Effective 15 July 2016

These terms and conditions govern the provision of BankDirect's foreign exchange services as defined below. By using these services, you agree to be bound by these terms and conditions.

Please read these terms and conditions together with any relevant product brochure and the conditions of any application form carefully. Please also note that any other terms and conditions which relate to your BankDirect account will continue to apply. To the extent that such other terms and conditions are inconsistent with these terms and conditions, these terms and conditions shall prevail (unless such other terms and conditions are expressed to apply instead of these).

All exchange rates referred to in these terms and conditions will be BankDirect's relevant rate applied as at the date of processing unless stated otherwise.

1. Glossary of Terms

"BankDirect", "our", "us" and "we" means ASB Bank Limited

"Correspondent" means a financial services provider (usually a bank), other than BankDirect, whether located in New Zealand or overseas

"Demand Draft" means a Foreign Cheque issued by a Correspondent, and payable at BankDirect

"Foreign Cheque" means a cheque issued in a foreign currency or in New Zealand dollars, and includes a travellers cheque

"IMT" means an international money transfer

"INP" means an international inward payment

"on collection" means when an individual Foreign Cheque is sent, on your specific instructions or as required by us, to a Correspondent for clearance

"payee" means the person(s) or entity the funds are to be paid to

"Service" means any of BankDirect's Foreign Cheque, international money transfer, international inward payment, and foreign cash services

"you" means you, the customer

2. Deposit of Foreign Cheques and Demand Drafts

2.1 All Foreign Cheques must be credited to an BankDirect account. A hold will usually be placed on the funds for a period of 21 business days (or such other period as BankDirect considers necessary), during which time the funds will not be available to you except for interest calculation purposes in accordance with the standard terms of your account.

2.2 Where a Foreign Cheque has been sent by BankDirect on collection, the funds will be credited to your nominated BankDirect account as soon as practical once payment is received. Where applicable, funds will be converted to New Zealand dollars at the INP Buy Rate.

2.3 All Foreign Cheques presented to us for deposit may be dishonoured at any time, including after any BankDirect hold is released and after the funds have been made available to you for withdrawal. In the event of dishonour, the foreign currency amount of the Foreign Cheque will be debited from your account together with any fees and charges imposed by BankDirect and any Correspondent. Where applicable, funds will be debited from your account at the Sell Rate applicable at the time of dishonour. This means that the amount debited from your account may differ from the amount that was credited to your account when the Foreign Cheque was deposited. BankDirect will not be liable for any loss incurred as a result.

2.4 All Demand Drafts presented to us for deposit will (if applicable) be converted at the INP Buy Rate. A Demand Draft may be deposited to an BankDirect account as cleared funds or exchanged for a bank cheque in New Zealand dollars.

2.5 We may, in our sole discretion, agree to exchange travellers cheques for cash rather than requiring them to be deposited into an BankDirect account.

3. Issue of Foreign Cheques

3.1 It is your responsibility to ensure payee details for the issue of a Foreign Cheque are correct. All Foreign Cheques issued by BankDirect must be presented for payment within 6 months from the date of issue (or within 15 months from the date of issue if in Australian dollars). At your request, BankDirect will repurchase or reissue Foreign Cheques issued by BankDirect which have not been presented by the payee within this period. However, any Foreign Cheques issued by BankDirect which are not presented by the payee, or repurchased or reissued by BankDirect, within 6 years from the date of issue will be treated as unclaimed money for the purposes of the Unclaimed Money Act 1971 and may result in your permanent forfeiture of those funds.

3.2 We will make reasonable efforts to stop payment on a Foreign Cheque issued by BankDirect when you request us to do so. Where applicable, a stopped cheque in a foreign currency will be converted into New Zealand dollars at the INP Buy Rate Rate and will be credited to your BankDirect account. Alternatively, you may request us to issue a replacement Foreign Cheque or send an IMT.

3.3 We will charge you a fee to stop payment on a Foreign Cheque and a fee to issue a replacement Foreign Cheque or send an IMT, if required. The Correspondent may also charge a stop payment fee which will be charged back to you.

4. International Money Transfers

4.1 We may involve a Correspondent in the provision of IMT services to you. BankDirect may receive commissions, fee rebates, and revenue sharing payments from a Correspondent in respect of an IMT.

4.2 It is your responsibility to ensure payee details for an IMT, including the account number for the payment, the payee's full name, the payee's physical address and any other information we may require, are correct. Your failure to provide correct payee details may result in the payment being unrecoverable and costs for which you will be liable.

4.3 All fees, commissions, and charges relating to an IMT (whether imposed by a Correspondent or by a Correspondent on BankDirect's behalf) will usually be deducted from the payment. The payee will therefore receive an amount less than the amount of the original payment. If any fees, commissions, and charges are not deducted from the payment, they may be charged back to you and, where applicable, will be converted into New Zealand dollars at the Sell Rate.

4.4 We can provide no guarantee as to when the payment will be available to the payee. Any enquiries we make to a Correspondent on your behalf regarding a payment will be at your cost.

4.5 We will make reasonable efforts to stop, correct, or trace an IMT when you request us to do so. Where applicable, any payments returned in a foreign currency will be converted into New Zealand dollars at the INP Buy Rate and will be credited to your BankDirect account.

4.6 We will charge you a fee to stop, correct, or trace the IMT. Any Correspondents involved may also charge a fee to stop, correct, or trace the IMT which, if the fee is in a foreign currency, will be converted to New Zealand dollars using the Sell Rate.

