PRODUCT DISCLOSURE SHEET FOR FOREIGN CURRENCY OPTIMIZATION ACCOUNT (FCOA)

Transcription

1 PRODUCT DISCLOSURE SHEET FOR FOREIGN CURRENCY OPTIMIZATION ACCOUNT (FCOA) Kindly read this Product Disclosure Sheet (PDS) before you decide to take up the Foreign Currency Optimization Account. Please be sure to also read the general terms and conditions. 1. What is this product about? Foreign Currency Optimization Account (FCOA) is a combination of Foreign Currency Time Deposit Account and a MYR Overdraft facility. 2. What do I get from this product? a) Foreign Currency Time Deposit FOCA-RMB: Minimum time deposit amount of CNY800,000 and in multiple of CNY50,000. FCOA-USD: Minimum time deposit amount of USD150,000 and in multiple of USD10,000. Foreign Currency Time Deposit with Bank of China (Malaysia) Berhad is insured under Malaysia Deposit Insurance Corporation (PIDM). Interest will be paid on maturity date of time deposit and it will automatically rollover together with the principle amount. b) Current Account You will be given a cheque book. c) MYR Overdraft (OD) MYR OD limit is granted based on the FCOA Standard Formula as elaborated under (3). Attractive interest rate [Base Lending Rate (BLR) + 0.5% p.a]. BLR is subject to change. Commitment fee of 1% p.a. will be charged on the unutilized MYR OD portion and will be debited from the account on a monthly basis. First party Foreign Currency Time Deposit is acceptable to secure the MYR OD facility.

2 3. What are my obligations? MYR OD limit is secured against Foreign Currency Time Deposit and it is calculated based on the below FCOA Standard Formula FCOA Standard Formula MYR OD Limit : Deposit Amount X % Hair Cut Pre-determined Exchange Rate The Pre-determined Exchange Rates are as below Type of Foreign Currency Standard Pre-determined Exchange Rate Standard Hair Cut CNY % USD % Example Foreign Currency Predetermined Exchange Rate Amount of Deposit MYR OD Limit CNY 0.5 CNY1,000,000 USD 3.0 USD1,000,000 CNY1,000,000 X 0.5 X 70% = RM350,000 USD1,000,000 X 3 X 70% = RM2,100,000

3 Obligations: Assumption Fixed deposit pledged Total Overdraft limit Interest rate : CNY1,000,000 : RM350,000 : BLR + 0.5% p.a. Your monthly interest payable vary if Base Lending Rate (BLR) changes. Example: If BLR = 6.60% Interest Chargeable = 7.1% p.a. If BLR = 7.60% Interest Chargeable = 8.1% p.a. If BLR = 8.60% Interest Chargeable = 9.1% p.a. Estimated Monthly interest payable RM2,071 RM2,363 RM2, What are the fees and charges I have to pay? A commitment fee of 1% p.a shall be levied on the daily unutilized portion of the MYR Overdraft. The commitment fee will be debited to your account every month end. 5. What if I fail to fulfill my obligations? In the event the MYR Overdraft account limit is exceeded due to non-servicing of interest for three (3) consecutive months, the facility shall be recalled and the fixed deposit will be uplifted with proceeds used to set-off the outstanding balance in the overdraft account. After the set-off, if there is a shortfall, you need to settle it to the bank. Failing which the bank has the absolute right to proceed for legal action. 6. What if I fully settle the loan before its maturity? There is no maturity date of this loan. MYR Overdraft facility is a revolving credit facility Facility is repayable on demand. 7. Do I need a guarantor or collateral? No guarantor. The collateral is foreign currency time deposit placed under lien to Bank of China (Malaysia) Berhad with its value more than the facility amount.

4 8. What are the major risks? If you have problems meeting your loan obligations, kindly contact us early to discuss repayment alternatives. The interest rate on this loan is floating and it is pegged to Base Lending Rate (BLR). Interest rate may be changed according to changes in the BLR. An increase in interest rate may result in higher monthly interest payment. Margin Call Rate (MCR) is pre-determined base on the below foreign exchange rate Type of Foreign Currency FCOA Margin Call Rate (MCR) CNY MYR/CNY = USD MYR/USD = Once the exchange rate is equal or below MCR, the bank will contact you on the following: a) To reduce the MYR Overdraft limit, or b) To top up/increase foreign currency time deposit amount within 3 working days. Failing which, the bank has the right to uplift your foreign currency time deposit and to recall your MYR OD. If any shortfall, you are required to pay to the Bank. You are subject to foreign currency exchange rate risk upon placement/withdrawal of Foreign Currency Time Deposit 9. What do I need to do if there are changes to contact details? It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner. You may either call our Customer Service at or visit any Bank of China (Malaysia) Berhad branches to update your contact details. 10. Where can I get assistance and redress? If you have difficulties in making repayments, you should contact us earliest possible. Alternatively, you may seek the services of Agensi Kaunseling dan Pegurusan Kredit (AKPK), an agency established by Bank Negara Malaysia to provide free services on money management, credit counseling, financial education and debt restructuring for individuals. You can contact AKPK at: Level 8, Maju Junction Mall, 1001, Jalan Sultan Ismail, Kuala Lumpur.

5 Tel: Fax: If you wish to complain on the product or services provided by us, you may contact us at: Bank of China (Malaysia) Berhad, Level 7, Hampshire Place Office, Jalan Mayang Sari, Kuala Lumpur. Tel: Fax: If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia through BNMLINK or BNMTELELINK at: Block D, Bank Negara Malaysia, Jalan Dato Onn, Kuala Lumpur. Tel: Fax: Where can I get further information? Please contact us at our nearest branch to you or call our Customer Service at or visit our website at