Standard terms and conditions
Conditions for operating your Bank of New Zealand bank account.
This document contains the standard terms and conditions ("Terms") for operating your bank accounts with Bank of New Zealand ("Bank"). Please take the time to read this document carefully.
1. Standard terms and conditions
These Terms apply to all Bank accounts, whether existing or future, operated or to be operated by you (whether solely or with others) unless any specific terms and conditions applicable to an account provide otherwise. These Terms replace the general terms previously applying in respect of your accounts, but do not apply to any product offered by any related company of the Bank such as unit trusts, superannuation and insurance.
By operating any of your accounts with the Bank you acknowledge that you accept these Terms.
Relationship with specific terms and conditions
The terms and conditions of any loan facility (including an overdraft) on an account and these Terms are separate contracts. The terms and conditions of the facility apply, in addition to these Terms, when the account is used to borrow money under the facility. Otherwise, these Terms are to be read in conjunction with the specific terms and conditions of any account or service provided with an account.
If there is a conflict between any specific terms and conditions and these Terms then the specific terms and conditions will prevail.
Applicable law and jurisdiction
Your accounts, your banker/customer relationship with the Bank and these Terms are governed by New Zealand law and the New Zealand courts shall have jurisdiction to hear and determine disputes in respect of these Terms.
2. Account operating
Verification of identity
The Bank may from time to time require proof, to its satisfaction, of your identity and certain other personal information in relation to any beneficial owner of you and any person acting on behalf (including, without limitation, any person authorised to operate your account(s).
Instructing the bank
The Bank may in its discretion and subject to conditions allow you to give instructions in respect of any of your accounts by cheque, telephone, facsimile, email, text, card or computer or by any other written, electronically communicated or verbal method acceptable to the Bank (each a "facility"). The Bank may require you to provide a written indemnity before making any such facility available to you. Except as otherwise required by law, the Bank may give effect to operations on an account authorised by a deceased person prior to his or her death.
Any person you wish to authorise to instruct the Bank in writing in respect of your accounts must be listed on the Bank's form entitled "Account Operating Authority" and must provide the Bank with a specimen signature. You may be required to use the Bank's standard forms (which are available at Bank branches) when instructing it.
Except as provided in the specific terms and conditions of any account, an account may be operated by deposits, withdrawals, transfers, direct credits, direct debits, automatic payments or any other type of payment authority acceptable to the Bank. Specific terms and conditions may apply.
3. Authority to the bank
You authorise the Bank to act in accordance with your instructions relating to each account. You acknowledge that the Bank may decline to so act where the Bank considers it has good reason to do so. In particular, unless you have an arrangement with the Bank, the Bank will not be obliged to act in accordance with your instructions where to do so would result in an account becoming overdrawn.
Set off and combination
You authorise the Bank at any time and without notice, to combine the balance of one of your accounts with the balance of another of your accounts, so as to treat them as a single balance, and there will be no implied agreement to the contrary. If you owe any money to the Bank which is due but unpaid, whether it is owed alone or with others, you authorise the Bank, without prior notice, to apply any credit balance in any account, or any other amount the Bank owes to you, towards that unpaid amount. For this purpose you authorise the Bank to transfer funds from one account to another (including any joint account which you can operate individually), to use funds in one currency to buy another currency and to break any term deposit. The Bank may do this without prior notice and in the order, and as often, as the Bank determines.
You authorise the Bank to record any telephone calls between you and the Bank and to retain such recordings.
The Bank may agree that in certain circumstances you may authorise one or more persons individually to operate your account(s) at the "transaction" and "enquiry" access levels set out in the Account Operating Authority. You must ensure that any authorised person operates each relevant account in a proper manner.
4. Changes to standard terms and conditions
These Terms 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, by public notice or by display in all Bank branches. In addition changes will be displayed on our website.
5. General terms and conditions
Reasonable care and skill
The Bank will provide its services with reasonable care and skill.
An account balance may be altered by reversal of any unpaid cheque or other non-cash payment included in a deposit.
Ownership of funds
Unless you instruct the Bank otherwise in writing, you acknowledge that you are solely entitled to the funds in your accounts, that they belong to you and do not belong to any other person and that no other person has any legal or beneficial interest in them.
The Bank may, in it's absolute discretion, refuse to accept for collection or payment cheques which do not comply with current banking standards applied by the Bank.