5. International Inward Payments

We will charge a processing fee on each INP received above a minimum threshold, unless the INP is received via another New Zealand bank and is in New Zealand dollars. The processing fee will usually be deducted from the payment. You will therefore receive an amount less than the amount of the original payment. Where an INP is received by BankDirect in a currency that is different to that of the destination account, the INP will be converted at the INP Buy Rate.

6. Foreign Cash

6.1 We will purchase foreign cash from you at the Cash Buy Rate, and will sell foreign cash to you (in denominations of your choosing, subject to availability) at the Sell Rate.

6.2 We reserve the right to decline acceptance of any foreign cash deposits for any reason, including that the notes presented are:

• damaged or considered unfit for resale;
• no longer in circulation or are irredeemable; or
• otherwise considered un-exchangeable.

6.3 We will retain, without deposit to an account or exchange for New Zealand dollars, any notes in a foreign cash deposit which we suspect to be counterfeit, and will destroy or surrender them to the authorities as appropriate. Your details and the details of the transaction will be recorded for use in any investigation which may be required.

Foreign Exchange

7. Your instructions

We reserve the right to refuse to act (on reasonable grounds) on any instruction in any form (whether electronic or otherwise) given by you or on your behalf, including where we believe your instruction will or may breach any laws, regulations or sanctions of New Zealand or any other country.

8. Our Liability

8.1 We will not be liable for losses or costs caused by abnormal and unforeseeable circumstances outside our reasonable control, which would have been unavoidable despite all efforts to the contrary, for example delays or failures caused by industrial action, problems with any system or network and mechanical breakdown. Nor will we be liable for any losses or costs caused by the involvement of any third party, including any Correspondent.

8.2 Nothing in this agreement limits our liability for acting fraudulently or negligently or otherwise excludes or limits our liability to the extent we are unable to exclude or limit it by law.

9. Your Liability

You are responsible for all liabilities arising from any act or omission of yours in relation to our provision of any Service, and indemnify us against these liabilities unless the liability results directly from our fraudulent or negligent acts or omissions.

10. Consumer Guarantees Act

You agree that where the provision of our Services under these terms and conditions are supplied or acquired in trade, to the maximum extent permitted by law, we and you contract out of the provisions of the Consumer Guarantees Act 1993.

11. Fees and charges

11.1 By using our Services you agree to pay the applicable fees and charges set out in these terms and conditions at the current rates advised by us in our branches and on our website at www.bankdirect.co.nz.

11.2 If you have a BankDirect account, all fees and charges will be debited from your BankDirect account where the relevant transaction was originally processed to/ from unless specified otherwise. If you have insufficient funds to cover the applicable fees and charges we may overdraw your account or, in our sole discretion, debit another account held by you. If you do not have a BankDirect account, all fees and charges will be deducted from the principal sum at the time of the transaction unless specified otherwise.

12 Changes to these Terms and Conditions

We may change these terms and conditions at any time. When informing you of a change to these terms and conditions, we will:
a. give at least 14 days' notice of the change; and
b. communicate such changes, either by direct communication, display in our branches, notice in the media (including public notices), notice on our website or by any method of electronic communication used by you.

13. Confidentiality of your information

13.1 We will collect, hold and use information about you for the purposes of:
a. enabling you to use our Services;
b. confirming your identity, address and date of birth, for example, electronically matching your information with identification information in third party databases;
c. providing you with the use of, and information about, any other BankDirect products and services and services of our related companies (whether incorporated or constituted in New Zealand or elsewhere);
d. both us and our related companies (whether incorporated in New Zealand or elsewhere) complying with regulatory and other requirements;
e. managing your relationship with us so, for example, we can respond to your queries;
f. monitoring and screening your use of products and services for antimoney laundering and countering financing of terrorism purposes;
g. conducting market research, data processing and statistical analysis;
and h. both us and our related companies (whether incorporated in New Zealand or elsewhere) monitoring whether information must be disclosed to the Government or foreign governments for tax purposes.

13.2 You authorise us to obtain information about you from our related companies (whether incorporated or constituted in New Zealand or elsewhere) for the above purposes.

13.3 Your information may be held on behalf of BankDirect by data storage providers, including cloud-based storage providers, in New Zealand or elsewhere.

13.4 You agree your information may be given to:
a. our related companies (whether incorporated or constituted in New Zealand or elsewhere);
b. our agents and other third parties (whether in New Zealand or overseas) that provide services to, or for us;
c. research firms engaged by us to carry out customer surveys and conduct market research;
d. other banks (including overseas banks), agents, contractors or other financial services providers assisting with international transactions and same day cleared payments;
e. the police, certain governmental agencies or other financial institutions where we reasonably believe that disclosure will assist the investigation, detection and/or prevention of fraud or other criminal offences;
f. a regulator for the purpose of carrying out its functions in connection with our business;
g. credit reporting agencies, other credit providers and debt collection agencies; and
h. the Government and foreign governments where we believe disclosure is required to comply with regulatory and other requirements.

13.5 Your information will be collected and held by BankDirect, ASB North Wharf, 12 Jellicoe Street, Auckland. You have rights of access to, and correction of, personal information (as defined in the Privacy Act 1993) held by us.

13.6 We will endeavour to ensure that your information that we hold is accurate. Prompt advice of any changes in your personal contact details such as residential or email address, or telephone or facsimile numbers will help us do this.

13.7 Failure to provide the information or provision of incorrect information may result in you being unable to use the Services.

14.Governing Law

14.1 These terms and conditions shall be governed and construed in accordance with New Zealand law and the courts of New Zealand shall have exclusive jurisdiction.

14.2 The Services may also be directly or indirectly affected by the laws, regulations, practices and policies of any place where a Correspondent operates or where the payment is made from or received or which apply to the currency of any payment.