of the Special Currency Exchange Rate, upon drawing up the Currency Exchange Order on paper or in the Internet Bank, it is necessary to state therein that the Special Currency Exchange Rate is applied, otherwise the Bank may execute the Currency Exchange Order in accordance with the Standard Currency Exchange Rate.

6.2. The Customer may request the Bank to correct or cancel the Currency Exchange Order until the moment it is executed by the Bank by submitting a relevant written application to the Bank in person, via Internet Bank or via other communication means agreed with the Bank, however, the Bank does not guarantee the execution of the correction or cancellation requested by the Customer. Execution of such an application is already impossible if the Bank has carried out a transaction with a Third Party which is necessary for execution of such an Order, and such person refuses to cancel the relevant transaction.

6.3. The Bank may decline the conclusion of a Currency Exchange Transaction or to suspend the Currency Exchange Transaction without explaining the reason.

6.4. The Customer agrees that the Bank may perform audio recording and/or video recording of negotiations between the Parties which take place when providing services to Customers in person and/or when providing Telephone Bank services, and such records are deemed by the Parties sufficient proof of conclusion of a Currency Exchange Transaction, as well as a sufficient basis for registering the conditions of the Currency Exchange Transaction.


5. TERM DEPOSITS REGULATIONS

1. Terms and definitions used in the Term Deposit Agreement:

Account - a Current Account, Term Deposit Account, as well as any other account of the Customer with the Bank;

Amount of the Term Deposit - non-cash funds of the Customer deposited for a specified term with the Bank with a purpose of receiving interest income in the amount calculated in accordance with the Interest Rate stated in the Application for Term Deposit;

Application for a Term Deposit - an Application for placing a deposit, as submitted by the Customer to the Bank;

Term Deposit Account - an account opened in the Customer’s name with the Bank, to which funds are temporarily credited and being accounted;

Term Deposit Agreement - Application for a Term Deposit, the present Term Deposits Regulations of the Bank’s General Business Conditions and the Price List of the Bank;

Term Deposit Interest - interest on the Term Deposit accrued in accordance with the rate stated in the Application for the Term Deposit;

Term Deposit Interest Rate - annual interest rate expressed in figures and/or words as stated in the Application for a Term Deposit;

Term Deposit Opening Date - the date of opening of the Term Deposit as stated in the Application for a Term Deposit.

2. General

2.1. These Term Deposits Regulations apply, if the Customer has submitted to the Bank an Application for a Term Deposit where it has expressed its consent to the present of Term Deposits Regulations and the Price List, or has concluded a separate, individual agreement with the Bank on a Term Deposit (in such case the present Term Deposits Regulations apply to the extent they do not contradict with the conditions of the relevant agreement).

2.2. Conclusion of a Term Deposit Agreement means the Bank’s consent to placing a deposit by the Customer in accordance with the Customer’s wishes stated in the Application for a Term Deposit.

2.3. The minimum amount of a Term Deposit is set in the Price List. The Customer does not have the right to supplement the Amount of the Term Deposit.

2.4. The Customer may choose the type of the Term Deposit in accordance with the Bank’s offer - with payment of interest at the date of maturity of the Term Deposit, with monthly payment of interest, or with payment of interest in accordance with the period chosen by the Customer.

2.5. The Parties may conclude a Term Deposit Agreement only if the Customer has a Current Account with the Bank. The Amount of the Term Deposit may be transferred to the Term Deposit Account only from the Current Account.

2.6. The information on the Term Deposit Account is available to the Customer in the Internet Bank. The Customer, upon submission of a separate request, may receive the Bank’s statement from the Bank stating the status of the Term Deposit Account.

2.7. The Term Deposit Account, which is opened with the Bank, and the amount of money on it is deemed property of the person stated as Customer in the Application for a Term Deposit.

2.8. The Customer may use the Amount of the Term Deposit and/or the interest therefrom as a collateral (financial pledge) for securing the fulfilment of its obligations or the obligations of another customer, in accordance with a relevant agreement with the Bank.


2.9. The funds placed on the Term Deposit Account are pledged to the Bank for securing the fulfilment of the Customer’s obligations and may be enforced in accordance with the procedure of implementation of financial collateral as provided herein.

2.10. The Bank guarantees to the Customer the repayment of the amount of its Term Deposit in accordance with the provisions of the Deposit Guarantee Law of the Republic of Latvia.

2.11. If case of initiation of the bankruptcy or winding-up procedure of the Bank, as well as in other cases provided for by laws and regulations of the Republic of Latvia, the Customer may receive from the Deposit Guarantee Fund a guaranteed compensation for Term Deposits with the Bank in the procedure and amount provided by the Deposit Guarantee Law.

3. Conclusion of Term Deposit Agreement

3.1. In order to conclude a Term Deposit Agreement, the Customer must submit to the Bank an Application for a Term Deposit in form satisfactory to the Bank, in which the Customer states the type, term, amount and currency of the Term Deposit, the Interest Rate and other information necessary for conclusion of a Term Deposit Agreement.

3.2. The Bank considers the Application for the Term Deposit as submitted by the Customer and makes a decision on conclusion of a Term Deposit Agreement.

3.3. If the Bank, following the receipt of the Customer’s Application for a Term Deposit, agrees to conclude a Term Deposit Agreement, the Bank transfers the funds in the Amount of the Term Deposit from the Current Account to the Term Deposit Account. The performance by the Bank of the transfer of the funds in the Amount of the Term Deposit from the Customer’s Current Account to the Term Deposit Account represents the confirmation of the Bank’s consent to conclude a Term Deposit Agreement.

3.4. The Customer is obliged on the Term Deposit Opening Date by the deadline stipulated in the Price List, ensure presence of the amount of money sufficient for transferring the Amount of the Term Deposit to the Term Deposit Account on the Current Account stated in the Application for the Term Deposit. If the Amount of the Term Deposit is not credited to the Term Deposit Account on the Term Deposit Opening Date, it is deemed that the Bank has declined the Application for a Term Deposit.

3.5. The Term Deposit Agreement is valid until the deadline stated in the Application for the Term Deposit or by the moment of early termination thereof by the Customer or by the Bank in accordance with the procedure provided by these Conditions.

3.6. The Term Deposit Agreement consists of an Application for a Term Deposit signed by the Customer, the conditions of which have been agreed with the Bank, the Conditions and the Price List.

4. Calculation of Interest

4.1. Interest is calculated and paid for the Term Deposit Amount available in the Term Deposit Account as of the time of crediting the Term Deposit amount to the Term Deposit Account. The Term Deposit Opening Date and the Term Deposit closing date count as one day.

