General Business Conditions

Basis of the business relationship between the customer and the Bank. This English translation of the General Business Conditions is provided solely for your convenience. It is not binding for the Bank. The German text is the sole authoritative version and shall prevail in the event of a dispute.


No. 1 - Basis of the business relationship

(1) Business relationship based on mutual trust

The business relationship between the customer and the Bank is determined by the specific features of the banking business and a special relationship of mutual trust. The customer may rely upon the Bank to carry out his instructions with the diligence of a prudent businessman and to maintain banking secrecy.

(2) General and Special Business Conditions

These General Business Conditions apply to the business relationship and supplement any agreements made by individual contract. Supplemental and differing special conditions apply in addition or instead of the General Business Conditions to particular business sectors, e.g. the areas of payment transactions, the savings business and securities transactions; these are agreed with the customer when the contract is entered into (for example when an account is opened) or when instructions are issued.

No. 2 - Amendments to the Business Conditions and to payment services master agreeements

(1) Offer by the Bank

Amendments to the General Business Conditions, Special Conditions or payment services master agreements or the introduction of additional conditions shall be offered to the customer no later than two months before the proposed effective date in the form permitted by law.

(2) Consent to the amendment

The customer is deemed to have consented to the offer by the Bank unless the customer has notified the Bank of its rejection before the proposed effective date of the amendments. The Bank shall specifically draw the customer's attention to the effect of this provision in its offer. The Bank will then apply the amended version of the General Business Conditions, Special Conditions or payment services master agreements, or the additionally introduced conditions as the basis for the future business relationship.

(3) Special right of termination in the event of amendments to conditions governing payment services or to payment services master agreements

If the customer is offered amendments to conditions governing payment services (e.g. payment transfer conditions) or to payment services master agreements, the customer is entitled to terminate the payment services master agreement affected by the amendment before the proposed effective date of the amendment without notice and at no cost. The Bank shall specifically draw the customer's attention to this right of termination in its offer.

(4) Differing agreements

The amendment procedure as defined in paragraphs 1 and 2 is not applicable if agreements to the contrary have been reached. Sentence 1 does not apply to amendments to condi-tions governing payment services or to payment services master agreements.

No. 3 - Banking information

(1) Content of banking information

Banking information means general statements and comments concerning the financial situation of customers, their creditworthiness and solvency. Information as to the amounts of balances held in accounts, of savings deposits, of assets kept in safe custody or of other assets entrusted to the credit institution or of any credit utiIised will not be disclosed.

(2) Requirements for disclosure of banking information

The Bank may provide banking information on legal entities and merchants recorded in the Commercial Register provided that the inquiry relates to their business activities, unless an instruction to the contrary has been received from the customer. In any other case the Bank may only provide banking information if the customer has, in general or in the particular case, expressly agreed thereto. Banking information is only provided to the credit institutions own customers and to other credit institutions for their own purposes and those of their customers; such information is only provided if the person requesting it substantiates a credible legitimate interest in the information requested.

(3) Written confirmation

If banking information on creditworthiness and solvency is given verbally, the Bank reserves the right to promptly send a written confirmation, the contents of which shall prevail from that moment on.

No. 4 - Powers of representation and disposition

(1) Notification

Any powers of representation or disposition notified to the Bank shall be deemed valid until receipt by the Bank of a notice of their revocation or amendment, unless these circumstances are known to the Bank or are not known to it due to its own negligence. This also applies if such powers are recorded in a public register and an amendment has been published.

(2) Defect in the legal capacity of the representative

The customer shall bear any loss resulting from any defect occurring in the legal capacity of the customer's representative which without the fault of the Bank did not come to its knowledge.

No. 5 - Documents proving identity or title

(1) Documents proving inheritance

Upon the death of the customer, any claim to legal succession vis-a-vis the Bank must be supported by documents proving entitlement to such inheritance.

(2) Authority of the Bank to make payment or delivery

If an original or a certified copy of the probate document (will or inheritance contract) and the minutes of the opening probate are submitted to the Bank, the Bank may treat the person designated as heir or executor therein as an authorised person and permit such person to make disposals, and make payments to such person, thereby in particular discharging the Bank from its obligations. This shall not apply if the Bank is aware of the inaccuracy or invalidity of such documents or if the Bank has not be-come aware of this as a result of its negligence.

(3) Other foreign documents

If foreign documents are submitted to the Bank as proof of identity of a person or proof of any entitlement, it shall check whether such documents are suitable as proof. It shall, however, only be liable for their suitability, validity and completeness and for their correct translation and interpretation in the event of negligence or if the document as a whole has been falsified. To the above extent, the Bank may regard the persons designated as entitled as being actually entitled and, in particular, permit them to dispose of any assets and may make payment or delivery to them, by way of discharge in full.

No. 6 - Choice of law, jurisdiction, place of performance

(1) German law

German law shall be applicable to the business relationship, unless mandatory statutory provisions dictate otherwise.

