GENERAL TERMS AND CONDITIONS OF PAYMENT SERVICES PROVISION

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1 GENERAL TERMS AND CONDITIONS OF PAYMENT SERVICES PROVISION SECTION I. SCOPE 1. These General Terms and Conditions of Payment Services Provision (hereinafter referred to as General Terms and Conditions) shall provide for the terms, conditions and the manner subject to which THE BULGARIAN AMERICAN CREDIT BANK AD (hereinafter referred to as The Bank) sets up and keeps bank accounts, provides payment services in local and foreign currency, as well as the payment instruments, related to them, pursuant to the Payment Services and Payment Systems Act (PSPSA), executes one-off or reoccurring payment transactions and regulate the relationships, arising between users of payment services, both natural and legal persons (hereinafter referred to as Customer) and the Bank, in relation to the payment services provided In addition to these General Terms and Conditions, the Bank s General Terms and Conditions of Business, the General Terms and Conditions on Remote Banking, the General Terms and Conditions for issuing and using international debit cards, the General Terms and Conditions for issuing and using revolving international credit cards and the General Terms and Conditions for using the service for non-cash payments of liabilities for utilities and other services shall apply to the payment services and the related payment instruments, provided by the Bank Prior to setting up an account and/or delivering payment services, the Bank shall provide each Customer with these General Terms and Conditions, the General Terms and Conditions of Business, the General Terms and Conditions on Remote Banking, the General Terms and Conditions for issuing and using international debit cards and the General Terms and Conditions for issuing and using revolving international credit cards, the General Terms and Conditions for using the service for non-cash payments of liabilities for utilities and other services, the Guidelines on Remote Banking, the General Terms and Conditions on deposits, the Fees and Commissions Tariff and the Interest Rates Bulletin of the Bank. The Bank shall provide the above documents to the Customer on paper and/or long-term storage device under Art. 42 (1) and 1, item 4 of the PSPSA on the Bank s website ( and on the BACB Plus Bank Portal in a manner allowing storage and unchanged reproduction of the stored information For the purposes of setting up and maintaining bank accounts and provisioning of payment services and the related payment instruments, a Framework Agreement on setting up and maintaining bank accounts and payment services provision shall be executed by and between the Bank and the Customer (hereinafter referred to as Framework Agreement) In the event that the Framework Agreement and/or other agreements entered into by and between the Bank and the Customer involve terms and conditions agreed upon that vary from these General Terms and Conditions, such different terms and conditions shall take precedence. 1.5.The Bank reserves their right to amend and modify these General Terms and Conditions. The Bank shall introduce such amendments and cause them to become effective with regard to the Customer in compliance with Art. 98 and 99 hereinafter As regards certain payment transactions and payment instruments such as card transactions, securities transactions, derivatives transactions, etc., as well as services via remote banking, the Bank may apply specific general terms and conditions applicable to the particular type of transaction. Where this results in contradiction between these General Terms and Conditions, on the one hand, and the specific general terms and condition applicable to the respective transaction type, on the other, the specific general terms and conditions shall apply These General Terms and Conditions shall not apply to transactions such as: payment transactions executed entirely with available funds in cash (cash currency exchange), cheque payments, bills of exchange, promissory notes, and all other transactions falling within the scope of exceptions defined in Art. 2, Para 1 of PSPSA and Ordinance No. 3 of the BNB dated July 16, 2009 providing for the terms, conditions and the manner of payment transactions execution and the use of payment instruments (Ordinance No 3) The Bank shall not control the subject and legitimacy of the transaction which is the subject of the payment service, unless otherwise provided for in a legal act The Bank shall process the Customer s personal data in compliance with the Personal Data Protection Act and in the event of prevention, investigation and detection of frauds related to payment services, the Bank may process such data without the person s consent. SECTION II. BANK INFORMATION, TERMS AND DEFINITIONS. 2. BULGARIAN AMERICAN CREDIT BANK AD is entered into the Commercial Register, maintained by the Registry Agency under UIC with a seat and registered address in Sofia City 1000, Sofia Municipality, Sredetz District, 2 Slavyanska Str., address: bacb@bacb.bg. Internet page: The competent supervisory body is the Bulgarian National Bank with registered address in Sofia 1000, 1 Knyaz Alexander I Sq. 3. For the purposes of these General Terms and Conditions the definitions contained hereinafter shall mean: Value Date shall be the reference date used by the Bank to calculate and accrue interests on funds either debited from or credited to a payment account. When interest accrual on the payment account has not been explicitly agreed upon, the value date shall be the date on which the Bank is obligated to debit or credit such account. Direct Debit means a payment service to debit a payer s account where a payment transaction is initiated by the payee on the basis of payer s consent given to the payee, to the payee s bank or to the payer s bank. Durable medium means any instrument which enables the payment service user to store information addressed personally to him in a way accessible for future reference for a period of time adequate to the purposes of the information and which allows the unchanged reproduction of the information stored. Durable medium shall be printouts by account printers, floppy disks, CD-ROMs, DVDs and hard drives of personal computers on which electronic mail can be stored, and Internet sites, as long as such sites are accessible for future reference for a period of time adequate for the purposes of the information and allow the unchanged reproduction of the information stored. Credit transfer shall mean a payment transaction ordered by a payer through their payment services provider for the purposes of making funds available to a payee through payee s payment services provider. Payer and payee may be identical persons. Available Money in Cash Transfer is a payment service where funds are made available by a payer without having set up payment accounts in their name or in the name of the payee, with the sole purpose of transferring payments to the payee or to another payment services provider acting on behalf of the payee and/or where such funds are received on behalf of the payee and are made available at their disposal. 1