4.2. Term Deposit Interest is calculated for each day the Term Deposit remains on the Term Deposit Account.

4.3. Term Deposit Interest is calculated on the basis of a year of 365 days and the actual number of days in a month.

4.4. Term Deposit Interest is calculated for each calendar day the Term Deposit remains on the Term Deposit Account based on the balance on the Term Deposit Account by the end of each day.

4.5. Term Deposit Interest rate remains unchanged until expiry of the Term Deposit.


5. Procedure for Disbursement of the Term Deposit Amount and Interest

5.1. The Bank disburses the Amount of the Term Deposit and Term Deposit Interest to the Customer by transferring them to the Current Account stated in the Application for a Term Deposit.

5.2. If at the time of disbursement of the Amount of the Term Deposit, the Amount of the Term Deposit and/or other Customer’s claims deriving from the Term Deposit Agreement serve as security of fulfilment the Customer’s liabilities or liabilities of another customer towards the Bank, then the disbursement of the Amount of the Term Deposit and/or interest to the Customer is not carried out until the secured obligations towards the Bank are completely fulfilled.

5.3. Taking into account the type of Term Deposit chosen in the Application for a Term Deposit, the interest for the Term Deposit is disbursed to the Current Account of the Customer:

5.3.1. each calendar month for the previous month on the Term Deposit Opening Date or on the last day of the month if the particular month does not contain the Term Deposit Opening Date;

5.3.2. each calendar month on the Term Deposit Opening Date or on the last day of particular month if the particular month does not contain the Term Deposit Opening Date, for the previous period of placement of Term Deposit calculated from the Term Deposit Opening Date;

5.3.3. at the maturity of the Term Deposit.

5.4. The accrued Term Deposit Interest is not added to the Amount of the Term Deposit and the Term Deposit Interest is not paid for the accrued interest.

5.5. At the time of disbursement of the Amount of the Term Deposit the Bank pays to the Customer the accrued and undisbursed Term Deposit Interest.

5.6. The Bank is entitled not to pay the calculated Term Deposit Interest in the following cases:

5.6.1. if the Term Deposit is withdrawn/terminated prior to maturity of the Term Deposit;

5.6.2. if the Amount of the Term Deposit or a part thereof serves as financial pledge securing fulfilment of the Customer’s liabilities towards the Bank.

5.7. The day of disbursement of the Term Deposit falls on the date of maturity stated in the Application for a Term Deposit.

5.8. If maturity of the Term Deposit is expressed in months, the day of disbursement of the Term Deposit falls on the Term Deposit Opening Date in the particular month. If maturity of the Term Deposit is expressed in years, the day of disbursement of the Term Deposit falls on the day and month of the Term Deposit Opening Date of the particular year.

5.9. If the particular month does not contain the Term Deposit Opening Date, the day of disbursement of the Term Deposit falls on the day following the Term Deposit Opening Date.

5.10. If the maturity for disbursement of Amount of the Term Deposit or of the Term Deposit Interest falls on the day, which is not a Banking day, the Bank may carry out the disbursement on the following Banking day.

5.11. Upon disbursement of Amount of the Term Deposit and/or of the Term Deposit Interest, the Bank withholds from the amounts to be paid to the Customer the taxes and duties as provided by laws and regulations of the Republic of Latvia.

6. Requesting the Amount of the Term Deposit before maturity of the Term Deposit

6.1. The Customer may request the Bank to disburse the Term Deposit before its maturity as follows:


6.1.1. the Customer submits to the Bank an Application for early disbursement of the Term Deposit;

6.1.2. the Bank disburses to the Customer the Term Deposit within five (5) Banking Days following the date of receipt of the Application for early disbursement of the Term Deposit.

6.2. The Customer may state the term for disbursement of the Term Deposit in the Application for early disbursement of the Term Deposit which is less than five (5) Banking days, upon paying in such case to the Bank the Fee for early disbursement of the Term Deposit in the amount set forth in the Price List applicable on the day of early disbursement of the Term Deposit. The Fee is paid on the day of disbursement of the Term Deposit.

6.3. The Customer may not request early disbursement of Amount of the Term Deposit in parts.

6.4. Prior to disbursement of the Amount of the Term Deposit to the Customer the Bank withholds previously paid Term Deposit Interest, if any, as well as the penalty set forth in the Price List for early disbursement of Amount of the Term Deposit.

6.5. The Bank may decline early disbursement of the Term Deposit if the Amount of the Term Deposit and/or other Customer’s claims deriving from the Term Deposit Agreement serve as security of fulfilment the Customer’s liabilities or liabilities of another customer towards the Bank, unless such prohibition follows from other Agreements concluded by the Customer.


7.1. The Bank is entitled immediately, unilaterally, without prior notification of the Customer, to terminate the Term Deposit Agreement before maturity of the Term Deposit in the following cases:

7.1.1. if the Customer fails to fulfil its obligations towards the Bank, i.e. delays performance of any current obligation of the Customer towards the Bank pursuant to any agreement concluded between the Customer and the Bank;

7.1.2. if the person, whose performance of obligations is guaranteed by the Customer, or the performance of whose obligations is secured by the Term Deposit, fails to fulfil its obligations including it delays the deadline of performance thereof;

7.1.3. If case of death of the private Customer;

7.1.4. if the Bank has received a document on seizure of Customer’s funds and/or a document on the enforcement of the Customer’s obligations;

7.1.5. in other cases provided by applicable laws and regulations.

7.2. If the Term Deposit Agreement has been terminated due to occurrence of an event mentioned in the aforementioned Paragraph hereof, except for death of the private Customer, the Bank may withhold a penalty for termination of the Term Deposit Agreement in an amount equal to the Fee for early disbursement of the Term Deposit as stipulated by the Price List.


6. FINANCIAL INSTRUMENT SERVICES REGULATIONS

1. Terms and definitions used in the Financial Instrument Services Regulations:

Agreement - an Agreement concluded between the Parties on the investment and combined investment services or another agreement on transactions with FIs;

Authentification - the means (password, code cards, electronic key, etc.) provided for in the Remote Account Management Regulations and a set of measures which ensure and enable to assume that the appropriate identity data (User Name and code of the Internet Bank and other) of the Customer and its representative or the data generated therefrom are used by their owner or a duly authorised person;

Authorisation - a set of means and measures established by the Bank, which ensures the possibility for an authenticated person to perform the activities provided by the Agreement (receive information on the FI Account balance, submit Orders and other);

Currency Transaction with FIs - currency SWAP or currency FORWARD transactions to be carried out by the Bank in accordance with the Customer’s order pursuant to a concluded Agreement;

FI Account - an account opened with the Bank in the Customer’s name for accounting and holding of FIs owned by such Customer, if provided by the Agreement;

FI Cash Account - a Customer’s cash account with the Bank used solely for the Customer’s transactions with FIs, if provided by the Agreement;