(2) Place of performance

The place of performance for the Bank and the customer shall be the locality of the registered office of the Bank.

(3) Jurisdiction

If the customer is a person carrying on a trade or business or public authority or a state-funded corporation, the Bank may sue in its place of general jurisdiction and may only be sued in that jurisdiction.

Current accounts and other transactions

No. 7 - Current account, statement of account

(1) Current account

The Bank maintains an account for processing regular business and payment transactions (Girokonto) as a current account within the meaning of Article 355 of the German Commercial Code/Handelsgesetzbuch (Konto in laufender Rechnung).

(2) Statement of account

Unless otherwise agreed, the Bank issues statements of account at the end of each calendar quarter. Statements of accounts will also be issued at other dates if there is a legitimate interest of one of the parties to the agreement.

(3) Objections to statement of account

Any objections to statements of account must be made to the Bank. Notwithstanding the obligation to raise objections to statements of account immediately [item 20, paragraph 1, letter (g)], such statements shall be deemed approved if objections thereto are not raised within six weeks after receipt of the statement of account. The Bank will draw the customer's attention to these consequences when the statement of account is issued. If any inaccuracy is subsequently discovered, both the customer and the Bank may demand rectification based on statutory claims.

No. 8 - Rectification of incorrect credit entries

(1) Reversal of entries prior to statement of account issuance

Where credit entries are made without any binding authority having been given (e.g. due to a mistake or clerical error), the Bank may reverse them by simple entry (reversal entry) by the next statement of account, provided that the Bank has a claim for repayment against the customer.

(2) Rectifying entry after issue of statement of account

The Bank may by means of a rectifying entry claim repayment under paragraph 1 even after having issued a statement of account if it has failed to ascertain the incorrect credit entry prior to such time. If the customer objects, the Bank will reverse the rectifying entry and reclaim by other means.

(3) Identification

Reversal and rectifying entries shall be identified as such in the statement of account.

No. 9 - Credit and payment of items for collection

(1) Credit entries subject to collection

If the Bank credits the countervalue of cheques, direct debits, or other items for collection prior to their payment, this is done subject to collection and receipt of their countervalue (credit "subject to collection"). This also applies if the cheques, direct debits, or other items for collection are payable at the Bank itself. If cheques or direct debits are not paid or if the Bank does not obtain the countervalue from an item for collection, the Bank will reverse the credit entry in accordance with clause 23 paragraph 2 of these General Business Conditions, even after any statement of account which may have been issued in the meantime.

(2) Payment

Cheques and other items for collection shall only be effectively paid if the debit entry has not been reversed by the end of the second banking day[2] after it was made. They shall also be effectively paid if the Bank has previously expressly stated to third parties that it wishes to pay the items (e.g. by sending a payment advice). The payment rules in the separate conditions agreed for this purpose apply to direct debits. Cheques collected through the Bundesbank clearing office are effectively paid if they can no longer be returned in accordance with its Business Conditions. Uncrossed Cheques are effectively paid once payment has been made to the presenter.

No. 10 Confirmation of instruction prior to execution

In the case of instructions given by telephone or by other mechanical means and also in the case of unsigned orders the Bank reserves the right to require immediate confirmation prior to carrying out the instruction.

No. 11 - Set-off by the customer

If the customer is not a consumer, he may only set off his claims against the Bank to the extent that his claims are undisputed or have been ascertained by final judgment. Sentence one does not apply if the requirements of section 513 of the German Civil Code (on business start-ups) are fulfilled. Statutory set-off prohibitions remain unaffected.

No. 12 - Accounts in foreign currency

The exclusive purpose of a foreign currency account is to effect the settlement of noncash payments to the customer or withdrawal orders by the customer in a foreign currency.

No. 13 - Discharge from performance of transactions in foreign currencies

The obligation of the Bank to execute a disposal to the debit of a deposit in a foreign currency or to satisfy a liability in a foreign currency, is suspended until and to the extent the Bank is not able or has only limited ability to effect such a disposal in the currency in which the deposit or the liability is denominated, due to political measures or incidents in the country of such currency. Until and to the extent such measures or incidents persist, the Bank shall also not be obligated to effect the disposal at a place outside of the country of such currency, or in a different currency (also not in Euro) or by purchasing cash. The obligation to effect a disposal to the debit of deposit in a foreign currency, shall not be suspended if it can be carried out by the Bank entirely within its own organisation. Notwithstanding any of the foregoing provisions the customer and the Bank shall retain the right to set-off matured reciprocal claims in the same currency.

No. 14 - Receipt of monies in foreign currency

Sums of money in a foreign currency may in the absence of express instructions to the contrary from the customer, be credited by the Bank in Euro if the Bank does not maintain an account for the customer in the relevant foreign currency.

No. 15 - Exchange Rate

The exchange rate for transactions in a foreign currency shall be determined in accordance with the list of Prices and Services (Preis- und Leistungsverzeichnis). The payment services master agreement applies additionally in the case of payment services.