2 Transfer Order within a payment system is any order placed by a payment system participant to make available and at the disposal of a payee any amount by means of booking it to accounts set up with a bank, the central bank or a settlement agent or any other order resulting in committing or performing a payment obligation in compliance with the system rules. Payment Instrument means a personalized device(s) and/or a set of procedures agreed between a payment services user and the Bank and used by payment services users to initiate the payment order. Payment Transaction means activities undertaken by a payer or a payee to deposit, transfer or withdraw available money regardless of the legal relationship between a payer and a payee. Payment Account means an account maintained in the name of one or more payment services users and used to execute payment transactions. Payment Order means any order placed by a payer or a payee with the payment services provider, thus giving instructions for the execution of a payment transaction. Payer means a natural or legal person holding a payment account that gives instructions as to the execution of a payment order with regard to such account. Where there is no payment account, payer shall mean a natural or legal person giving payment instructions. User of payment services means a natural or legal person that makes use of a payment service in their capacity of payer or payee or both. Payee means a natural or legal person designated as an end-receiver of funds subject to the respective payment transaction. Consumer means a natural person who under payment services provision agreements acts for purposes other than their trade or professional occupation. Business Day means the day on which payer s or payee s bank involved in the execution of a payment transaction is open for business as required to execute such payment transaction. SECTION III. PAYMENT SERVICES PROVIDED BY THE BANK A. Description of Payment Services provided by the Bank 4.1. The Bank shall provide payment services as follows: 1/ services relating to depositing and withdrawal of money in cash to/from payment accounts, and all operations relating to the maintenance of a payment account; 2/ execution of payment transactions including transfer of funds to a payment account held by the Customer with the Bank or with another payment services provider: a) execution of direct debits, including one-off direct debits; b) execution of credit transfers, including periodic transfer orders; c) execution of payment transactions via payment cards or other similar instruments. 3/ issuing of payment instruments and/or acceptance of payments via payment instruments; 4/ execution of available money transfers. 5/ execution of payment transactions whereby the payer has given their consent for the payment transaction via telecommunication, digital or information device and the payment has been effected to the telecommunication or information system or network operator acting only as intermediary between the payment service user and the supplier of goods or services The Customer may perform mass transfers of amounts in BGN from their own current account in the Bank into other individuals accounts in the Bank or into accounts in other banks in Bulgaria, as per a file for mass transfer (FMT) submitted by the Customer in a format, described in the Bank s website. The FMT shall be ordered/signed by the legal representatives of the Customer or by dully authorized representatives. The Customer shall send to the Bank the FMT electronically through the remote banking channels. Exceptionally, in case of technical problem with a remote banking channel, the Customer may submit the FMT at a Bank s desk on a technical device in electronic format, together with a List of payments attached thereto and signed by the legal or authorized representative of the Customer. The list shall consist of the file s contents. In case of differences between the data in the List of payments and the data in the file, the Bank shall consider the data in the file. When processing the FMT, the Bank shall consider the account of the ordering person, and not their name. The deadline for receiving the FMT for processing the same working day is h. The FMT received after this time, but within the Bank s working hours, shall be processed the same working day for the ordering person, as the internal bank transfers shall be received by the beneficiaries the same working day and the interbank transfers shall be received by the beneficiaries the next working day. Transfers through the RINGS system in FMT shall be received and processed the same working day, only if received till 15 h. The Customer shall be fully responsible for all incorrectly transferred amounts by the Bank, as a result of incorrect or inaccurate data filled in the electronic file sent as well as for all incorrectky transferred amounts by the Bank as a result of filled in incorrect or inaccurate number of the bank account (IBAN) or BIC code of the recepient s bank. The Bank shall not execute the Customer s instructions and shall not process FMT in the presence of one or more of the following circumstances: a/ invalid account number (IBAN) or BIC code of the recipient s bank, stated in the FMT; b/insufficient availability in the Customer s account for execution of all transfers of FMT and payment of due taxes and commissions to the Bank; c/other unexecuted conditions and/or mistakes in the FMT format; d/ absence of a current account in the name of some of the persons stated. The Bank shall inform the Customer for failure to execute the payments, ordered in the FMT through the remote channel, which the Customer has used for ordering the mass transfers, and in case the file has been received at a bank s desk the Bank shall inform the Customer through a telephone call or via . B. Information provided by the Customer 5. To ensure precise execution of payment orders, the Customer shall provide all relevant information