Means of Authorisation – Digipass device;

Means of Identification - user name in accordance with the Remote Account Management regulations and/or other information identifying the Customer and its representative;

Nominal Acount - an FI Account opened with a Holder of FI, including with the Bank, an FI Account of an FI Cash Account where the funds and financial instruments are stored which do not belong to the Customer but the Customer is their lawful holder;

Order - a form approved by the Bank and filled out by the Customer, where the Customer expresses its will to purchase, to sell FIs, to transmit FIs to another account of the Customer or to other person’s account, to cancel the registration of the FIs, to pledge the FIs, to perform a Currency transaction with the FIs or perform similar actions, which is the basis for the Bank to start the execution of a Transaction;

Place of Sales - places which the Bank is willing to use permanently for execution of Orders in order to ensure the best possible result for the Customer;

Remote Account Management System - Internet Bank, Fax, Telephone Bank;

Transaction - a transaction with FI carried out pursuant to an Order submitted by the Customer;

Transaction Partner - a Third Party with whom the Bank has concluded an agreement or who provides services to the Bank on other grounds for the purposes of servicing FIs and execution of Transactions;

User – a private Customer or another private individual who is authorised on behalf of the Customer to perform transactions with FIs in the Bank, to manage the FI Account and FI Cash Account via Means of Identification and authorisation issued by the Bank.

2. General Provisions

2.1. The Financial Instrument Services Regulations to all Transactions carried out and requested by and between the Bank and the Customer.

2.2. The relationship between the Customer and the Bank is governed by these Regulations, the Agreement and other arrangements reached between the Parties. If case of discrepancies


between these Regulations and the conditions of the Agreement and arrangements, the conditions of the Agreement and arrangements prevail.

2.3. The Parties may carry out Transactions via electronic sales platform in the cases and procedure determined by the Bank. Provision of services via electronic sales platform is performed pursuant to a separate agreement concluded between the Bank and the Customer. The Bank may decline the provision of such a service without explaining the reason.

2.4. The Customer, before submission of each Order, must independently study the current version of these Regulations, the Policy for Execution of Orders with in Transactions with Financial Instruments, the Policy of Status Assignment, the Price List and other regulatory documents of the Bank as stipulated in the Agreement.

2.5. The Customer is aware the Bank does not provide the Customer with investment consultations or financial analysis or other recommendations of general nature. No information provided by the Bank may be deemed a consultation on investments, financial analysis, offer to purchase any FI or carry out a Transaction, or other type of a recommendation of general nature.

2.6. The Customer’s representative who concludes an Agreement or carries out a Transaction on behalf of the Customer, must confirm that he/she has been duly authorised, including he/she may conclude an Agreement or carry out a Transaction, to sign Transaction documents and perform other activities which are necessary for the fulfillment of conditions of the Agreement or the Transaction or which are related therewith, as well as is personally liable towards the Bank in case of insufficient authorisation for conclusion of such Transactions on behalf of the Customer.

2.7. If the FI Account or the FI Cash Account has been credited with assets in error, the Bank writes them off the FI Account of the FI Cash Account of the Customer without prior or following warning or notification of the Customer.

2.8. The Customer may not assign as well as to transfer its claim rights towards the Bank to Third Parties without written consent of the Bank.

3. Exchange of information

3.1. The Customer must verify the accuracy of registration of Transactions on the FI Account and on the FI Cash Account, as well as the accuracy of statements of the FI Account and/or FI Cash Account, not later than within ten (10) days following the conclusion of the relevant Transaction, following the day of receipt of the relevant account statement or the day when the Bank granted the Customer access to the relevant account statement in the Internet Bank. If the Customer fails to submit objections to the Bank within the aforementioned term, it is deemed that the Customer has accepted the statement of the FI Account and/or the FI Cash Account.

3.2. If the Customer has confirmed that it has access to the Internet and agrees with receiving the information addressed to customers via Internet, the Bank’s obligation of informing is fulfilled if the information is made available on the Website of the Bank. If the Customer receives Remote Account Management services, the Customer agrees that the Bank may provide information to the Customer by publishing it in the Internet Bank.

3.3. If the Bank has sent information to the Customer’s address stated in the Agreement or notified in writing to the Bank following the conclusion of the Agreement, the information is deemed received by the Customer.

3.4. The Bank may deliver notifications to the Customer orally as well as record personal and/or telephone conversations with the Customer and process the aforementioned records. The records of conversations may be used as proof for identification of liabilities or obligations of the Bank and the Customer.


3.5. The Customer is obliged, upon the Bank’s request, to provide detailed information on the requested Transaction and the origin of FIs registered on the FI Account.

4. Orders

4.1. Orders must be executed in accordance with the Policy for Execution of Orders, as approved by the Bank, which the Customer gets acquainted with prior to conclusion of the Agreement and the changes whereof are reviewed by the Customer prior to requesting each Transaction, as well as in accordance with the conditions of the Agreement.

4.2. Terms and definitions for evaluation of the contents of the Transactions and Orders:

Asset - FIs or funds; GTC (Good Till Canceled Order) – an Order which is valid for an indefinite period of time until the moment when it is cancelled or executed; GTT (Good Till Time Order) – an Order which is valid until the indicated deadline or until its execution (accepted and valid during working time only); Limit Order – an Order where the minimum purchase price or the maximum sale price is stated (after the price, which is better than the current one). For the purpose of execution of the Order, it is necessary for at least on quotation to appear with the price which is better than the price stated by the Customer. The Buy Limit price (the minimum purchase price) must be lower, and the Sell Limit price (the minimum sale price) must be higher than the current market price, otherwise the Order will be immediately executed as the Market Order; Lot – the minimum amount of Assets set by the Place of Sales and accepted for placing an Order and conclusion of one Transaction in the market; Market Order – an Order and consent to urgently purchase or sell an Asset in accordance with the current price which is offered by the Bank at that particular moment; OCO (One Cancel Other) – an Order which requests the cancellation of one Order provided that another Order will be executed, which is related to it (one cancels another); OTO (One Triggers Other) or IFD (IF Done) – an order to activate the stated Order, if an agreed Order, which is related to it, will be executed; Settlement Date/Value Date – the date of settlement/execution of a transaction of purchase and sales of a particular Asset, which is a Working Day, when the Assets on the FI Account or on the FI Cash Account of the Customer may be credited/written off in accordance with the Business Conditions. If the Value Date of the transaction falls on the day which is not a Working Day, then in such case the Value Date is postponed to the following Working Day; SPREAD – the difference between the demand and offer of the relevant Asset (Bid/Ask) in price quotations; Stop Order – an Order which is executed as the Market Order from the moment when at least one quotation appears which corresponds to the price stated by the Customer (an officially recognised Transaction for the Stop price stated by the Customer (Buy Stop or Sell Stop) is not necessary). The Buy Stop price (stopping the purchase) must be higher, and the Sell Stop price (stopping the sale) must be lower than the current market price, otherwise the order will be immediately executed as a Market Order; Working Day – a banking day which at the same time is a working day in accordance with laws and regulations of the country and Places of Sales which is the location of the market of the relevant Assets, and in the place of location of the Bank; Market Order – an Order to sell or purchase an Asset for the best existing market price.

