quirin bank

Basic rules for the relationship between the customer and the bank

1. Scope of application and changes to these Terms and Conditions as well as the Special Conditions for individual business relationships

(1) Scope of application
The General Terms and Conditions apply to all business relationships between the customer and the German branches of the quirin bank AG (hereinafter referred to as bank). In addition, Special Conditions apply to individual business relationships (such as securities business, payments by card, cheques, savings, transactions). These Special Conditions include variations or amendments to these General Terms and Conditions and will be agreed with the customer when opening an account or placing an order. When the customer also has business relationships with foreign branches, the lien of the bank (no. 14 of these Terms and Conditions) guarantees the claims of these foreign branches as well.

(2) Changes
The customer will be informed in writing about changes to these Terms and Conditions and Special Conditions. When an electronic form of communication has been agreed in the business relationship between the customer and the bank (e.g. home banking), the customer can also be informed about changes using this form of communication, if it allows the customer to save or print the changes in readable form. They will be deemed accepted if the customer does not object in writing or using the agreed electronic for of communication. The customer will be specifically informed about this by the bank upon notification. The customer has to send an objection to the bank within six weeks of notification of changes.

2. Bank secret and credit rating

(1) Bank secret
The bank is bound to secrecy with regards to all customer related facts and assessments which come to the attention of the bank (bank secret). The bank is only allowed to forward information about the customer when required by legal regulations or with the customer's consent or when the bank is authorised to provide a credit rating.

(2) Credit rating
A credit rating includes general statements and remarks on the customer's economic situation, his credit standing and solvency; no information about account statements, savings amounts, portfolio- or other assets entrusted to the bank and information on accessed loan amounts will be revealed.

(3) Requirements for providing a credit rating
The bank is authorised to provide credit ratings about entities and companies listed in the commercial register, as long as such credit rating is related to its business activities. However, the bank does not provide information when otherwise instructed by the customer. The bank will only provide credit ratings about other people, especially about private customers and associations when they have approved in general or specifically for a certain case. Credit ratings are only provided when the person making the request has credibly described a rightful interest in the desired information and when there is no reason to suspect that the customer's issues to be protected oppose revealing the information.

(4) Recipient of credit ratings
The bank only provides credit ratings to its own customers and other credit institutes for their purposes or that of their customers.

3. Liability of the bank; contributory negligence of the customer

(1) Liability principles
When completing its obligations, the bank is liable for any negligence of its employees and the persons whose services were used for completing its obligations. When different provisions have been made in the Special Conditions for individual business relationships or other regulations, such regulations shall apply. When the customer has contributed to the damage through negligence (for example by violating his obligations to participate as described in No. 11 of these Terms and Conditions), the principles of contributory negligence shall determine to what extent the bank and the customer are liable for the damage.

(2) Subcontracts
When the content of a contract is usually completed in a way that the bank subcontracts it to a third party, the bank completes the contract by subcontracting it to a third party in its own name (subcontract). For example, this applies to obtaining credit ratings at other credit institutes or to storing and administering securities abroad. In these cases, the bank's liability is limited to the careful selection and instruction of third parties.

(3) Disruption of business operations
The bank is not liable for damages as a result of higher force, turmoil, acts of war, natural disasters or other events beyond its control (such as strikes, lockouts, traffic disruptions, orders of higher authority in Germany or abroad).

4. Limits of customer's offset right
The customer can only offset claims by the bank when such claims are undisputed or legally determined.

5. Power of disposition after customer's death
After the customer's death, the bank can request a certificate of inheritance, grant of probate or other required documentation; a German translation of documents in other languages must be provided upon request by the bank. The bank can decide not to request a certificate of inheritance or a grant of probate when the original or a certified copy of the last will (testament, contract of inheritance) and the according opening protocol are presented to the bank. The bank is authorised to consider the person mentioned in this document as heir or executor of the will as the beneficiary, to let this person dispose of the matters of the deceased and especially settle with discharging effect. This regulation does not apply when it is known to the bank that the person mentioned within (for example after challenging the will or due to invalidity of the will) is not authorised to dispose of the matters of the deceased or when the bank has not learned this due to negligence.

6. Applicable law and place of jurisdiction for commercial and public law customers

(1) Applicability of German law
German law applies to business relationships between the customer and the bank.

(2) Place of jurisdiction for domestic customers
For commercial customers: if the disputed business relationship can be attributed to the customer's commercial operation, the bank can sue this customer at the competent court for the place where the account is being held or at another competent court; the same applies to public law entities and for public law special assets. The bank itself can only be sued by these customers at the competent court for the place where the account is being held.