to the Bank as required in the standard payment order forms. To clearly identify payee, it is required that payer supplies payee s international bank account number (IBAN), the international bank identification code (BIC) or any other unique identifier of payee s bank account (for countries outside the European Community). C. Customer s authorization of payment transactions 6. The Bank shall execute payment transactions subject to these General Terms and Conditions, provided that such transactions have been authorized by the Customer. A payment transaction shall be deemed authorized provided that the Customer has placed a payment order (instruction) or have provided their consent for the execution of the payment transaction in any other form expressly agreed upon between the Bank and the Customer or provided for in the Bank s relevant General Terms and Conditions or in a contract concluded between the Bank and the Customer. A payment transaction shall not be deemed authorized upon lack of such consent. 7. The Customer shall place their payment order (instruction) or consent prior to the execution of a payment transaction. 8. It shall be deemed that The Customer has ordered or given their consent for the execution of a payment transaction when one of the following requirements is met: The Customer, either in person or through a duly authorized person has signed a standard payment order (instruction) form on paper and either the Customer or an authorized person has deposited it at the customer service desks of the Bank; 2

3 The Customer, either in person or through a duly authorized person has signed a standard payment order (instruction) which is then faxed to the Bank, provided that prior to that the Customer has signed a sample statement authorizing the Bank to accept and execute payment orders received via fax; The Customer, either in person or through a duly authorized person (as permissible under the General Terms and Conditions on Remote Banking) has authorized a payment transaction via the Bank s remote channel in line with the procedure provided for in the Bank s General Terms and Conditions on Remote Banking and in compliance with the Bank s Guidelines on Remote Banking (requirements to the format, size of submitted documents, etc.) ; by virtue of other written agreement or document signed by the Bank and the Customer, the Customer has expressly provided their consent and/or has instructed the Bank to execute a payment transaction. 9. The Bank shall execute payment transactions as instructed by the Customer only provided that the following requirements have been simultaneously met: 9.1. the transaction has been ordered by the Customer or their duly authorized representative in line with the procedure (by a Power of Attorney certified by a Notary) or the Bank has received the Customer s consent for the respective payment transaction to take place in the manner provided for in Art. 8 above; 9.2. The Customer has sufficient available funds in their account for the respective payment transaction to be executed and to cover all fees and commissions charged by the Bank relating to it; 9.3. The Customer has provided the Bank with all duly executed payment documents and other relevant documents required pursuant to a legal act or any other documents the Bank may require to execute a transaction; 9.4. The amount and type of payment transaction shall be within the powers of the Customer or the duly authorized person; 9.5. The payment order or instruction shall be in line with the existing legislative framework, the Framework Agreements signed with the Customer, these General Terms and Conditions, the General Terms and Conditions under Art above or the Guidelines on Remote Banking of the Bank The payment order or instruction shall be clear and accurate and shall include all required items in line with the bank templates The payment order shall be for an amount not exceeding the maximum transaction value entered in the qualified electronic signature certificate where such certificates are used or not exceeding the relevant Customer s powers Upon failure to comply with the provisions herein, the Bank shall not be held liable for any damages resulting from failure to execute the Customer s orders. 10. The Bank may debit the account of the Customer without their prior consent in the event of: reimbursement of due by the Customer fees, costs and commissions for banking services rendered by/through the Bank; execution of adjustment transfer ex officio in line with PSPSA and Ordinance No. 3 of the BNB; restraint ordered by a competent authority on receivables of the Customer due to be credited to their bank accounts with the Bank; execution of an enforcement execution in the manner provided for by the law ; payment under a direct debit order already approved by the Customer; ex officio collection by the Bank for which the Customer has given their prior consent; other cases as set forth by the law and the General Terms and Conditions of the Bank or in a written agreement with the Customer. 11. The Bank shall not execute partial transactions under separate transfer orders or direct debit orders. Partial payments may be done solely upon legal enforcements in the manner provided for by the law and in the event of ex officio collection on behalf of the Bank. 12. The Bank shall accept payment orders that have been filled in a form other than the standard sample forms provided by the Bank only when such orders contain all required data and have been completed in compliance with the requirements of applicable legal acts and subordinate legislation. D. Withdrawal of Consent 13. The Customer may withdraw a payment order or their consent for executing a payment transaction at any time, but not later than the time such payment transaction becomes irrevocable as provided for in this Section III, item E below. E. Revocable/Irrevocable Payment Transactions 14. The Customer, when acting as a payer, may not revoke a payment order once it is received by the Bank. 15. Where a payment transaction is to be executed at the demand of or through a payee, payer may not cancel a payment order following its placement with the Bank or where payer has already given their consent for the execution of a payment transaction in favour of a payee. 