When you wish to stop a cheque or other payment you must notify the Bank which will advise you of any further requirements.
Deposits instructed to be applied for specific purposes
The Bank is not obliged to act on or verify compliance with an instruction to apply a deposit for a specific purpose or subject to any condition and the Bank will not be responsible for applying a deposit contrary to any instruction.
Fees and charges
The Bank may, from time to time, impose and modify fees and charges for services provided in connection with any accounts. The Bank will, from time to time, debit your accounts with all fees and charges that are payable in respect of your accounts and any services provided to you by the Bank. The Bank may also, from time to time, debit your accounts with any governmental fees or charges, recovery costs and any other amount owed to the Bank by you. The Bank will keep you advised of fees and charges in accordance with the Code of Banking Practice.
You must pay, on demand, any costs associated with collection or attempted collection of amounts overdue on any account (including collections agent's costs and legal fees on a solicitor/own client basis).
Unless you have supplied the Bank with a copy of your current certificate of exemption, the Bank will deduct withholding tax from any interest credited or paid to you. If your IRD number has not been supplied, this deduction may have to be made at a higher rate than might otherwise apply. For non-residents the Bank may, in its discretion, elect to pay to the Inland Revenue Department a non-resident approved issuer levy instead of deducting non-resident withholding tax. In this case, the amount of the non-resident approved issuer levy will be deducted from any interest credited or paid to you. You should immediately notify the Bank of any change in your personal tax rate or your tax residence status.
Use and return of forms
Cheque forms and other forms encoded by the Bank with an account number must not be used to access or operate any other account. Where you would be entitled to the return of any form, the Bank may at its discretion provide you with a copy instead of the actual form.
The Bank may determine the order of priority of payments from any account.
If the Bank receives or holds any property, items or documents for you for any purpose it may, in its discretion, exercise a lien over the property, item or document as security for any amount you owe to the Bank (whether alone or with any other persons) under any account.
Rights to your accounts
You may not assign, mortgage, charge or declare a trust of any rights to your accounts, including any credit balances, without the prior written consent of the Bank.
Suspension or closure of accounts
You may close an account at any time, subject to any specific terms and conditions of that account. The Bank may close an account at any time, provided reasonable notice in the circumstances has been given. The Bank may also suspend the operation of an account or close it without prior notice if:
- It learns of your death, bankruptcy or any other lack of legal capacity or that you have committed an act of bankruptcy, or that a petition has been presented for your bankruptcy, or that you have applied for or are subject to any personal insolvency procedure or proceedings under the Insolvency Act 2006;
- There are insufficient funds (including funds available under any overdraft, or other loan, facility on that account) to meet debits from the account;
- any third party claims an interest in your account which the Bank considers may be justifiable, pending resolution of the matter;
- you breach these Terms or the terms and conditions of any overdraft, or other loan, facility; or
- It considers that there are other reasonable grounds to do so (in which case all reasonable efforts will be made to notify you of the circumstances of closure or suspension), and you must reimburse the Bank for any expense which it incurs in connection with any of these matters. If your account is suspended or closed, it is your responsibility to make other arrangements for the payment of any automatic payment, direct debit or other payment from that account.
6. Your responsibility
- Check your statements to ensure their accuracy and promptly advise the Bank of any error or discrepancy or unauthorised transaction;
- Notify the Bank of any alteration to a payment authority and of any change of name or address; and
- Comply with the specific terms and conditions of any account or facility provided on an account.
It is your responsibility to ensure that you have sufficient funds in an account (including funds available under any overdraft, or other loan, facility on that account) to meet debits from that account. If there are insufficient funds available to meet debits from an account (including funds available under any overdraft, or other loan, facility on the account), these may be paid, or not paid, at the Bank's discretion.
