Temporary overdraft facility
This disclosure statement under the Credit Contracts and Consumer Finance Act 2003 is to be read in conjunction with any letter you receive from the Bank in connection with a temporary overdraft facility granted to you and the Temporary Overdraft Facility Terms and Conditions.
A continuing disclosure statement relating to the temporary overdraft facility will be sent to you immediately following the end of each statement period that occurs up to and including the Expiry Date. The statement will describe the balance, each advance, each payment made by you, and any interest or fees charged during the statement period.
You will make payments to ensure that the Account Balance does not exceed the Credit Limit.
Method of charging interest: Interest charges are calculated by multiplying the moneys outstanding at the end of the day by the daily interest rate applying to each portion of the moneys outstanding. The daily interest rate is calculated by dividing the Annual Interest Rate by 365. Interest will be calculated on the second to last business day of the month and be debited to the Account on the last business day of the month. A minimum debit interest charge applies (see Credit Fees and Charges below).
Credit fees and charges
The following credit fee(s) and charges are, or may become, payable under the Temporary Overdraft Facility Terms and Conditions:
- A minimum debit interest charge of $1 per month applies.
- The other fees and premiums set out in the Overdraft Establishment Fee and Unarranged Overdraft Fee section of the Personal Account, Service and Facility Fees Brochure (which forms part of this Disclosure Statement).
The following charges are, or may become, payable under the Account terms and conditions in connection with the overdraft facility:
- The fees and premiums set out in the Account Fees and Service Fees sections of the Personal Account, Service and Facility Fees Brochure.
- All legal and other costs charges and expenses which the Bank may pay or incur in connection with the temporary overdraft facility.
The Bank may at any time vary the rate, amount or terms of payment of each fee or introduce a new fee or charge provided that prior to such alteration or introduction notice shall be given to you by way of public notice, press release or as otherwise authorised by law.
The temporary overdraft facility will be fully secured by any all obligations security interest you have granted, or may in the future grant, to the Bank. Details of the security interests held by the Bank have been, or in the case of new security interests will be, disclosed to you.
What could happen if you fail to meet your commitments
- A fee may be payable to compensate the Bank for a reasonable estimate of any loss incurred by the Bank in the event of your default under the temporary overdraft facility;
- A charge may be payable to compensate the Bank for any costs the Bank incurs in recovering any money under the temporary overdraft facility in the event of your default under the facility.
Default interest charges:
Any amount not paid when due will incur default interest at a per annum rate which is 10% greater than the Annual Interest Rate. If you fail to pay any amount to the Bank when it falls due, the Bank may charge you interest at the default interest rate on a daily basis on the overdue amount, calculated from the date that amount became due until the date it is actually paid. Such interest will be immediately due and payable.
Temporary overdraft facility terms and conditions
Parts 2 and 3 of the Credit Contracts and Consumer Finance Act 2003 only apply to the temporary overdraft facility if you are an individual and, at the time the facility is granted to you, you have requested the facility primarily for personal, domestic or household purposes.
These Temporary Overdraft Facility Terms and Conditions, the terms and conditions of your Account and any other agreements between you and the Bank are separate contracts unless the Bank specifies otherwise. These Temporary Overdraft Facility Terms and Conditions apply, in addition to the Account terms and conditions. When you use your temporary overdraft facility you agree to these terms and conditions.
Temporary Overdraft Facility
If the Bank agrees, you may use the Account to borrow money on overdraft. The maximum amount of credit available under the temporary overdraft facility on the Account and outstanding at any one time shall NOT exceed the Credit Limit (specified in the Bank's letter forming part of the disclosure statement) or such other amount as notified to you by the Bank from time to time. If for any reason there are insufficient funds available to meet debits to the Account, debits may be paid, or not paid, at the Bank's discretion.
Debit Interest Rate
Debit interest shall be payable by you to the Bank on the debit balance of the temporary overdraft facility at the Bank's current debit interest rate applying from time to time to that facility. Debit interest will be calculated on the second to last business day of each month and debited to the Account on the last business day of the month. If the Account is in debit when any interest is debited, then such interest shall be capitalised and form part of the temporary overdraft facility and bear interest in accordance with these Temporary Overdraft Facility Terms and Conditions.
Until the Bank notifies you to the contrary, the rates of interest for the purposes of this clause shall be as specified in the Bank's letter forming part of the disclosure statement.
Repayment on Demand and Reduction of Overdraft Limit
The temporary overdraft is repayable on demand at any time as requested by the Bank and at its absolute discretion the Bank may reduce or cancel the Credit Limit upon giving such notice to you as it deems appropriate in the circumstances.
On demand you will pay to the Bank at the address of the Bank where the Account is held all monies, which may now or hereafter be owing or unpaid under these Temporary Overdraft Facility Terms and Conditions, including but not limited to:
- Fees and premiums set out in the Overdraft Establishment Fee and Unarranged Overdraft Fee section of the Personal Account, Service and Facility Fees Brochure, all of which are subject to amendment from time to time at the Bank's discretion
- All legal and other costs, charges and expenses which the Bank may pay or incur in connection with these Temporary Overdraft Facility Terms and Conditions or the recovery of any monies owing hereunder
- A fee to compensate the Bank for a reasonable estimate of any loss incurred by the Bank as a result of your default
- All outstanding interest on all such monies calculated until the time of payment.
Default interest charges payable under these Temporary Overdraft Facility Terms and Conditions will be charged to the Account.
Charges for keeping accounts, activity fees, base fees, honour/dishonour fees and other fees may be payable under the Account terms and conditions.
The Bank will credit payments to the Account as soon as practicable after the Bank receives them. This is not necessarily the same day as you pay. The Bank may subsequently adjust debits and credits so as to accurately reflect the legal obligations of the Bank and you (for example, because of an error, or because a cheque is dishonoured). If the Bank does this, the Bank may make consequential changes (including to interest charges).
Where you have consented to the Bank satisfying its disclosure requirements or the Bank providing you with continuing disclosure information under the Credit Contracts and Consumer Finance Act 2003 in electronic form you acknowledge that this may include communication via the Bank's website, email or electronic communication to an email address specified by you for that purpose. Please note that emails are transmitted over the internet which is an insecure public domain and subject to risk including unlawful interception, corruption, non-delivery or mis-delivery.
Changes to terms and conditions
These Temporary Overdraft Facility Terms and Conditions will continue to apply until the Bank gives you notice of any changes to them. Notice of any changes will be given to you a reasonable period before the changes become effective, either at your most recent address as shown on the Bank's records or by public notice.
Consumer Guarantees Act 1993
The Consumer Guarantees Act 1993 overrides the provisions of these Temporary Overdraft Facility Terms and Conditions and, except as set out in the following sentence you are entitled to the benefit of the guarantees as to service set out in the Consumer Guarantees Act 1993. If you acquire, or hold yourself out as acquiring, an overdraft facility for the purposes of a business then the Consumer Guarantees Act 1993 will not apply to the temporary overdraft facility.
The Bank will comply with the Code of Banking Practice, as it applies to these Temporary Overdraft Facility Terms and Conditions.
These Temporary Overdraft Facility Terms and Conditions may be affected by over-riding laws of general application.
Headings in these Temporary Overdraft Facility Terms and Conditions do not affect interpretation.
Applicable law and jurisdiction
These Temporary Overdraft Facility Terms and Conditions are governed by New Zealand law and the New Zealand courts shall have jurisdiction to hear and determine disputes in respect of these Temporary Overdraft Facility Terms and Conditions.
Bank of New Zealand's current Reserve Bank disclosure statement may be obtained from any branch or agent of Bank of New Zealand.