16. In the event that the Customer submits a payment order with the Bank having arranged for the payment to be executed on a definite day or on the day, following the expiration of a certain deadline, or on the day on which the payer makes available to the Bank sufficient funds to carry out such payment, the Customer may cancel their payment order not later than the end of the working day, preceding the negotiated day. 17. Where direct debit is concerned, the Customer in their capacity as payer may cancel their payment order not later than the end of the working day, preceding the day on which debiting their account has been agreed upon. 18. Upon expiration of the deadlines under Articles above, but not later than the time of crediting the payee s account, payment order may be cancelled only upon an explicit agreement between the Customer and the Bank, and provided, as is the case with Art. 17 above, payee s consent is obtained. 19. The Bank is entitled to charge a payment order cancellation fee should such fee is envisaged in the Fees and Commissions Tariff of the Bank. 20. Articles 14 to 18 above shall not apply where a Customer is a legal person or a sole trader (that is, Customer is not a Consumer). A Customer who is a legal person or a sole trader (i.e. is not a Consumer) may cancel a payment transfer order only upon the Bank s consent provided that such consent has been given prior to the transfer execution. F. Execution of Direct Debit in Bulgarian Leva 21. Upon direct debit payments in Bulgarian Leva the Customer acting as payer shall provide to the Bank their prior consent, a copy of which shall also be sent to payee. 22. The Bank of the Customer, acting as payee, shall accept direct debit orders and present them to the bank of the payer without verifying the grounds for using direct debit. 23. Prior to executing payment on a direct debit order, the Bank of the Customer in their capacity as payer shall verify whether: payer s prior consent for direct debit is available; there are sufficient funds available in the payer s account or alternatively, loan provided, that are sufficient to allow for the execution of a direct debit; all requirements for direct debit execution are met, including all documents required for such execution are in place where submission of such documents has been agreed upon. 3

4 G. Execution of Payment Transactions. G.1. Receipt of Payment Orders. 24. The time of payment order receipt shall be the time at which the Bank receives a payment order, handed directly by the Customer as a payer or indirectly by or through a payee in the manner provided for in the General Terms and Conditions hereunder and/or the General Terms and Conditions of the Bank applicable to the respective type of payment transaction. 25. In the event that the time of order receipt falls on a non-business day for the Bank, the payment order shall be deemed received on the following business day. 26. Payment orders placed with the Bank not later than 15:00 h shall be processed on the day of their receipt. Payment orders in BGN, received after 15:00 h but within the working hours of the Bank shall be processed the same working day for the ordering person, as the internal bank transfers shall be received by the beneficiaries the same working day and the interbank transfers shall be received by the beneficiaries the next working day. Payment orders in other currency, received after 15:00 h shall be processed the following working day. The execution of payment orders received via the Bank s Remote Banking Channels shall be regulated by the Bank s General Terms and Conditions on Remote Banking. 27. Where a Customer placing a payment order and the Bank make arrangements that a payment order is to be executed on a certain day or on the day, following the expiration of a certain deadline, or on the day on which Customer makes available the funds necessary to execute a payment order, the time of payment order receipt shall be the date thus arranged, and when this day is a non-business day for the Bank, the following business day shall be deemed as the date of payment order receipt. G.2. Right of the Bank to Refuse Execution of a Payment Order 28. The Bank shall have the right to refuse to execute a payment transaction placed by the Customer in the event of restrictions imposed by the applicable law of the Republic of Bulgaria, the applicable rules on payment transactions and these General Terms and Conditions, the applicable General Terms and Conditions of the Bank relating to the respective type of payment transactions and/or any other arrangements between the Customer and the Bank as regards the terms and conditions subject to which the bank account is maintained as well as where the payment order (instruction) is unclear, inaccurate and does not include all the required data in line with the template bank forms or does not comply with the Guidelines on Remote Banking. 29. Where the Bank refuses to execute a payment order, if possible, the Bank shall inform the Customer of their grounds for such refusal and the procedure to adjust the factual errors resulting in refusal, unless a restriction to provide such information is in place in compliance with a legal act or an act of the European Community. 30. The Bank shall promptly supply or make available to the Customer such notification timely, in one of the following ways: at the customer service desks of the Bank, via telephone at the telephone contacts provided by the Customer, via electronic mail at the address supplied by the Customer or via the Remote banking channels of the Bank, within the deadlines for executing payment transactions in Bulgarian Leva, Euro and one-off foreign currency exchange payment transactions between Bulgarian Leva and Euro, provided that such foreign currency conversion is carried out within the Republic of Bulgaria, as well as in cases of cross-border payment transaction in Euros. 31. The Bank shall have no right to refuse the execution of a payment order authorized by the Customer when all pre-requisites as set forth in the General Terms and Conditions are in place, unless the execution of such order is restricted by virtue of an applicable legal ordinance or the Bank s relevant General Terms and Conditions, applicable for the respective payment transaction. 32. A payment order rejected by the Bank shall be deemed as not received. G.3. Execution Deadlines G.3.1. Deadlines for executing payment transactions in Bulgarian Leva, Euro and one-off foreign currency exchange payment transactions between Bulgarian Leva and Euro, provided that the foreign currency conversion is carried out within the Republic of Bulgaria, as well as in the cases of cross-border payment transactions where payment transactions are executed in Euro. 33. The Bank shall ensure crediting payment accounts of payee s payment services provider with the respective payment transaction amount within two business days at the latest following the time of payment order receipt. 