Business Account

Terms and Conditions 

GENERAL TERMS AND CONDITIONS OF ACCOUNT OPENING The relationship between Transnational Bank Limited (TNB) and the account holder is governed by the following terms and conditions and is subject to any further agreement in writing.

1. Interpretation In these Terms and Conditions, the expression “the Account Holder” shall include any person or persons, firm or corporate body and the word “his” also refers to the female gender.

2. Account Holders Instructions The account holder instructs TNB to honour and to debit to his account with all Cheques, Drafts, bills, Promissory Notes, Acceptances, negotiable instruments and orders drawn, accepted or made out by him and to carry out any Instructions he may give in connection with his account notwithstanding that any such debit or carrying out of any instructions he may give may cause his account to be overdrawn or an overdraft to be increased and attract interest and charges at the prevailing rate. Where no overdraft has been agreed or when the limit of the overdraft agreed has been fully utilized, TNB may nevertheless refuse to carry out any instructions which would result in there being an overdraft or any overdraft limit exceeding that already agreed and sanctioned, as the case may be.

3. Authorized Signatories The Account Holder will give TNB, in an acceptable form, the specimen signature (s) of every person authorized to operate the account. Unless otherwise agreed all signatories are in a position to withdraw all or any of the account holder’s property or securities held by TNB from time to time, to open any further account in the Account Holder’s name, and to withdraw or overdraw any of the account holders accounts.

4. Cheque Books. Cheque books are issued subject to the following conditions:-

a) The account holder agrees to look after and use any cheque book and any cheque form with the utmost care.

b) The account holder further agrees to ensure:-

i. That all uncompleted cheque forms are kept in safe custody at all times.

ii. That TNB is informed immediately upon discovery by the account holder that any cheque book or any cheque form or registration slip in the cheque book has been stolen, lost or mislaid;

iii. That any person preparing a cheque is authorized to do so,

iv.That any cheque is prepared and signed in ink or other indelible writing material.

v. That the amount of cheque is written in such a manner as to prevent any unauthorized addition alteration or deletion of letters or figures,

vi. That any cheque and any alteration is signed by an authorized signatory,

vii.That no uncompleted cheque is given to any stranger or other person when the account holder does not have reasonable grounds for believing him to be trustworthy

viii. That only cheques over printed with an account number are used for that particular account.

c) The account holder is advised that:-

i. Where possible any completed cheque should be crossed with two distinct lines in order to make the cheques negotiable only through a bank, and

ii. If it is known with which bank the beneficiary of a cheque keeps his account then the name of TNB should be added to the crossing in order to make the cheque negotiable only through that particular bank.

d) On receipt, in a form accepted by TNB, of notice from the account holder to stop payment of a cheque, TNB will record the notice. TNB is not responsible if such notice is not acted on otherwise than through negligence. If by reason of negligence a cheque is in fact paid after receipt of such notice, TNB will repay the account holder upon proof to its satisfaction the payment has not discharged or partially discharged any liability of the account holder to any party to the Cheque and receipt of an assignment of the account holder’s rights against all such parties but not otherwise. The account holder will give TNB all assistance necessary to the enforcement of the assigned rights. If reasonable assistance is not forthcoming or if it is proved that the payment has discharged an obligation of the account holder, TNB may re-debit the account holder together with costs of the action and is entitled to be paid this amount. Any notice given to TNB to countermand payment of a cheque must clearly indicate the cheque number, amount, payee’s name and the account number. The account holder must advice TNB if a lost cheque which has been stopped is found and a replacement issued.

e) Upon closure of any account the account holder will return to TNB any remaining uncompleted cheque forms relating to that account and TNB will return to the account holder the value of any revenue Stamps reimbursement for them which is obtained by the Bank. S. Cheques not Drawn on TNB’s Forms in Manner specified by TNB. TNB may refuse payment of any cheque not drawn on the Bank’s cheque form in the manner specified by TNB in accordance with these Terms and Conditions.