Password or PIN
Where you are able to access an account by password or PIN, you will be responsible for keeping your password or PIN secure. In particular, you must:
- Not keep a written record of your password or PIN
- Not keep your password or PIN in a form that can be readily identified as a password or PIN
- Not select a PIN that consists of any readily accessible personal data such as your birth date, telephone number, driver's licence, licence plate or passport nor must it be an obvious number or combination of numbers
- Not voluntarily disclose your password or PIN to any other person
- not allow another person to see your PIN when you enter it or it is displayed and you must make sure it is not retained on any device
- Not negligently or recklessly disclose your password or PIN
- Notify the Bank immediately if you become aware that your password or PIN has become known to someone else
- Ensure authorised signatories and limited users who are able to access any of your accounts by password or PIN keep their password or PIN secure as set out above
- Have a PIN, if your card has chip technology
7. The bank's position
Assumptions as to instructions
Subject to complying with its duty to exercise reasonable care and skill and other obligations under the Consumer Guarantees Act 1993, but otherwise irrespective of anything else stated in these Terms. The Bank:
- May decline to act or delay acting on any instructions given where it considers that it has good reason to do so
- May, where your account can be accessed by telephone or by any electronic means, assume that any telephone or electronic instructions received using your password or PIN are authorised by you
The following paragraph applies subject to and provided the Bank has complied with its duty to act with reasonable care and skill and its other obligations under the Consumer Guarantees Act 1993. The Bank:
- Will not be liable for any claim that arises from acting reasonably in accordance with your instructions
- Will not be liable for any loss suffered by you or any third party due to matters outside the Bank's control (including, without limitation, machine failure, system failure or strikes)
- accepts no liability for the loss or destruction of, or delay in processing, cheques or other instructions or documents
- Accepts no liability (except interest for the period of the delay) for any delay in transferring funds to or from your accounts
Will not be liable for either refusing to act on contradictory instructions given in respect of any account or for acting on any one only of such contradictory instructions
8. Consumer Guarantees Act 1993
Guarantees as to service
The Consumer Guarantees Act 1993 overrides the provisions of these Terms and, except as set out in the following paragraph you are entitled to the benefit of the guarantees as to service set out in the Consumer Guarantees Act 1993.
Does not apply to businesses
If you acquire, or hold yourself out as acquiring, accounts, facilities or other services from the Bank for the purposes of a business then the Consumer Guarantees Act 1993 will not apply to the accounts, facilities or other services provided.
- The Bank will comply with the Code of Banking Practice, as it applies to these Terms.
- The operation of your accounts and these Terms may be affected by over-riding laws of general application.
- Headings in these Terms do not affect interpretation.
10. Terms and conditions specific to joint accounts
The additional specific terms and conditions in this clause 10 apply to each joint account.
Where you are a party to a joint account and the Bank receives a deposit (whether by cheque, draft, bill of exchange or other instrument or payment authority) in your favour, the Bank may credit it to your joint account, unless instructed in writing to pay it into a separate account in your name.
Operating joint account
Unless you have otherwise specified in writing, any one of you may instruct the Bank to act in respect of your joint account.
Features of joint account
Your attention is drawn to the following features of joint accounts:
- Any one joint account holder can operate the joint account separately, unless all account holders have given the Bank written instructions to the contrary. This means that any one of the joint account holders may withdraw all of the money credited to the joint account or incur the maximum debt allowed against the account.
- If any joint account holder dies, the remaining account holder(s) automatically become(s) the owner(s) of all funds in the joint account and have full authority to operate the account. The Bank will treat any credit balance in the joint account as payable and belonging to the surviving joint account holder(s) and the Bank will incur no liability in paying or delivering such funds to such person(s).
- Each joint account holder is jointly and individually liable for the whole of the amount owing to the Bank in respect of a joint account. This means that the Bank can require each joint account holder to pay either a part or all of such amount. If you or the other joint account holder(s) die, any liability to the Bank will not be discharged as a result of that death.
- Any notice given to one joint account holder is deemed to be sufficient notice to all joint account holders.
Suspension or closure of joint account
The Bank may suspend the operation of or close a joint account without prior notice if:
- There is any dispute between any of the joint account holders and this has not been resolved (to the Bank's satisfaction)
- One joint account holder attempts to withdraw or notifies the Bank of his or her intention to withdraw from the joint account
- The Bank learns that any joint account holder has committed an act of bankruptcy or been declared bankrupt or that a petition has been presented to declare any joint account holder bankrupt, or that any joint account holder has applied for or is subject to any personal insolvency procedure or proceedings under the Insolvency Act 2006
- Any joint account holder purports to assign or dispose of his or her interest in the joint account
In such case:
- Each joint account holder prior to suspension or closure of the account will continue to be jointly and individually liable for any outstanding debt
- the Bank will not be liable to any joint account holder for any consequences of the Suspension or closure of the joint account. The Bank will not be liable to any joint account holder if it does not suspend or close a joint account when it could have done so
When jointly owned assets are provided as security for borrowing, independent legal advice should be sought about individual liability for debts incurred now and in the future and the implications of this for the assets given as security.