34. When executing payment transactions in Bulgarian Leva via the RINGS payment system received by 15 h, the Bank shall ensure that the payment account of payee s bank is credited on the business day of payment order receipt within 1 hour from the receipt of the payment order. 35. Upon receipt of funds to payment accounts, the Bank shall determine the value date to credit such accounts and shall make available the funds to payee s account following receipt of funds from the respective payment services provider. The value date of crediting payee s account shall be no later than the business day on which the Bank s account is credited with the payment transaction amount. 36. Upon receipt of payment orders carrying an execution date (future date) different from the date of order placement, the Bank shall execute the orders with the value date stated on the payment order. 37. The Bank shall accept payment documents carrying future dates of order execution of no more than 5 (five) business days from the date of payment order placement. 38. Upon execution of a direct debit order, the Bank shall provide such payment order to payee s payment services provider on the business day of payment order receipt or not later than the following business day, but in such a manner as to ensure that settlement is executed on the agreed upon date. 39. In the event that within 5 (five) business days following receipt of direct debit order the conditions set forth in Art. 23 do not occur simultaneously, the Bank may refuse to execute a direct debit order and shall duly inform payee s bank of such developments. 40. Where a payee has not set up a payment account with the Bank, the Bank shall make available to payee the funds received within the deadlines cited above. 41. Where money in cash is deposited by a consumer to a payment account with the Bank in the currency of which such payment account was opened, the Bank shall make available the deposited amount and shall determine the value date of crediting the account immediately after the time funds are received. Where a payment services user is not a consumer, the amount shall be made available and the value date shall be determined not later than the following business day on which funds are received. G.3.2. Deadlines For Executing Payment Transactions in Other Foreign Currencies 42. When executing payment transactions in other foreign currencies and except for the cases referred to in G.3.1., the Bank shall apply the deadlines cited above with the exception of cases where the Bank executes payment services on behalf of a payer. The Bank, then, shall ensure that payee s payment services provider account is credited within 4 business days at latest following the time of payment order receipt. 43. When both payer and payee have their payment accounts set up with the Bank, payee s account shall be credited with the same business day value date. SECTION IV. FEES, COMMISSIONS, INTEREST RATES AND FOREIGN CURRENCY EXCHANGE RATES RELATING TO PAYMENT SERVICES PROVISION A. Fees and Commissions 44. The Bank shall charge the Customer fees and commissions as set forth in the Fees and Commissions Tariff of the Bank for the provision of payment services and transactions. The Bank and the Customer may negotiate and agree upon different fees and commissions. The Bank shall 4

5 reserve their right to amend the Fees and Commissions Tariff, and such amendments relating to the fees and commissions charged for payment services provided under these General Terms and Conditions shall be introduced and become effective in compliance with Art. 98 and 99 hereunder. This provision shall not apply for Customers legal entities or sole traders (i.e. an entity that is not consumer under 1, item. 23 of the Additional Provisions of the PSPSA). 45. Where a Customer is a legal person or a sole trader (that is, not a Consumer), the Bank shall accrue and charge fees for providing additional reports and information and these shall be defined in the Fees and Commissions Tariff of the Bank. 46. Upon execution of payment transactions within the European Community, payer shall pay fees charged by their bank, while payee is responsible for the payment of fees collected by their bank, i.e., when executing such payment transactions, the Bank shall execute these payment orders, applying an SHA option for fees and expenses (shared the principle of shared fees), unless the payment transaction requires currency exchange. 47. The Customer may order a transfer by choosing among one of the applicable options: (1) SHA (shared fees); (2) OUR (all fees are at the expense of payer) or (3) BEN (all fees are at the expense of payee) in the following cases: a) the transfer is in a currency, different from the official currency of the respective EU member state; b) in the event that the payment transaction is directed to a country outside the European Community; c) where the payer and the payee have entered into arrangements. B. Interest Rates 48. With regard to payment accounts opened, the Bank shall apply the interest rates defined in the Interest Rates Bulletin of the Bank. The Bank and the Customer may negotiate and arrange for different interest rates to be applied. The Bank reserves their right to change the interest rates on the payment accounts opened. Such changes shall be introduced and take effect in compliance with Art. 98 and Art. 99 hereunder. This provision shall not apply for Customers legal entities or sole traders (i.e. an entity that is not a consumer under 1, item 23 of the Additional Provisions of the PSPSA). Whenever changes of interest rates are beneficial to the Customer these shall be applied without prior notification. The deposit accounts offered by the Bank shall be used only for the purpose of storing money and the interest rate changes regarding such accounts shall apply without a prior notification. 49. In the event that, as per the Bulgarian Tax Legislation, the Customer owes taxes on the Customer s interest income, the Bank shall ex-officio accrue and withhold such taxes. C. Foreign Currency Exchange Rate 50. Upon foreign currency conversion, the Bank shall apply the buy-rate and sell-rate, respectively, as announced at the customer service desks of the Bank and on the internet site of the Bank ( the BACB Plus Bank Portal and the Bank s online banking system. These exchange rates are subject to change within the day and any changes shall be announced at the customer service desks of the Bank and on the internet site of the Bank ( The Bank and the Customer may also arrange other exchange rates. Where currency transactions and currency exchange are carried out, the Bank shall apply the exchange rates valid at the time of accounting the Customer s payment order (instructions) or shall apply the exchange rate arranged in advance with the Customer. 