4.3. Validity term of an Order:


4.3.1. If an Order is intended for execution in a regulated market – in accordance with the rules of a regulated market and common market practice;

4.3.2. If an Order is intended for execution outside the regulated market – one (1) day. 4.4. If several Orders are submitted for execution and the assets on the FI Account and/or on the FI

Cash Account exceed the amount necessary for execution of the Orders, the Bank establishes a sequence of execution of the Orders at its own discretion.

4.5. The price indicated in a sales order is deemed the lowest. The price indicated a purchase order is deemed the highest.

4.6. If for the purpose of execution of the Order a currency exchange is necessary, the Bank may convert the necessary amount of money in accordance with the Bank’s current exchange rate.

4.7. The Bank may execute the Order in parts and split it for execution if, in the opinion of the Bank, it may bring better results for the Customer. The Bank is also entitled to join several Orders into one, including with other orders of the Bank’s customers.

4.8. Upon commencement of execution of the Orders, the Bank may block the FIs and/or funds on the FI Account and/or FI Cash Account, which are necessary for execution of the Order.

4.9. The Customer agrees that the Bank may execute Orders outside the regulated market or the multilateral system of sales.

4.10. The Bank notifies the Customer of the execution of the Order on the Banking Day following the execution of the Order, if it is executed without involving Transaction Partners, and in any other case - on the Banking Day following the receipt of a notification of execution of the Order from the Transaction Partner.

4.11. The Bank registers the FIs addressed to the Customer within one (1) Banking Day following the receipt of the relevant acceptance from the Customer, except for the FIs which are registered in the Central Depositary of Latvia. The Customer is deemed received the FIs as of the moment of registration of the FIs on the FI Account.

4.12. The Bank may decline the registration of the FIs on the Customer’s FI Account without disclosing the grounds, but having informed the Customer thereof immediately after it has become possible.

4.13. The Bank does not execute the Customer’s Orders on transfers if Orders are not satisfactory to the Bank in form, if the Customer’s FI Account does not contain sufficient amount of FIs to execute the Order, and if the FI Cash Account does not contain sufficient amount of money to pay the Fee for execution of the Order and the expenses related to the Order.

4.14. The Bank executes Orders on transfers within five (5) Banking Days following the day of receipt of the relevant Order, provided that they do not contradict the international market practice with regard to the relevant FIs.

4.15. If there is a separate agreement between the Parties, the Customer may carry out Transactions via systems of electronic trading platform. The Customer is bound by rules of the relevant trading platform.

4.16. The Bank may close at its discretion the positions opened at the trading platform for the Customer and to limit the possibility for the Customer to use the trading platform.

4.17. The Bank may determine additional requirements for the Customer with regard to use of the trading platform.

4.18. The Bank is not liable for the risks related to disturbances of the communication system or electricity supply, or unauthorised access to the trading platform by the Third Parties.


5. Settlements

5.1. The Customer pays to the Bank remuneration for the services provided by the Bank with regard to holding of FI’s and transactions with FI in accordance with the applicable Price List of the Bank and the conditions of the concluded Agreements and other arrangements.

5.2. The Bank may amend the FI Section of the Price List having notified the Customer ten (10) days in advance. The effective Price List is available at the Bank as well as on the Bank’s Website.

5.3. The Customer undertakes to pay for all Transactions with FIs, including both transactions carried out independently and transactions carried out by the Bank and/or by a Counterparty on behalf of the Customer.

5.4. The Customer must reimburse the Bank for any expenses related to the Customer’s Transactions. If the Bank, for the purpose of execution of a Transaction, has performed a payment for the Customer, then the Customer, on the day of occurrence of the debt, must reimburse the amount of the relevant payment to the Bank.

5.5. If the Bank has set any discounts on the standard Price List of the Bank, it may cancel such discounts in a unilateral manner.

5.6. For the services not listed in the Price List, but which are necessary for the execution of the Order, the Bank may determine Fees at its own discretion, or, if possible, the Bank and the Customer separately agree upon amount and procedure of payment thereof.

5.7. The Fees must be paid prior to the execution of the service, unless the Bank has consented to another procedure of payment of the Fees.

5.8. If the Customer fails to pay the Fees for the Bank’s service, the Bank is entitled, without prior notice, to suspend further provision of the service to the Customer.

5.9. If the Fees are subject to taxes, duties and similar payments of foreign countries, then such payments must be made by the Customer at its own expense, having increased the amount of the Fees accordingly. The Bank may withhold the payment of Fees from any account of the Customer with the Bank if the FI Cash Account contains insufficient funds. The Bank exchanges the funds on the FI Cash Account and/or any other account of the Customer with the Bank to currency of the Fees or the expenses to be reimbursed by the Customer to the Bank in accordance with the exchange rate set by the Bank for the day when the relevant operation is carried out.


7. PAYMENT CARDS REGULATIONS

1. Terms and definitions used in the Payment Card Issuance and Servicing Agreement:

Agreement – a Payment Card Issuance and Servicing Agreement;

Application – an application for opening of a Card Account and issuance and servicing of a Payment Card;

Card - International Payment System MasterCard Incorporated payment card issued by the Bank;

Card Account - an account to which a Card is linked;

Card Loan - the credit limit/overdraft on the Account of the card granted to the Customer by the Bank;

Card User - a private individual who may use the payment card;

Cards Price List - the effective Price List for transactions with payment cards;

Conditions - conditions of the General and Special Chapters of the General Business Conditions;

MasterCard –International Payment Card Organisation MasterCard Incorporated;

Minimum Payment - amount of mandatory payment calculated in accordance with the Cards Price List if, by the end of the settlements cycle, the use of the Card Loan has been identified;

Payments Processing Centre - the processing centre of SIA “First Data Latvia” (registration number 40003072814), the Bank’s partner, which ensures the processing of Applications with Transactions with Cards;

PIN (Personal Identification Number) Code - a combination of numbers of the password (digital signature), which is known to the card holder only and which is used to confirm a Transaction with the Card;

POS Terminal - a device for reading information on the data of the Card when Transactions with the Card are performed;

Card Loan Application – an application for granting and servicing a payment card loan;

Third Party – Card Transaction participant, except the Customer, Card User or the Bank;

Transaction - payments for goods and services at the places of sales, including Internet, withdrawal of cash by using a Card;

3D Secure Code - a password for safe Internet purchases.