If a dispute occurs between you as joint account holders you must advise the Bank immediately and you should seek independent legal advice.
Closure of joint accounts
Unless you have specified that two or more signatories are required to operate your joint account, your joint account may be closed by any one of you so instructing the Bank. In such a case, the Bank will not be liable to the other joint account holder(s) for any consequences arising from the closure.
11. Terms and conditions specific to partnership accounts
The additional specific terms and conditions in this clause 11 apply to each partnership account.
There is an implied warranty that all partners in the partnership have authorised the account to be opened and operated in terms of the Account Operating Authority and all terms and conditions applicable to the account and that such opening and operation complies with the relevant provisions of the partnership contract.
Every partner as at the date on which the partnership account is opened, and every person who thereafter joins the partnership as a partner, agrees or on joining will be deemed to agree to be bound by these Terms and the Account Operating Authority.
Where the Bank receives a deposit (whether by cheque, draft, bill of exchange or other instrument or payment authority) in favour of any one or more of the partnership's partners, the Bank may credit it to the partnership account, unless instructed in writing to pay it into another account.
All partners will be jointly and individually liable for all amounts owing on a partnership account and for the performance of all obligations imposed under these Terms or general law in relation to the partnership account, provided that the liability of a limited partner in a limited partnership will, subject to sections 30 and 31 of the Limited Partnerships Act 2008, not exceed that partner's liability under the partnership agreement for that partnership.
Operating partnership accounts
The authorised signatories and limited users operating in accordance with the terms of the Account Operating Authority may conduct a partnership account as fully and freely as all partners to the partnership could if they all acted jointly, and the partners all undertake to ratify and confirm all transactions undertaken in conformity with such authority. If the Bank receives contradictory instructions from any persons authorised to operate a partnership account the Bank may refuse to act on any or all such instructions or may act on any one of such instructions.
Alteration of partnership
The Bank must be immediately notified in writing should there be any alteration in the composition of the partnership. Until such notice is received the Bank may treat the partnership for all purposes as continuing unchanged. A former partner will remain jointly and individually liable in respect of the partnership account until released by the Bank in writing.
12. Terms and conditions specific to estate and trustee accounts
The additional specific terms and conditions in this clause 12 apply to each estate or trust account.
There is an implied warranty that all trustees, executors and administrators have authorised the account to be opened and operated in terms of the Account Operating Authority and all terms and conditions applicable to the account and that such opening and operation of the account comply with the relevant provisions of the trust deed, will or other authority.
Every trustee/executor/administrator as at the date on which the account is opened, and every person who is thereafter appointed as such, agrees or on being appointed will be deemed to agree to be bound by these terms and the Account Operating Authority.
All trustees of any trust or all executors or administrators of any estate holding an account shall have joint and individual liability to the Bank for any amount owing on the account and for the performance of all obligations imposed under these Terms or the general law in relation to the account.
Operating trust accounts
The authorised signatories and limited users operating in accordance with the terms of the Account Operating Authority may conduct an estate or trustee account as fully and freely as all trustees/ executors/ administrators could if they all acted jointly. All trustees/executors/administrators to the estate or trustee account undertake to ratify and confirm all transactions undertaken in conformity with these instructions. If the Bank receives contradictory instructions from any persons authorised to operate a trustee account the Bank may refuse to act on any or all such instructions or may act on any one of such contradictory instructions.
Changes in trust or estate
The Bank must be immediately notified in writing of the resignation or appointment of any trustees, executors or administrators and ensure that any such person(s) appointed agree(s) to be bound by these terms and the Account Operating Authority. Until released by the Bank in writing the liability of a trustee, executor or administrator in respect of a trust or an estate account shall remain.
13. Terms and conditions specific to accounts with cheque access
The additional specific terms and conditions in this clause 13 apply to each account with cheque access.
The Bank may mail a cheque book to you at the most recent address noted on its records. Government stamp duty is payable on cheques and will be debited from your account.