51. Upon receipt of a foreign currency transfer where the currency of received funds is different from the currency of the Customer s payment account, the Customer shall have given their consent that the Bank converts ex officio the funds received into the currency of the payment account. Should such be the case, the Bank shall apply the exchange rate valid as of the moment of currency conversion. SECTION V. CUSTOMER COMMUNICATION RELATING TO PAYMENT SERVICES PROVISION 52. For the purposes of booking payment transactions into payment accounts of the Customer, the Bank shall prepare and provide to the Customer or their duly authorized representative A Statement of Account in the manner and at the times as agreed upon between the Parties. Statement of Accounts shall not be issued for periods where no transactions have been recorded into the account. Upon request, the Customer may request a print-out of each entry resulting in changes of account balances. 53. Upon setting up an account, the Customer shall state and confirm to the Bank in writing the manner in which the Customer wishes to receive their Statements of Account as well as any written communication, notifications and other information provided by the Bank (hereinafter referred to as Customer Communication), as well as the frequency to receive such Communication. At any given time of validity of the Framework Agreement, the Customer may choose to change both the manner and the frequency of receiving communications by sending a request in writing to the Bank. The official language of such Communication shall be Bulgarian. The mailing address or address declared by the Customer upon setting up of the account shall be deemed the addresses to which the Bank shall send all notifications, communications, Customer Communication and other documents provided for in these General Terms and Conditions. Where the Customer has changed their addresses without notifying timely the Bank in writing about the Customer s new mailing address or address, all notifications, communications, Customer Communication and other documents sent to the old address shall be deemed received. 54. Customers natural persons who are users of some of the Bank s Remote Banking Channels will receive the Statement of Account via the Bank s relevant Remote Banking Channel. Customers natural persons may also request from the Bank s customer service desks a Statement of Account on paper for previous periods (upon request) Upon setting up an account, the Customer - legal entity or sole trader, shall choose the manner to receive their Statement of Account: 1/ at the customer service desks of the Bank, 2/ via postal services at the addresses stated by the Customer as correspondence address, 3/ via electronic message sent to an electronic address stated by the Customer, 4/ via any of the Bank s Remote Banking Channels Customers that are legal entities or sole traders using Remote Banking Channels shall receive by default their Statement of Account via the relevant Remote Banking Channel (main settings) and they may also request to have their Statement received in an additional way/frequency (additional settings). In such case the Customer s accounts shall be charged the higher of the two monthly maintenance fees for the two setting types (main and additional) The Bank shall send monthly Statements of Account by mail to the mailing address declared by the Customer between the first and tenth day of the month following the month in which the Statement has been issued Upon setting up an account, Customers that are legal entities or sole traders shall choose the frequency at which the above mentioned Statement of Account shall be provided: 1/ upon each transaction recorded into the account, 2/ at the end of each month (monthly statement) or 3/ upon Customer s request Customers that are legal entities or sole traders using Remote Banking Channels shall receive by default their Statement of Account via the relevant Remote Banking Channel upon each recorded transaction. 56. The Statement of Account shall be received upon request at the Bank s offices upon the Customer s express request and a single Statement of Account per calendar month shall be included in the monthly maintenance fee of the account. The Customer shall be charged extra for each following Statement of Account requested during the same calendar month in compliance with the Bank s Tariff Depending on the manner the Customer chooses to receive Customer Communication, the Bank shall deem that the Customer has been notified of executed payment transaction(s) and that they have received their Communication as defined hereunder: where a Customer chooses to receive their Communication at the customer service desks of the Bank, it shall be deemed that the Customer has been notified on the date of Banking Communication distribution into the Customer Communication files maintained with the Bank. Should 5

6 such be the case, the Bank shall make available to the Customer the Statements(s) of Account(s) not later than the following business day after the date on which such statement has been prepared depending on the frequency of receipt as chosen by the Customer; where a Customer chooses to receive Customer Communication via postal services, the Customer shall be deemed duly notified by the Bank within 7 business days from the date on which the Bank has dispatched the Customer Communication to the addresses stated by the Customer; where a Customer chooses to receive Customer Communication via electronic mail sent to an address stated by the Customer, the Customer shall be deemed duly notified on the date on which the Bank has issued/sent an electronic message to the address stated by the Customer; Regardless of the manner chosen by the Customer to receive Customer Communication, where a Customer also uses a Remote Banking Channel of the Bank, which ensures ongoing monitoring of all transactions in real time, the Customer shall be deemed duly notified as soon as they have booked a transaction into the system; where a Customer chooses to receive Customer Communication upon request, the Customer shall be deemed duly notified as of the moment of booking a transaction regardless of the time of handing the written communication