AGREEMENT REGARDING FIDUCIARY DEPOSITS
(please complete and return by email to info@capitalsecuritybank.com)
between (hereinafter the "Client") and
Capital Security Bank (hereinafter the "Bank") Call Accounts, Fixed Deposits and Fiduciary Deposits Any balances in currencies other than United States Dollars (“Foreign Currency”) in favor of the Account Holder shall be held with correspondent banks inside or outside the relevant currency area in the name of the Bank. The Account Holder shall bear all the consequences of legal/official regulations and restrictions, as well as any taxes and duties which may be levied in the countries in which any funds, stocks, shares, bonds, mutual funds, notes, short-term money instruments, commercial papers, foreign exchange contracts or precious metals are held or have been issued or which fall under that country’s jurisdiction. If the Account Holder has combined balances held on call, as fixed deposits, or both (“Deposit Balance”) which exceed USD 5,000,000 or its equivalent in Foreign Currencies (“Deposit Balance Threshold”), the funds in excess of the Deposit Balance Threshold will be held as fiduciary deposits with correspondent banks in the name of the Bank but for the account and at the risk of the Account Holder. It is acknowledged that where the Account Holder’s Deposit Balance is greater than USD 5,000,000 or its equivalent in Foreign Currencies that: 1. The Account Holder hereby instructs and authorises the Bank to act as agent to use funds held by the Account Holder at the Bank which exceed the Deposit Balance Threshold to make fiduciary deposits in its own name but for the account and at the risk of the Account Holder. lt is expressly agreed the Bank does not hold such investments as custodian or trustee or in any other fiduciary capacity. 2.
The Bank’s sole obligation in respect of such investments shall be to account to the Account Holder for the proceeds of such investment. This obligation shall comprise a reporting obligation of the Bank to the Account Holder of an amount equivalent to the value of such investment and any accrued income deriving from such investment, as shall be actually received by the Bank. Capital and income shall be credited to the account only once the relevant amounts have been received by the Bank.
3.
The Bank shall be entitled to select any correspondent bank that it deems appropriate. The Account Holder shall be entitled to select the fiduciary deposit currency, amount and term (including any deposit renewals, extensions, increases or reductions) and to decide whether to make new fiduciary deposits as soon as any earlier fiduciary deposit mature, or at some later date. The Account Holder shall issue specific instructions in accordance with section 7 of these General Terms and Conditions regarding such matters in each case. Where the Account Holder fails to provide instructions or provides inadequate or late instructions, the Bank may select the fiduciary deposit currency, amount and term at its discretion for the account and at the risk of the Account Holder.
4.
The Bank shall not make any recommendations in relation to such investments. No advice shall be given in respect of specific instructions issued by the Account Holder, and the Account Holder agrees to waive any claim to such advice.
5.
The sum invested shall be subject to any of legal/official regulations and restrictions, as well as any taxes and duties which may be levied in the countries in which any fiduciary deposits are held or have been issued.
6.
If the correspondent bank fails to meet its obligation either in whole or in part, the Bank shall only be obliged to assign to the Account Holder any outstanding claims held on the Account Holder's behalf.
7.
All risks of such investment (e.g. without limitation, revaluations, exchange risks, tax deductions, insolvency of the destination correspondent bank/custodian/clearing broker, foreign regulations, restrictions on foreign investment, war and acts of god) shall be borne exclusively by the Account Holder other than any losses arising from the Bank’s own
Forms – Agreement Regarding Fiduciary Deposits CAPITAL SECURITY BANK LIMITED 1