2. Application

2.1. These Payment Cards Regulations govern the relationship between the Bank, the Customer and Card User, which is established upon issuance, use and maintenance of the Cards, as well as upon opening a Card Account.

2.2. The legal relationship between the Bank, the Customer and the Card User related to the servicing and use of the Card are governed by the Agreement but, in case of occurrence of events not provided in the Agreement, it is assumed that the relationship is governed by the rules of International Payment System MasterCard Incorporated as well as by the applicable laws and regulations of the Republic of Latvia and the European Union.

2.3. The Agreement is deemed concluded and taking effect as of the moment of opening a Card Account, concluded for an indefinite term and consisting of the following integral parts:

2.3.1. An Application;


2.3.2. The Regulations,

2.3.3. Cards Price List.

3. Using the Card Account

3.1. The Card Account is opened pursuant to an Application, which is signed by the Customer and the Card User, in one of the currencies offered by the Bank and stated in the Application.

3.2. The Bank may decline the opening of a Card Account and issuance of a Card, or it may offer another type of a Card without stating the grounds for its decision.

3.3. The Customer, by submitting to the Bank a filled out and signed Application, confirms the following:

3.3.1. all the information included in the Application is complete, accurate and true;

3.3.2. if the Card is issued to a Card User stated by the Card User, the information on the Card User is complete, accurate and true, too, as well as that the Card User’s consent has been received for provision of such information to the Bank, for storage and processing of the personal data of the Card User by the Bank, which has been confirmed by the signature of the Card User on the Application;

3.3.3. upon changes to the information stated in the Application, the Customer undertakes to immediately provide the Bank with updated information;

3.3.4. the issued Card is used by the stated Card User only;

3.3.5. the Customer bears full responsibility for the Transactions performed with the Card;

3.3.6. the Customer undertakes to make the Card User aware of these Regulations, and guarantees that the Card User and the Customer himself undertake to observe these Regulations.

3.4. The Card Account is opened for performance of Transactions. Other orders of the Customer executed by the Bank in the Card Account are performed in accordance with provisions of this Section of the Regulations.

3.5. The Bank credits funds to the Card Account by executing the Customer’s orders or orders of the Third Parties who state in their orders the parameters of the Customer’s Card Account, as well as repayable amounts for the completed Transactions. The Bank may suspend the funds credited to the Card Account in accordance with the provisions of this Section of the Regulations.

If the currency of the funds to be credited to the Card Account does not match the currency of the Card Account, then the Customer performs the currency exchange in accordance with the exchange rate set by the Bank for the day of exchange of the funds.

3.6. The amounts of Transactions and the amounts of Fees related to the Transactions applicable at the time of execution of the Transaction in accordance with the Price List, are written off by the Bank from the Card Account in an acceptance-free manner upon receipt of information on the Transaction from the Payments Processing Centre or from MasterCard. The Customer authorises the Bank, without separate order, to withhold also the payment for other services provided by the Bank to the Customer, and the amounts of damages occurred as a result of using the Card as well as failing to implement the conditions of these Regulations.

The aforementioned writing off the Card Account is performed from the Customer’s own funds and, If case of their insufficiency - from the amount of Card Loan, if any, and where necessary, by allowing overdrawn Card Account balance.

The Customer must ensure the funds on the Card Account in the amount sufficient for execution of Payments provided by the Agreement.


3.7. If the currency of the Transaction matches the currency of the Card Account, the amount of the Transaction is written off in the stated currency.

If the currency of the Transaction does not match the currency of the Card Account, then the exchange of the amount of the Transaction is performed to the currency of the Card Account in accordance with the rate set by MasterCard Incorporated at the time of performing the Transaction and in accordance with the general currency exchange rate set by the Bank for the day of writing off the amount of Transaction from the Card Account. When performing the exchange of the amount of Transaction into the currency of the Card Account, a currency difference may occur, of the date of performance of the Transaction differs from the date of writing off the amount of Transaction from the Card Account.

3.8. If upon writing off the amount of Transaction and the Fees related to the Transaction from the Card Account Card Account balance becomes overdrawn, the Bank may without additional consent from the Customer credit funds to the Card Account in the amount of the overdraft of the balance from any account of the Customer with the Bank, where necessary, by performing the exchange of funds into the currency of the Card Account in accordance with the general currency exchange rate determined by the Bank for the date of crediting, as well as withhold from the Customer’s funds the additional Fee for the performance of operations by the Bank.

3.9. In order to increase the safety of funds on the Card Account, the Bank has established limits to the amount of Transactions by setting the daily limits in accordance with the Cards Price List. The Customer may request changes to the daily Limits of Transactions by submitting an order to the Bank in accordance with the procedure established by the Bank.

3.10. The Customer must independently follow the movement of funds on the Card Account in order to timely prevent unauthorised writing off/crediting of funds to/from the Card Account as well as to timely cover the overdraft of the balance of funds arisen as a result of writing off the provided fees and payments in accordance with the Cards Price List. If case of suspicious Transactions on the Card Account, the Customer must act in accordance with Paragraph 7 hereof.

3.11. The Bank may, without prior notification of the Customer, block the Card and the Card Account, if suspicions arise with regard to violation by the Customer or the Card User of the Law on Prevention of Money Laundering and Terrorist Financing, or if suspicions arise with regard to the use of the Card by a person not entitled to do so.

The Bank restores the operation of the Card Account if there are no more reasons for blocking thereof.

4. The Card and Card Transactions

4.1. The Card is the property of the Bank and it is provided for use to the Card User for the performance of Transactions in places of service of Cards. The Card may be used only by the Card User whose name is stated on the Card and/or whose personal data are recorded on the built-in microchip and the magnetic strip on the Card.

4.2. The funds on the Card Account in the currency of the Card are available for Transactions with the Card.

4.3. The Card is active until the expiry of its validity term stated on the Card and it expires on the last day of the month of the stated term. Upon expiry of the validity term, the Card may not be used and the Customer and/or the Card User must destroy it, for instance, by cutting the plastic into pieces.

4.4. Upon expiry of the validity term of the Card, the Bank makes a new Card, unless sixty (60) days prior to the expiry of the determined validity term of the Card the Customer submits to the Bank an order on termination of the Agreement, or the Bank has informed the Customer/Card User that it declines further use of the Card. The Bank writes off the Fee for preparation of the Card from the Card Account in accordance with the Price List in acceptance-free manner.


4.5. The Bank may destroy the Card if the Customer has not received it within three (3) calendar months following its preparation. The Fee for preparation of the Card provided by the Cards Price List is not reimbursed to the Customer.

4.6. If the Card contains a stripe for the specimen signature of the Card User, then the Card User must sign in the place dedicated for the specimen signature prior to commencing the use of the Card.