to the Customer or their duly authorized representative. The Customer is aware and agrees that the latter manner of receiving Customer Communication involves the risk of late receipt; Any claims or objections relating to the Customer Communication shall be submitted to the Bank in writing within the deadlines as per Art. 63 herein. Unless a Customer submits any objections within the deadlines stated above, it shall be deemed that the Customer has given their consent and approval. SECTION VI. USING PAYMENT INSTRUMENTS A. Customers Obligations to Ensure Secure Use of Payment Instruments Provided by the Bank. 58. When using payment instruments, provided by the Bank, the Customer shall take appropriate precautions to ensure the security of such payment instruments: the Customer shall use the payment instruments in compliance with the terms and conditions providing for their issuance and use; upon receipt of a payment instrument, the Customer shall promptly undertake reasonable measures to prevent unauthorized access to their personalized protection data. The Customer shall not record any information of such data on the payment instrument itself and shall not store such data alongside a payment instrument; if the Customer becomes aware that a payment instrument has been lost, stolen, illegally appropriated or used without authorization, they shall immediately inform the Bank at: or (02) from 8:30 a.m. to 5:30 p.m., Monday to Friday, excluding oofficial holidays. B. Payment Limits When Using Payment Instruments 59. Users of the Bank s Remote Banking Channels may be authorized/restricted to make payment transactions of up to a certain limit. Such limits shall be set for the relevant payment instruments in the Application for the use of the Bank s Remote Banking Channels. C. Blocking of a Payment Instrument 60. The Bank may block the use of a payment instrument for objective reasons such as: security reasons; suspected unauthorized use of a payment instrument; fraudulent use of a payment instrument; there is a significant risk that the Customer will be unable to perform their obligations to pay (where payment instruments involve lending facilities); a notification by the Customer under Art herein. 61. Should such be the case and if appropriate, The Bank shall inform the Customer either prior to or immediately after having blocked a payment instrument and shall advise them of the reasons thereof, unless provision of such information is prohibited for security reasons or in view of complying with legally imposed requirements to restrict provision of such information to the Customer. 62. The Bank shall unblock a payment instrument or replace it with a newly-issued payment instrument once the reasons of blocking cease to exist. SECTION VII. NOTIFICATION OF UNAUTHORIZED OR INCORRECTLY EXECUTED PAYMENT TRANSACTIONS 63. The Customer shall notify the Bank without undue delay immediately after they have become aware of an unauthorized or incorrectly executed payment transaction resulting in an opportunity for the Customer to exercise the Customer s rights under the PSPSA, but not later than 13 months as of the date their account had been debited. Where a Customer is not a Consumer they shall notify the Bank not later than 14 days after their account had been debited provided that the Customer proves to the Bank that the delay is due to circumstances beyond the Customer s control. The Customer shall be deemed as having become aware of an unauthorized or incorrect transaction as soon as they have received their Customer Communication relating to the respective transaction in the manner provided for in Section V above. 64. The Bank shall correct such payment transaction only if the Customer has notified the Bank in the manner provided for in Art. 63 above. SECTION VIII. LIABILITY IN THE EVENT OF UNAUTHORIZED OR INCORRECTLY EXECUTED TRANSACTIONS A. The Bank s Liability 65. In the event of an unauthorized payment transaction, the Bank shall immediately refund the value of such unauthorized payment transaction to the Customer s account and if appropriate and applicable, shall restore Customer payment account to its initial status had no unauthorized payment transaction occurred. 66. Such refund shall be effected immediately following the completion of the procedure to establish the authenticity and correct execution of a payment transaction, but not later than 21 days after receipt of Customer notification of an unauthorized or incorrect payment transaction. 67. In the event that the Customer is a natural person (i.e. Consumer) and claims that the Customer has not authorized a payment transaction or that the transaction has been executed incorrectly, the Bank shall bear the burden of proof to establish the authenticity of the transaction, its registration and booking as well as the absence of any technical errors or any other flaw affecting the transaction. Where the Customer is not a Consumer, the Customer shall bear the burden of proof. Establishing the authenticity of the transaction is a procedure enabling the Bank to check the legitimate use of the relevant payment instrument including its customized security features. The use of a payment instrument shall be regulated by the Bank s rules and procedures pertaining to the relevant payment transaction. B. Liability of Customers 68. The Customer shall bear all losses related to unauthorized payment transactions in the event the Customer has caused such transactions to be effected due to fraudulent behaviour or failure to perform one or several of their obligations as a payment instrument user, either intentionally or resulting from gross negligence. In such cases the Customer shall bear all losses regardless of their extent. 6