6. Simultaneous Order In Excess of Funds Where TNB receives several orders at approximately the same time the total amount of which exceeds the available assets of or the credit granted to the Account Holder, TNB may honour the orders in whatever manner it thinks fit

7. Deposit of Cheques & Other Orders of Payment:

a) All cheques or other orders for payment of whatsoever nature are accepted for deposit for collection at the risk of the Account Holder notwithstanding that TNB sends such instruments for collection through a courier of its choice or other means as it deems necessary. Where any cheque or order is unpaid for any reason whatsoever (including but not limited to physical loss) other than
TNB’s negligence, TNB may debit the account holder with the amount previously credited (taking into account any exchange fluctuation where relevant) in respect of that cheque or order, together with interest since the date of crediting if the account thereby is overdrawn.

b) Before making any withdrawal, the account holder must allow sufficient time to elapse after making any deposit (even of cash) in order to enable TNB to carry out necessary operations to credit the account.

c) Where cheques, other negotiable instruments or commercial documents are deposited for the credit of the account, whether or not payable at or byTNB, the amount of such deposits shall be available for withdrawal only when actually collected by TNB.

d) Although immediate credit is reflected on account holder’s statement of account for cheques received for collection through clearing, they are not available for drawing against until the relative cheques are realized. In case such credits are allowed to be drawn against, it is not be construed that the relative cheques have been honoured. TNB reserves the right to debit the account holder’s account or in any other way recover the amount in case such cheques are returned unpaid. Notwithstanding the provisions of Clause 10 herein any money credited to the account holder in error must be repaid on demand.

8. Payment by 3rd Parties TNB may credit the account holder with amounts paid by third parties. All instruments such as cheques, Drafts, bills of exchange and other negotiable instruments or commercial documents, tendered for collection and credit to the account holder’s account are accepted by TNB subject to the following express terms and conditions:-

a) Instruments not payable at TNB are accepted by TNB only for transmission on behalf of the account holder at the Account Holder’s entire risk and responsibility.

b) Where the instruments are forwarded byTNB by post or through courier services, to other Banks or to any correspondent or agent or sub-agent of TNB, the Post Office and the courier, as also the Bank or the correspondent, agent or sub-agent of TNB will be deemed to be the account holder’s own “agenda for collection”, even though couriers, Bank, correspondents, agents or sub-agents are of TNB’s choice.

c)TNB will not accept any responsibility, and shall not be held liable, for any delay, mutilation or loss of any of the account holder’s instruments, arising from or occasioned by transmission by post or through courier, nor shall TNB be responsible or held liable for any act, neglect, default, failure or insolvency of any Bank, correspondent, agent or sub-agent aforesaid and or their employees and for any loss or damage suffered by the account holder or by any other party as a result thereof.

9. Drawing of Cash:

a) TNB will pay cash to the account holder where the cheque is signed in the presence of the teller by an authorized signatory or by authorized signatories.

b) Where a cash cheque is presented not by the account holder but a third party, TNB will require confirmation by telephone from the account holder or from a representative of the account holder known to TNB before it makes payment.

c) Where cash cheques are presented by employees or other known agents of the account holder the following steps will be taken:

i. The employee or agent will be identified beforehand in a manner accepted to TNB and ii. A limit on such drawings will be agreed in writing with the Bank, and until such limit is agreed, no drawings will be allowed under this paragraph.

d) Where the account holder requests that payments be made under paragraph

e) the account holder indemnifies TNB in respect of all payments made to such employee or known agent, whether or not the money was received by the account holder and whether or not the order for payment presented was in fact the order of the account holder.

f) Where either the employee or agent is not known to TNB or if the cheque exceeds the agreed limit, the provisions of sub-paragraph

(g) of this paragraph shall apply.

10. ATM Cards The Account Holder may be issued with an ATM Card and a PIN (Personal identification Number) that (s)he may use to access the account and will be responsible for its safety and any transactions made using this card.

11. Partnership Accounts In the event of the account holder being a partnership the following additional provisions apply:

a) The partners authorize TNB to carry out instructions countermanding payment of cheques, bills of exchange, promissory notes, or other orders for payment when such instructions are given by any person whose name appears on the mandate and thereby authorized to sign whether or not that person has signed the original payment instruction.

b) The partners authorize TNB to make advances with or without security by way of overdraft, loan or in any other manner or the requests of the partners at the time, and to discount Bills and Promissory Notes on the request of the partners for the time being made in accordance with the mandate.

c) The partners authorize TNB to accept by way of pledge or deposit as security or for safe custody anything belonging to the partnership on the instructions of the partners for the time being made in accordance with the mandate, and to deliver upon the said instructions anything so accepted or held on account of the partnership.