(3) Place of jurisdiction for international customers
The regulation on the place of jurisdiction also applies to international customers who pursue similar commercial operations abroad, as well as for international institutions that are comparable to domestic public law entities or to domestic public law special assets. Account management

7. Account statements for current accounts (running accounts); authorisation of debits from direct debits

(1) Provision of account statements
For a current account, the bank provides account statements every three months, if not otherwise agreed; the claims on each side for this time period (including interest and bank fees) will be settled in the statement. In accordance with No. 12 of these Terms and Conditions or with other agreements reached with the customer, the bank can charge interest on the balance from the account statement

(2) Time for objection; acceptance through silence
The customer has to make an objection due to incorrectness or incompleteness of an account statement by the latest within six weeks after receiving the statement; if such objection is made in writing, posting it within six weeks is sufficient. If no objection is made within this timeframe, the statement is deemed accepted. The bank will specifically point out this consequence when providing an account statement. The customer can demand correction of the account statement after the six week timeframe, but in this case has to prove that his account was unfairly debited or that a credit he was entitled to has not been made.

(3) Authorisation of debits from direct debits
When the customer has not yet authorised a debit transaction from a direct debit for which he has provided a direct debiting authorisation to the creditor, then he has to submit his objection against this direct debit included in the balance of the next account statement no later than six weeks after receiving such account statement. If he submits such objection in writing, posting it within six weeks is sufficient. If no objection is made within this timeframe, the direct debit is deemed accepted. The bank will specifically point out this consequence when providing an account statement.

8. Negative bookings and adjustments by the bank

(1) Before account statement
The bank is entitled to reverse incorrect credits on current accounts (for example due to a wrong account number) through an adjustment, as long as the bank has the right to a repayment claim against the customer (negative booking); in this case, the customer can not object to the direct debit arguing that he has already disposed of the credit amount.

(2) After account statement
If the bank only becomes aware of an incorrect credit after issuing an account statement and if the bank has the right to a repayment claim against the customer, it will debit his account with the amount of its claim (adjustment). If the customer objects to such adjustments, the bank will re-credit the amount to the account and will claim such repayment to be made separately.

(3) Customer information; interest calculation
The bank will immediately inform the customer about negative bookings and adjustments. With regards to interest, the bank will complete such bookings effective to the day the incorrect booking was made.

9. Collection orders

(1) Issuing conditional credits upon submission
If the bank credits cheques and debits before encashment, this is effectuated on condition of encashment, even when such papers are payable directly at the bank. If the customer hands in papers with the order to obtain a claimed amount from a creditor (for example interest coupons), and if the bank credits the claimed amount, this happens under the condition that the bank will receive the amount. Such condition also applies when the papers are payable directly at the bank. If cheques or debits are not encashed or if the bank does not receive the claim from the collection order, the bank will reverse its conditional credit, irrespective of whether an account statement has been issued in the meantime.

(2) Encashment of debits and cheques issued by the customer
Debits and cheques are encashed when the debit booking is not reversed with two bank working days after its completion. Cash cheques are already encashed upon payment to the presenter of the cheque. Cheques are also already encashed when the bank sends out a paid notification in individual cases. Debits and cheques that are presented through the accounting centre of a Federal State Central Bank are encashed when they are not returned to the accounting centre by a fixed time determined by the Federal State Central bank.

10. Foreign currency business and risks of foreign currency accounts

(1) Order completion for foreign currency accounts
The purpose of the customer's foreign currency accounts is to complete cashless payments to the customer and dispositions of the customer in foreign currency. Dispositions of credits on foreign currency accounts (for example through transactions debited to the foreign currency credit) will be processed by including banks in the country of the currency, when the bank does not fully complete them itself.

(2) Credits for foreign currency business with the customer
If the bank concludes business with the customer (for example a foreign exchange contract) from which it owes procuration of an amount in a foreign currency, it will meet is foreign currency obligations by crediting the amount to the customer's account in this currency, if not otherwise agreed.