7 69. The Customer shall promptly notify the Bank of a loss, theft, illegal appropriation or unauthorized use of a payment instrument as soon as the Customer has become aware of such occurrence, the Customer, then, shall sustain no damages resulting from the use of such lost, stolen or misappropriated payment instrument, except in the events of fraudulent behavior on the part of the Customer. 70. The provision of Art. 65 above shall not apply and the Customer natural person (i.e. a consumer) shall sustain all losses relating to unauthorized payment transactions, resulting from the use of a lost, stolen or illegally appropriated payment instrument due to Customer s failure to protect the safety of the personalized security data of the instrument of up to maximum amount of 300 BGN. 71. In the event that a Customer, being a legal person or a sole trader (i.e. not a Consumer) claims that they have not authorized execution of a payment transaction or a transaction has not been executed correctly, the Customer shall be obliged to prove that the transaction in question has not been authorized and/or executed correctly by the Bank. 72. The provision of Art. 65 above shall not apply and the Customer legal person or a sole trader (i.e. not a consumer) shall sustain all losses relating to all unauthorized payment transactions, resulting from the use of a lost, stolen or illegally appropriated payment instrument due to Customer s failure to protect the safety of the personalized security data of the instrument regardless of their amount. In such case the Bank shall not be held liable for any unauthorized payment transactions. SECTION IX. LIABILTY OF THE BANK IN EXECUTING PAYMENT TRANSACTIONS A. Transferred and received funds via payment orders 73. The Bank shall transfer the full amount stated in a payment order and no fees shall be withheld from them. The Bank shall not make partial transfers under separate payment orders or direct debit requests. 74. Prior to crediting the account of a payee Customer, The Bank, in their capacity of a payee s bank, may withhold from such amounts all fees due by the Customer as set forth in the Bank s Fees and Commissions Tariff. Should such be the case, the communication to the Customer shall contain a breakdown stating the value of a payment transaction separately from the fees withheld by the Bank. B. Incorrect Unique Identifier (IBAN) 75. Where a payment order is executed in accordance with the unique identifier stated, such payment order shall be deemed as correctly executed as regards the payee identified by such unique identifier. 76. The Bank shall not be liable for having failed to execute or having incorrectly executed a payment transaction containing an incorrect unique identifier. 77. Should such be the case as stated in item 76 above, the Bank shall take proper care and make efforts to restore amounts transferred under incorrect payment transaction. The Bank may charge additional fees for such refunds, if the Bank s Fees and Commissions Tariff requires so. 78. Upon failure to execute a payment transaction due to incorrect unique identifier, The Bank, acting as Payer s bank shall restore the amount thus transferred to the account of the Customer on the following business day. C. Liability of the Bank arising from failure to execute and incorrectly execute a payment transaction ordered by the Customer as Payer 79. Where a Customer submits a payment order with the Bank as a payer, the Bank shall be liable to the consumer Customer for the precise execution of such payment transaction, unless the Bank proves to the Customer or to the payee s bank that payee s bank has received the payment order amount within the deadlines set forth in applicable law. Should such be the case, payee s bank shall be liable to payee for the precise execution of the payment order and shall immediately make available to payee such amounts and when applicable, credit payee s payment account with the respective amount. 80. In the event of failure to execute and/or incorrect execution of a payment transaction requested by the Customer as a payer, the Bank shall upon request undertake steps with the proper care to track such payment transaction and inform the Customer of the results thereof. D. Liability of the Bank arising from failure to execute and incorrectly execute payment transactions ordered by the Customer as Payee. 81. Where a payment order is submitted by or through the Customer as a payee, the Bank shall be liable to the Customer for the proper submission of payment orders to payer s bank within a timeframe allowing for the settlement to take place on a pre-arranged date. Should such be the case, the Bank shall immediately submit the payment order to payer s bank. 82. The Bank shall be liable to the payee Customer for the execution of the payment transaction and makes available to the Customer the payment transaction amount immediately following the crediting of their account with such amount. 83. In the event of failure to execute or incorrect execution of a payment transaction, as ordered by a payee Customer, the Bank upon request shall undertake steps with the proper care to track the payment transaction and shall notify payee of the results thereof. E. Liability to reimburse fees and interests 84. Where a Customer is a natural person (i.e. Consumer), the Bank shall be liable to reimburse all fees collected from the Customer (i.e. Consumer) as well as reimburse all interests the Customer may have been charged as a result of failure to execute or incorrect execution of a payment transraction. For the purposes of this article, where the Bank has refused to execute a payment order such order shall be deemed not received. The provisions of this article shall not apply to Customers that are legal entities or sole traders (i.e., are not Consumers). 85. The Customer shall also be entitled to indemnity to the full amount of damages sustained by them in accordance with the applicable Bulgarian law. F. Discharge 86. The Bank shall not be liable under this Section IX in the event of force majeure, extraordinary and unexpected circumstances beyond the control of the Bank whose consequences would inevitably occur, regardless of all efforts that would have been taken to prevent them as well as all cases where the Bank undertakes steps to perform in compliance with legally established obligations pursuant to EU laws or the laws of Republic of Bulgaria. G. Reimbursement of funds under a payment transaction initiated by or through payee 87. Where the Customer is a natural person (i.e., Consumer) and acting as Payer, they shall be entitled to request the Bank to reimburse the whole amount of a payment transaction already executed and authorized provided such transaction has been ordered by or through a payee when the following requirement are met: 1/ the exact amount of the payment transaction has not been specified as of the moment of its authorization and 2/ the value of the payment transaction exceeds the value expected by the Customer in view of previous similar transaction costs, the provisions of these General Terms and Conditions and other specific circumstances relating to the particular case. 88. The Customer shall request such refunds from the Bank within 56 days from the date on which their bank account is debited. 89. Upon request sent by the Bank, the Customer shall present evidence of the existence of the circumstances mentioned in art. 87 above. 7