4.7. The Card User must store the Card in a responsible manner, by preventing unauthorised access of Third Parties to the Card, not to disclose the Card number, validity term, PIN Code, 3D Secure Code, CVC2 code.

4.8. The PIN Code is the Card User’s personal identification number given to the Card User along with the Card. The PIN Code is known to the Card User only and it is equivalent to a signature, which is the confirmation of the Transaction performed with the Card.

4.9. If the Customer/Card User informs the Bank by an Application or a separate application of its intent to use the Card for Internet shopping, the Customer/Card User is issued a 3D Secure Code. The 3D Secure Code ensures additional safety of Transactions made with in the Internet with merchant participating in the Master Card SecureCode System, which is certified by the logo of the Master Card SecureCode System on the merchant’s Internet website.

If the Card User enters a wrong 3D Secure Code then the Transaction is not confirmed. The Transaction is confirmed only in the case of entering a 3D Secure Code, which matches with the code previously registered by the Bank. The information on the valid 3D Secure Code is not available to the Internet merchant.

4.10. If the Internet merchant does not participate in the Master Card SecureCode System, the 3D Secure Code is not requested when performing purchases with such an Internet merchant.

4.11. Entering the PIN Code on the devices when performing Transactions (on POS terminals) or in ATMs when withdrawing cash, as well as entering the 3D Secure Code is deemed the consent of the Customer/Card User to writing off the funds from the Card Account. Disclosure of the PIN Code or the 3D Secure Code to Third Parties is forbidden.

The PIN Code and the 3D Secure Code must be stored in a safe place in order to prevent the availability of such information to Third Parties. It is forbidden to write the PIN Code and the 3D Secure Code on the Card or store such information next to the Card.

4.12. The Customer/Card User acknowledges its irrevocable consent to the Transaction performed with a Card, if:

4.12.1. the documents confirming the Transaction contain a signature of the Customer/Card User;

4.12.2. PIN Code was entered when performing the Transaction;

4.12.3. when performing the Transaction in internet, a 3D Secure Code was entered or the Transaction was confirmed by entering data containing name and family name of the Customer/Card User, the Card number, its validity term and the CVC2 code.

In all cases mentioned above the Bank may deem that the Customer/Card User has confirmed the performed Transactions and they are irrevocable with regard to the amount stated in the document/on the screen of the ATM/on the screen of the POS-terminal/ on the Internet store website.

The Customer/Card User must save the documents confirming the Transaction for two (2) months following the performance of the Transaction.

4.13. If the Payments Processing Centre has informed the Bank of expected technical works in the system ensuring the processing of Transactions with Cards and that, as a result of such works,


there may be failures in performance of authorisation of the Customer/Card Holder by the Card, then the Bank forwards a relevant notification to the Customers in the Internet Bank.

If the Customer and the Card User are different persons, the Customer must immediately forward the aforementioned information to the Card User. The Bank is not liable towards the Card User for his/her potential losses, if the Customer fails to meet such a requirement.

4.14. Upon performance of Transactions, the Customer/Card User must control all the operations with the Card in order to reduce the risk of possible copying of data of the Card and further unauthorised use thereof as well as to perform operations as a result of which the details of the Card are sent or transmitted by any means, except for cases where this is necessary for performance of the Transactions.

4.15. The Customer/Card User must submit a personal identification document if it has been requested by a Third Party accepting the Card for performance of the Transaction.

4.16. If the PIN Code has been entered in error, the Card may be withheld and sent to the Bank. The withheld Cards may not be returned to the Customer/Card User.

4.17. The Card is blocked if the PIN Code has been entered for five (5) times in a row. The blocked Cards are not returned to the Customer/Card User.

4.18. The Bank is not liable for the following:

4.18.1. refusal of a Third Party to accept the Card as the means of payment for services or goods;

4.18.2. the quality of goods or services purchased by Card;

4.18.3. limits of Third Parties, which may affect the interests of the Customer/Card User;

4.18.4. consequences of the performed Transactions in internet and the legal relationship between the Customer/Card User and Third Parties, including potential loss which may occur due to disturbances of Transactions processing systems.

4.19. The Card is issued to the Customer/Card User in a blocked condition. The Customer/Card User within thirty (30) calendar days must submit to the Bank a signed certificate of delivery and acceptance of the Card and a PIN Code, or to notify the Bank of their receipt via the Remote Account Management System.

The Bank activates the Card only upon receipt of a certificate of delivery and acceptance of the Card and a PIN Code, which is signed by the Customer/Card User.

If the Customer fails to perform the aforementioned activities within the set deadline, the Bank may revoke the Card.

4.20. Upon Customer’s/Card User’s request, the Bank sends the Card and/or the PIN Code by post (courier mail). In such case the Customer/Card User is subject to the same duty of returning back to the Bank a certificate of delivery and acceptance of the Card and a PIN Code, as given in the previous Paragraph hereof.

The Customer pays the Card and the PIN Code mailing costs, including the costs of using the services of Third Parties (post/courier costs).

4.21. For the purpose of protection of interests of the Customer and the Bank and in cases related to safety of the Card, based on suspicions of unauthorised use of the Card or the use of the Card for fraudulent purposes, or in cases where a Card Loan is linked to the Card and there is a considerable increase of the risk that the Customer may be unable to meet its payment liabilities against the Bank, the Bank may at any moment prohibit the performance of Transactions by blocking the Card until the circumstances are clarified. In such case the Bank is not liable for loss or expenses of the Customer/Card User. The Customer covers any possible expenses of the Bank, which are related to the aforementioned blocking of the Card.


The Bank unblocks the Card or replaces the blocked Card with a new one, as soon as the aforementioned circumstances for suspension of the operation of the Card cease to exist.

4.22. The Bank may unilaterally and without prior notice set limits on operations with the Card, including limits on Transactions in the following cases:

4.22.1. where the Bank suspects unauthorised use of the Card, in order to diminish the risks of loss to the Customer/Card User;

4.22.2. where the Bank possesses information on fraudulent operations performed by the Customer/Card User;

4.22.3. where, according to the Cards transactions monitoring system data, there are Transactions, which are unusual for the particular Customer/Card User.

The Bank renews operation of the Card, including application of the standard limits on Transactions in accordance with the current Cards Price List, as soon as the grounds for limiting the operation cease to exist.

4.23. The Customer/Card User must, upon the request of the Bank, in the cases provided herein immediately return all the received Cards to the Bank.

4.24. The Customer undertakes to ensure that the Card User fulfils its obligations hereunder. If the Card User fails to observe these Conditions, the Customer bears responsibility towards the Bank as for its own violations.