(3) Temporary limitation of services by the bank
The bank's obligations to complete a disposition debiting a foreign currency credit (paragraph 1) or to meet a foreign currency obligation (paragraph 2) is paused to the extent and as long as the bank can not or not fully dispose in the currency of the foreign currency credit or obligation due to political measures or events in the country of such currency. To the extent and as long as such measures or events continue, the bank is not obligated to meet such obligations at another place outside of the country of the respective currency, in another currency (including in Euros) or by acquiring cash. The bank's obligation to complete a disposition debiting a foreign currency account is, however, not paused when the bank can fully complete it in-house. The above regulation does not affect the customer's and the bank's right to settle due mutual claims with each other in the same currency.

(4) Exchange rate
Exchange rates for foreign currency business are determined by the "List of Prices and Services".

Customer's obligation to participate

11. Customer's obligations to participate

(1) Change of name, address or power of representation provided to the bank
To ensure proper business operations, the customer has to notify the bank immediately of any change of name, address or termination or change of a power of representation issued to the bank (especially powers of attorney). This notification obligation also applies when the power of representation is listed in a public register (such as the commercial register) and when such termination or change is recorded in such register.

(2) Clarity of orders and transactions
The content of orders and transactions must be recognisable free of doubt. Orders and transactions that are not formulated clearly can result in further questions which may lead to delays. The customer especially has to ensure correctness and completeness of the name of the payee, the stated account number, the stated bank code and the stated currency for orders to credit an account (for example when submitting direct debits and cheques) and for transactions. Changes, confirmations or repetitions of orders and transactions have to be marked as such.

(3) Special remark for urgent completion of an order or transaction
If the customer thinks completion of an order or a transaction is particularly urgent, he has to specifically point this out to the bank. For orders or transactions issued by completing a form, such urgency has to be notified separately of the form.

(4) Check and objection for notifications of the bank
The customer immediately has to check correctness and completeness of account balances, securities statements, portfolio- and profit statements, other statements, notifications of completion of orders and transactions as well as information about expected payments and transmissions and has to notify the bank of possible objections immediately.

(5) Notification of the bank for missing messages
If the customer does not receive account statements and portfolio statements, he has to notify the bank immediately. Such obligation to notify the bank also applies when the customer does not receive other messages that he was expecting (such as securities statements, account balances after completion of the customer's orders and transactions or payments the customer is expecting).

Costs of bank services

12. Interest, fees and disbursements

(1) Interest and fees for private customer business
Interest and fees for the usual credits and services in private customer business are determined by the "price table - standard rates in standardised private customer business" and by the "List of Prices and Services" (supplementary). When the customer uses a credit or service included in this list and no other agreements have been reached, the interest and fees listed in the price table or List of Prices and Services at that time shall apply. For services not included in these lists which are performed upon request by the customer or in his assumed interest and which can, based on the conditions, only be expected to be performed against a fee, the bank can determine the amount of such fees at its own reasonable discretion (§ 315 German Civil Code).

(2) Interest and fees outside of private customer business
Outside of private customer business, the bank determines interest and fees at its own reasonable discretion, when no other agreements have been reached (§ 315 German Civil Code).

(3) Change of interest and fees
Changes of interest for loans with flexible interest rates is done in accordance with the loan agreements reached with the customer. The bank can change the fee for services that the customer usually uses in the long term in the business relationship (such as account- and portfolio management) at its own reasonable discretion (§ 315 German Civil Code).

(4) Customer's right of termination in the case of increase in interest and fees
The bank will notify the customer of changes in interest and fees in accordance with paragraph 3. In the case of an increase, the customer can terminate the affected business relationship within six weeks after notification of such change with immediate effect. If the customer terminates the business relationship, the increased interest and fees will not be applied to the terminated business relationship. The bank will allow an appropriate timeframe for completion.

(5) Disbursements
The bank is entitled to charge the customer incurred disbursements when the bank becomes active on the customer's behalf or in his assumed interest (especially for long distance calls, postage) or when ordering, administrating, releasing or using securities (especially solicitor's fees, storage fees, costs for monitoring of collaterals).

(6) Particularities for consumer loan agreements
Interest and costs (fees, disbursements) of loan agreements that have to be in written form pursuant to § 492 German Civil Code are determined by the specifications in the contract document. When no interest rate is stated, the legal interest rate applies; non-stated fees are not owed (§ 494 (2) German Civil Code). Pursuant to § 493 German Civil Code, the applicable interest rate for overdrafts is determined by the price table and information provided to the customer by the bank.

Securities for the bank's claims against the customer

13. Provision or increase of securities

(1) Bank's claim for provision of securities
The bank can request provision of banking securities for all claims from the banking business relationship, including when such claims are conditional (for example indemnity claims for expenses due to availment of a guarantee provided on behalf of the customer). When the customer has taken liability for obligations of another customer of the bank (for example as a guarantor), the bank can only request provision or increase of securities with regards to the debt resulting from taken liability when such obligation becomes due.