It is your responsibility to keep your cheque book safe. The loss of your cheque book or any cheque(s) should be reported to the Bank immediately.
There are different legal consequences of crossing cheques in different ways. If you are in doubt about these you should ask the Bank for details.
Instructions as to special purpose
The Bank is not obliged to verify compliance with any notice or instruction to apply the proceeds of a cheque for a specific purpose or subject to any condition.
The Bank may refuse to pay out on a cheque in its reasonable discretion (including without limitation where the cheque has been incorrectly completed, not signed in terms of the Account Operating Authority.) Dishonour fees may also be debited to the account.
Post dated and stale cheques
Cheques presented before the date of the cheque or more than six months after the date of the cheque may be dishonoured.
If you provide the Bank with a written request to stop payment on a cheque issued on your account, the Bank will make reasonable efforts to stop payment on that cheque. It will, however, not be liable if payment on a cheque is not prevented. Charges may apply.
Alteration of a cheque
Alterations increasing the amount payable on a cheque must have the drawer's full signature next to the alteration, in accordance with the relevant Account Operating Authority. All other alterations must be initialled by the drawer in accordance with the relevant Account Operating Authority.
Closure of account
If an account is closed, you must return all of your unused cheques and any debit or credit cards relating to that account to the Bank. Government stamp duty may be refundable on receipt of any unused cheques.
14. Information about you
Information about you which, at any time, you provide to the Bank or is collected by the Bank or any related company (as defined in section 2(3) of the Companies Act 1993 as if "company" includes a company or other body corporate incorporated in New Zealand or any other jurisdiction) of the Bank (each a BNZ Company) may be stored, used or disclosed in accordance with this clause 14. Each BNZ Company may rely on this clause 14 pursuant to the Contracts (Privity) Act 1982.
Storage of information
Information about you may be stored physically or electronically, including in offshore facilities, by the Bank, any other BNZ Company or any third party (who is subject to an obligation of confidentiality in relation to that information) contracted to store it.
Each BNZ Company will ensure that any information held about you is protected securely by safeguards as required by the Privacy Act 1993 and any other applicable laws. No BNZ Company will disclose information about you to any person, except in connection with a purpose described below, or as authorised by you or as required or authorised by law.
Use and disclosure of information
Information about you will be used primarily for administering your accounts, data processing, data analytics, credit, risk or prudential management and offering or providing banking and other financial services to you. Information may be disclosed to another BNZ Company or a third party in connection with any of these purposes provided the recipient of the information is subject to an obligation of confidentiality in relation to that information.
Information may also be used to further the relationship between you and any BNZ Company and for marketing purposes. This includes, without limitation, communicating with you via email, text message, an on-line facility (without an unsubscribe facility), telephone or post about any products, services or promotions offered or distributed by any BNZ Company.
To seek your views on its services and the products it offers, the BNZ Company may provide your name, address and telephone number to reputable market research organisations. The information is selected at random and places you under no obligation to take part in the market research. The information is supplied in strict confidence to the research organisation, which will not be authorised to use it for any other purpose.
However, if you do not wish to be involved, please advise us.
In respect of opening accounts, loan applications and reviews, you authorise the BNZ Company to make credit references and other enquiries within its normal procedures. For this purpose, the BNZ Company may seek from any such source information concerning you.
You also authorise the collection and disclosure of all information relevant to your accounts from/to any credit reporting agency. Credit reporting agencies may use information disclosed by the BNZ Company to update their credit reporting database, and disclose any information that they hold about you to their own customers as permitted under the Credit Reporting Privacy Code. In addition, the BNZ Company may use any service provided by its credit reporting agencies to receive updates of the information it holds about you.
In the event that you are in default under any loan or facility from the BNZ Company, the BNZ Company is authorised to disclose all relevant information about you, to and for the use by, credit reporting agencies, debt collection agencies and law firms.
Access and correction
Pursuant to the Privacy Act 1993 and other applicable laws, if you are an individual, you have rights to see and request correction of personal information about you held by the BNZ Company.
Please tell us
If you do not wish to provide all the information requested on an application form, then please tell the Banker dealing with you. If you do not provide all the information requested on the application form, the Bank may restrict the products, facilities and/or services available to you.
To obtain more information about how we manage information about you, or if you would like a copy of our relevant privacy policies, please contact 0800 ASK BNZ (275 269).