5. Loss/theft of the Card and/or disclosure of the PIN Code or 3D Secure Code to a Third Party

5.1. If the Card is lost/stolen, or the PIN Code or 3D Secure Code has become known to a Third Party, or the Customer/Card User has detected unauthorised Transactions with the Card (hereinafter, loss of the Card), the Customer/Card User must immediately notify thereof the Bank by telephone +371 67555551 during the working hours of the Bank or to the Payments Processing Centre by telephone +371 66118899 outside the working hours of the Bank.

5.2. The Customer must report the loss of Card to the Bank in writing, or via the Remote Account Management System, within three (3) calendar days following an oral statement referred to in Paragraph 5.1 hereof. Along with the report of loss of Card, the Customer may request the issuance of a new Card instead of the lost one. For issuance of the new Card the Bank withholds a Fee provided in the Cards Price List.

The Customer/Card User is liable for all the Transactions performed with a lost Card, if he/she has failed to report thereof in the procedure provided in Paragraph 5.1 hereof.

5.3. The Customer undertakes, where necessary, to provide the Bank with all the information necessary for investigation of the case of loss of Card, as well as to cover all the expenses caused to the Bank in the case of loss of Card.

5.4. Having found a Card, which was deemed stolen or lost, the Customer/Card User must immediately notify the Bank and destroy the Card, for instance, by cutting the plastic into pieces, or to return it to the Bank.

5.5. The Bank does not reimburse to the corporate Customer the loss of up to 150 euro (one hundred and fifty euro), provided that the loss is caused by loss of the Card.

The provisions of this Paragraph do not apply to loss which have arisen after the Customer has reported the loss of Card to the Bank in accordance with the requirements of Paragraph 5.1 hereof.

5.6. If the Customer/Card User has followed the requirements hereof with regard to safe storage of personalised safety elements, but has performed fraudulent activities, as a result whereof the Card was used by a Third Party for the performance of Transactions, or he/she acted unlawfully or intentionally (deliberately) or as a result of gross negligence allowed the use of the Card


contrary to these Regulations, or failed to report thereof to the Bank, then the Customer is materially liable for all the Transactions to the full extent regardless of their amounts.

6. Card Loan

6.1. The Bank grants the Card Loan upon an Application for a Card Loan submitted by the Customer. An Application for a Card Loan as signed by the Customer and approved by the Bank, together with these Regulations and Cards Price List form a Card Loan Agreement.

6.2. The Bank may grant the Card Loan to the Customer in a lesser amount than the Customer has stated in the Application for the Card Loan without any additional explanations, but having informed the Customer of the decision taken in advance.

6.3. During validity of the Card Loan Agreement, the Bank may reduce the Card Loan or request full repayment of the Card Loan in case of existence of objective reasons, including the grounds to believe that the Customer may be unable to repay the Card Loan and/or settle the liabilities related therewith.

The Bank must inform the Customer of the taken decision, if possible, prior to termination of the Customer’s right to use the Card Loan or the reduction of the Card Loan, or immediately after the suspension of the aforementioned rights by notifying thereof the Customer via means of communication which the Customer and the Bank have agreed upon in the Current Account Opening and Maintenance Agreement. The Customer must immediately implement the Bank’s requirements and pay the amount for reduction of the Card Loan or pay in full the principal amount of the Card Loan, as well as perform a payment for using the Card Loan, penalties and other payments in accordance with the Card Loan Agreement.

6.4. During validity of the Card Loan Agreement, the Customer may request changes to the amount of the Card Loan or completely reject the further use thereof by submitting the relevant application to the Bank and having paid to the Bank the used part of the Card Loan; paying fees for the use of the Card Loan, penalties (if any) and other payments in accordance with the Card Loan Agreement.

6.5. Unless otherwise stipulated by the Card Loan Agreement, the Card Loan becomes mature in one calendar year. The Bank at its own discretion may extend the term of the Card Loan for one more year, provided that the Customer has not notified the Bank of refusal from further use of the Card Loan in thirty (30) days prior to expiry of the set date of maturity of the Card Loan.

If the Customer has rejected the Card Loan, but the term of the Card Loan has been already extended for one year, the Bank is entitled not to return the withheld Fee for reviewing the Card Loan.

6.6. The Bank may request the Customer to place a deposit for securing the Card Loan and to conclude a relevant financial collateral agreement. If the deposit is placed for the purpose of securing the Card Loan, its term must exceed the maturity term of the Card Loan Agreement, unless the Parties have agreed otherwise. The deposited funds in accordance with the financial collateral agreement concluded between the Bank and the Customer are the financial collateral, and the Bank may use them to settle the Customer’s liabilities towards the Bank.

6.7. For the purposes of fulfilment of liabilities towards the Bank in accordance with the Card Loan Agreement, the Customer must make the mandatory Minimum Payment monthly in accordance with the Cards Price List;

6.8. The Parties agree on the following:

6.8.1. the accounting period is a calendar month;

6.8.2. the Card Loan usage fee is calculated for the period of actual usage of the Card Loan (for each calendar day), having assumed that a year contains 360 days, and it is written off the Cards Account at the end of the reference period in an acceptance-free manner.


The stated operation affects the balance of the Card Account and, in case of use of the Card Loan, it increases the actual amount of loan. An overdraft of the balance of the Card Account is allowed, where necessary;

6.8.3. the Minimum Payment is calculated in accordance with the Cards Price List on the actually used amount of the Card Loan, which is set in the end of the reference period upon writing off the Card Loan usage fee and other payments under the Card Loan Agreement;

6.8.4. the Customer is obliged, within the term stipulated in the Cards Price List, to make the Minimum Payment to the Card Account, the amount whereof is notified to the Customer by the Bank in the Internet Bank;

6.8.5. if the Customer fails to make the Minimum Payment within the term stipulated in the Cards Price List, or makes an incomplete Minimum Payment, then it will be deemed as a violation of the Card Loan Agreement and the amount of the Minimum Payment, which the Customer failed to make, is deemed a Debt. Late penalty will be calculated for the Debt in accordance with Cards Price List until the moment of settlement of the Debt, as well as the Bank writes off of a single payment penalty for delaying the Minimum Payment, if such is provided in the applicable Cards Price List;

6.8.6. if an overdraft is detected on the Card Account following the writing off all the payments provided by the Card Loan Agreement, then, with regard to overdrawn balance, an increased fee accrues in accordance with the Cards Price List, and the Customer must immediately repay the overdrawn funds of the Cards Account. The Customer must independently follow the balance of the Card Account and avoid overdrawn balance;

6.8.7. the Debt and/or the overdrawn balance of the Card Account, jointly or individually, as well as the accrued interest for using the Card Loan, penalties and other payments in accordance with the Card Loan Agreement represent the Customer’s Liabilities towards the Bank in accordance with the Card Loan Agreement.