(2) Change of risk
When the bank has fully or partially refrained from requesting provision or increase of securities when claims arise against the customer, it can also request a security at a later stage, the prerequisite for this being that a situation arises or becomes known that justifies an increased risk assessment of claims against the customer. This can especially be the case when
- the customer's economic situation has significantly worsened or risks worsening, or
- when the current securities have decreased in value or risk decreasing in value.
No collateral is required when it has specifically been agreed that the customer does not need to provide any or only specifically stated securities. For consumer loan agreements, securities only have to be provided or increased insofar as the securities are included in the loan agreement; when the net loan amount exceeds Euro 50,000, securities also have to be provided or increased when the loan agreement does not include any or no final details
on securities.

(3) Timeframe for provision or increase of securities
The bank will allow a reasonable time limit for provision or increase of securities. If the bank intends to use its right of termination without notice pursuant to No. 19 (3) of these terms and conditions in case the customer does not comply with his obligation to provide or increase securities within the applicable timeframe, it will notify the customer about this in advance.

14. Agreement on lien for the benefit of the bank

(1) Agreement on lien
The customer and the bank agree that the bank acquires a lien for the securities and items that a domestic branch has acquired or will acquire in a banking business operation. The bank also acquires a lien for the claims that the customer is entitled to or will be entitled to in the future against the bank from the banking business relationship (for example account balances).

(2) Secured claims
The purpose of the lien is to secure all existing, future and conditional claims that the bank is entitled to against the customer with all its domestic and international branches from the banking business relationship. When the customer has taken liability for obligations of another customer of the bank (for example as a guarantor), the lien only ensures the debt resulting from taken liability when it becomes due.

(3) Exceptions from the lien
When the bank acquires disposition of monies or other assets with the condition that they are only to be used for a specific purpose (for example cash deposit for encashing a bill), the bank's lien does not apply to these assets. The same applies to stocks issued by the bank itself (its own stocks) and for securities stored abroad by the bank for the customer. In addition, the lien does not apply to the bank's own profit participation rights / -certificates issued by the bank itself and neither to the securitised and non-securitised subordinate obligations of the bank.

(4) Interest- and profit share certificates
If securities are subject to the lien of the bank, the customer is not entitled to request release of the interest- and profit share certificates belonging to these papers.

15. Securities interest for debit entry advices and discounted bills

(1) Transfer by way of security
The bank acquires ownership by way of security of the cheques and bills presented to the bank for collections at the moment of submission. The bank acquires unrestricted ownership of discounted bills at the moment of bill purchase; if it charges discounted bills back to the account, ownership by way of security of such bills remains with the bank.

(2) Assignment by way of security
With the acquisition of ownership of cheques and bills, the respective claims are also transferred to the bank; furthermore, subrogation also takes place when other documents are submitted for collection (for example direct debits, commercial trade documents).

(3) Debit entry advices for specific purposes
When debit entry advices are submitted to the bank with the order to only use their value for a specific purpose, the transfer by way of security and assignment by way of security do not apply to these instruments

(4) Secured claims of the bank
The purpose of ownership by way of security and assignment by way of security is to secure all claims that the bank is entitled to against the customer from his current accounts when submitting debit entry advices as well as those that are incurred as a result of the return debit of non encashed debit entry advices or discounted bills. Upon the customer's request, the bank will retransfer the ownership by way of security of the instruments as well as of the claims transferred to the bank to the customer, if the bank is not entitled to any claims to be ensured against the customer at the time of such request or if the bank does not let him dispose of the value of the instruments before their final payment.

16. Restriction of collateral and obligation to release

(1) Cover limit
The bank can assert its claim for provision or increase of securities until the liquidable value of all securities corresponds to the total amount of all claims from the banking business relationship (cover limit).

(2) Release
If the liquidable value of all securities consistently exceeds the cover limit, the bank has to release securities of its choice upon the customer's request, to the amount of the sum exceeding the cover limit; when selecting the securities to be released, the bank will take the justified interests of the customer and of a third security issuer who has provided securities for the obligations of the customer into account. The bank is also obligated to complete the customer's order
concerning values subject to the lien (such as sale of securities, paying out savings).

(3) Special conditions
If another assessment tool than the liquidable value or another cover limit or another limit for releasing securities has been agreed for a particular security, than these tools apply.