6.9. The Bank is obliged, in accordance with the procedure set forth in the regulations on the Credit Register of the Bank of Latvia, to provide information on the Customer, the amount of the Card Loan and the course of fulfilment of its liabilities in accordance with the Card Loan Agreement.

6.10. If the Customer violates the Card Loan Agreement, i.e. delays repayment of the Customer’s liabilities for ten (10) calendar days or more, the Bank may initiate repayment of the Customer’s liabilities from any account of the Customer with the Bank, including the performance of exchange of currency in accordance with the rate of the Bank set for the day of exchange.

7. Settlement of disputes on Transactions

7.1. If the Customer identifies discrepancies between the executed Transactions and/or their amounts and the Card Account Statement (except for discrepancies between the amounts of Transactions arisen as a result of exchange of currency), or if unauthorised Transactions have been performed on the Account, the Customer is obliged, not later than within forty-five (45) days following the performance of the Transaction, notify thereof the Bank by filling out an application of the form established by the Bank and published on the Bank’s Website, or in free form, by stating the following information: name/family name of the Card User, full number of the card and its validity term, date of performance of the Transaction, place of performance of the Transaction, amount and currency of the Transaction, as well as the contact information enabling to contact the Customer/Card User in order to clarify additional details of the Transaction. The detected discrepancies do not release the Customer from timely and complete performance of obligations towards the Bank.


7.2. The Bank returns to the Customer the funds for the Transactions disputed by the Customer only following their recovery and receipt of the relevant confirmation by the Bank from the MasterCard, by acting in accordance with the provisions and regulations of the Bank and the MasterCard.

If within the process of disputing Transactions it is detected that the Customer’s/Card User’s claim is not justified, the Customer must reimburse the Bank’s expenses occurred in the course of taking measures to dispute unauthorised Transactions in accordance with the Customer’s application, as well as other expenses (including expenditures for preparation of copies of accounts and account statements, etc.), as well as it must pay the Fee to the Bank for the review of an unjustified claim in accordance with the Cards Price List.

7.3. The Bank reviews the Customer’s claim within three (3) calendar months following the receipt of the relevant application from the Customer in the procedure described in Paragraph 7.1 hereof, including all the documents and information on the disputed Transaction from the Customer/Card User and other participants of the Transaction.

7.4. The Bank may ignore the Customer’s claim, taking into account all the requirements of laws and regulations of the Republic of Latvia in respect of protection of consumers’ rights, in the following cases:

7.4.1. the Transaction has been confirmed by the Customer/Card User in accordance with Paragraph 4.12 of this Section hereof;

7.4.2. the Customer’s Application on disputing the Transaction is submitted without observing the requirements of Paragraph 7.1 of this Section hereof;

7.4.3. if the Bank became aware of facts confirming that the Customer has intentionally disclosed the data of his/her Card to a Third Party, or has admitted the situation where the Third Parties got hold of the Card and thus has violated these Regulations;

7.4.4. the Transaction has been performed at the time when the Card was stolen or lost and the Customer had not reported the information thereof to the Bank in the procedure stated in this Section hereof;

7.4.5. in other cases provided by laws and regulations governing banking operations.

7.5. In cases provided by the Law on Payment Services and Electronic Money of the Republic of Latvia, the Customer who, in accordance with the Consumer Rights Protection Law of the Republic of Latvia, must be deemed a consumer, may bring forward reasoned claims to the Bank even with regard to confirmed Transactions, if they were initiated by a party to the Transaction who provides goods/services (merchant), with a precise description of the subject matter of the claim and the circumstances which allow to dispute the particular Transaction.

8. Termination of the Agreement and cancellation of the Card

8.1. The Customer may unilaterally terminate the Agreement at any time by submitting to the Bank the relevant application in writing or via the Remote Account Management System. The Bank blocks the Cards within 1 working day upon of receipt of the Customer’s application. The Agreement is considered terminated in sixty (60) calendar days following the day of receipt of the Customer’s Application or the day of taking a decision by the Bank on termination of the Agreement.

8.2. The Bank may unilaterally terminate the Agreement and suspend the operation of the Card by notifying the Customer seven (7) calendar days in advance via means of communication which the Customer and the Bank have agreed in the Current Account Opening and Maintenance Agreement concluded in respect of the Current Account to which the Card has been linked, in the following cases:

8.2.1. the Bank suspends issuance and maintenance of the Cards of particular type by the Bank;


8.2.2. during a period of more than twelve (12) months, no Transactions with the Card have taken place, the Card Account is not related to any other effective agreement concluded between the Customer and the Bank, and the balance of the Card Account is positive.

8.3. The Bank may terminate the Agreement unilaterally without prior notification of the Customer in the following cases:

8.3.1. if the Bank suspects that the Customer or the Card User violate the Law on Prevention of Money Laundering and Terrorist Financing;

8.3.2. if the Bank suspects that the Card has been used by a party not being authorized thereto;

8.3.3. if the Customer violates provisions of the Agreement or the Card Loan Agreement.

8.4. When initiating the closing of a Card Account, the Bank informs the Customer of the balance of the Card Account. The Customer is obliged, within fifteen (15) calendar days following the receipt of information of the Bank:

8.4.1. to settle in full the negative balance of the Card Account, if any.

If the Customer, within the term given, has not settled the negative balance on the Card Account, the Bank acts in accordance with Paragraph 8.7 of this Section hereof.

8.4.2. to give an order to the Bank to transfer the positive balance on the Card Account to another Account of the Customer with the Bank or to an Account of the Customer with another bank.

If the Bank does not receive the Customer’s order within the given term, the Bank may transfer the balance of the Card Account to the Customer’s Current Account with the Bank or, if the Card Account is a Current Account, to the Account of undetected amounts in accordance with these Conditions.

8.5. Upon termination of the Agreement, the Bank keeps the documents of the Customer/Card User, which the Customer/Card User presented to the Bank upon conclusion of the Agreement or during the period of validity of the Agreement. The Bank does not return to the Customer the fee for making the Card already paid, even if the Card has not been used.

8.6. Termination of the Agreement for any reason does not release the Customer from the obligation to pay to the Bank all Fees due in accordance with the Cards Price List, as well as reimburse the caused damage and settle all the liabilities under the Agreement, which have not been settled until the moment of termination of the Agreement.

8.7. The Bank may, without additional consent from the Customer, settle any outstanding liabilities of the Customer towards the Bank by writing off the funds from any account of the Customer opened with the Bank, where necessary, by performing the exchange into the currency of the outstanding liabilities of the Customer in accordance with the Bank’s rate set for the date of such discharge. If case of lack of funds on the Customer’s Accounts with the Bank, the Bank recovers the Customer’s debt in the procedure set forth herein and in laws and regulations of the Republic of Latvia.

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