17. Liquidation of securities

(1) Elective right of the bank
When the bank liquidates, the bank can choose between several securities. The bank will take the justified interest of the customer and of a third security issuer who has provided security for the customer's obligations into account when liquidating and selecting the security to be liquidated.

(2) Credit of profit pursuant to withdrawal tax law
When the liquidation process is subject to withdrawal tax, the bank will issue the customer with a credit for the profit, which is considered the invoice for supplying the item serving as security and meets the requirements of the withdrawal tax law.

Termination

18. Customer's right of termination

(1) Right of termination at any time
The customer can terminate the entire business relationship or individual parts of the business relationship (such as the cheque contract) for which neither a term nor any other termination regulations have been agreed at any time without complying with a term notice.

(2) Termination due to important reason
When a term or other termination regulations have been agreed for a business relationship, a business relationship can only be terminated without notice for an important reason which makes it unacceptable for the customer to continue the business relationship while also taking into consideration the justified interests of the bank.

(3) Legal termination rights
Legal termination rights remain unaffected.

19. Termination rights of the bank

(1) Termination complying with a term notice
The bank can terminate the entire business relationship or individual parts of the business relationship (such as the cheque contract that entitles to use of cheque books) for which neither a term nor any other termination regulations have been agreed at any time complying with a reasonable term notice. When determining the term notice, the bank will take the customer's justified interests into consideration. The notice for terminating management of running accounts and portfolios is no less than six weeks.

(2) Termination of indefinite loans
Loans and loan commitments for which no term nor other
termination regulations have been agreed, can be terminated by the bank at any time without
complying with a notice period. When accessing this termination right, the bank will
take the customer's justified interests into consideration.

(3) Termination due to an important reason without complying with a term notice
Termination of the entire business relationship or individual parts of the business relationship without complying with a term notice is possible when there is an important reason for which it becomes unacceptable for the bank to continue the business relationship, while also taking into consideration the customer's justified interests. An important reason is particularly
- when the customer has provided incorrect information about his capital situation which greatly influenced the bank's decision to grant a loan or other business including risks for the bank (e.g. provision of a payment card), or
- when the customer's capital situation or recoverability of a security decreases significantly or risks decreasing significantly, thereby threatening the customer's ability to pay back a loan or to meet another obligation towards the bank - even after liquidating a security existing for this purpose, or
- when the customer does not meet his obligation to provide or increase security pursuant to No. 13 (2) of these Terms and Conditions or due to another agreement within the reasonable timeframe set by the bank.
If the important reason is breach of a contractual obligation, termination is only possible after unsuccessful expiration of a time limit set for resolving the issue or after unsuccessful reminder, unless this is not necessary due to the special nature of the individual case (§ 323 (2) and (3) German Civil Code).

(4) Termination of consumer loan agreements in the case of arrear
Insofar as the German Civil Code includes special provisions for termination due to arrears in repayment of a consumer loan agreement, the bank can only terminate in accordance with these regulations.

(5) Processing after termination
In the case of a termination without term notice, the bank will allow the customer a reasonable timeframe for processing (especially for repayment of a loan), when no immediate settlement is necessary (for example in the case of termination of a cheque contract return of the cheque book).

Protection of deposits

20. Deposit protection fund

(1) Extent of protection
The bank is associated with the Deposit Protection Fund of the Association of German Banks. The deposit protection fund protects all liabilities that are to be listed under balance sheet item "Liabilities towards customers". This includes sight- time- and savings deposits including savings bonds issued to the respective name. The protection limit per creditor is 30 % of the liable equity of the bank applicable to securing deposits. The bank will reveal this protection limit to the customer upon request. It can also be accessed online at www.quirinbank.de.

(2) Exceptions from protection of deposits
Claims for which the bank has issued bearer instruments, such as bearer debentures and bearer deposit certificates as well as obligations towards other credit institutes are not protected.

(3) Complimentary application of statute of deposit protection fund
For additional details of the extent of protection, please refer to paragraph 5 §§ 13, 14, 15, 16 and 17 of the statute of the deposit protection fund, which will be provided upon request.

(4) Subrogation
Insofar as the deposit protection funds or another party commissioned by the fund makes payments to the customer, his claims against the bank in the respective amount with all side rights are, step by step, transferred to the deposit protection fund.

(5) Disclosure of information
The bank is entitled to disclose all related information and provide documents to the deposit protection fund or to a party commissioned by the fund.