No. 16 - Deposit-taking

In the absence of any agreement to the contrary, deposits are due without notice of termination (demand deposits). The interest rates applicable to demand deposits shall be placed on display. For the purposes of calculating the interest on deposits, each month shall be deemed to have 30 days.

Charges and expenses

No. 17 - Interest and charges

(1) Interest and charges in business transactions with consumers

The level of interest and charges applicable to standard loans and services in business transactions with consumers is specified in the Notice of Charges (Preisaushang) and supplemented by the List of Prices and Services (Preis- und Leistungsverzeichnis). If a consumer uses a loan or service listed there and has not agreed a different arrangement, the interest and charges specified at this time in the Notice of Charges (Preisaushang) or the List of Prices and Services (Preis- und Leistungsverzeichnis) shall apply.

(2) Interest and charges for non-consumer transactions

The level of interest and charges applicable to non-consumer transactions is determined by the agreements made, supplemented by the List of Prices and Services (Preis- und Leistungsverzeichnis) in the version applicable at the date of utilisation.

(3) Charges for other services

The Bank may levy an appropriate charge in accordance with the statutory provisions for services that are not covered by an agreement or listed in the Notice of Charges (Preisaushang) or in the List of Prices and Services (Preis- und Leistungsverzeichnis), that are rendered on behalf of the customer or in what is believed to be the customer's interest and that, on the basis of the circumstances, can only be expected to be rendered for a fee.

(4) Activities for which no charge is levied

No charge shall be levied for activities that the Bank is required by law to undertake or that it is required to undertake on the basis of a separate ancillary contractual obligation, or that it undertakes primarily in its own interests, unless permitted by law to do so and then charges shall be levied in accordance with the legal regulations.

(5) Changes in interest rates, customer's right of termination in case of an increase

Changes in interest rates for loans with a variable rate of interest shall be made on the basis of the relevant loan agreements with the customer. The Bank shall notify the customer of changes in interest rates. If interest rates are increased, the customer shall be entitled to terminate the business relationship concerned with immediate effect within six weeks of notification of the change, unless otherwise agreed. If the customer terminates the business relationship, the increased interest rates shall not be applied to the terminated loan agreement. Termination by the customer shall be deemed to be ineffective if the customer does not repay the amount owed within two weeks of the effective date of the termination.

(6) Changes in charges for services typically used continually by customers

Changes in charges for key services that are typically used continually by customers as part of their business relationship (for example custody account management), or changes in charges regulated by payment services master agreements, shall be offered to the customer in text format no later than two months before their proposed effective date. If the customer has agreed an electronic communication channel with the Bank as part of the business relationship, the changes may also be offered using this channel. The customer's consent is deemed to have been given unless the customer has communicated its rejection before the proposed effective date of the change. The Bank shall specifically draw the customer's attention to this consequence in its offer. If the customer is offered changes, the customer is entitled to terminate the agreement affected by the change before the proposed effective date of the changes without notice and at no cost. The Bank shall specifically draw the customer's attention to this right of termination in its offer. If the customer terminates the agreement, the changed charge shall not be applied to the terminated business relationship.

(7) Special rules for consumer loan agreements

The interest and charges applicable to consumer loan agreements shall be governed by the relevant contractual arrangements, supplemented by statutory provisions.

(8) Special rules for payment services agreements with consumers

The charges applicable to payment services agreements with consumers shall be governed by the relevant contractual arrangements and special conditions. In the absence of separate regulations, paragraphs 1 and 4 and - in case of changes of any charges for payment service master agreements (e.g. current account agreement) - paragraph 6 shall apply.

No. 18 - Reimbursement for expenses

Reimbursement charges for expenses incurred by BayernLB will be in line with German law.

Duties and liability of the Landesbank and the customer

No. 19 - Liability of the Bank

(1) Liability for own fault

The Bank shall be liable for any fault of its own and of those persons whose services it uses to perform its obligations towards the customer, save as otherwise provided for in the following paragraphs, Special Conditions or individual agreements. If the Bank is liable and if the damage has not been caused by the Bank alone, whether through its fault or not, liability for damages shall be determined by the principles of contributory fault, section 254 of the German Civil Code (Bürgerliches Gesetzbuch).

(2) Liability for third parties

The Bank may, in the absence of instructions to the contrary, pass on instructions in whole or in part to third parties for them to effect independently, where this appears necessary, taking into account the nature of the instruction and the interests of the Bank and the customer. In such cases, the obligations and liabilities of the Bank shall be limited to the transmission of the instruction, including care in selecting and instructing the third party.

(3) Liability in case of force majeure

The Bank shall not be liable for any losses caused by disturbance of its operations (e.g. bomb threat, bank raid), in particular as a consequence of force majeure (e.g. war and natural events) as well as in consequence of other events for which the Bank is not responsible (e.g. strike, lock-out, disruption of communications), or which may occur through the exercise of supreme executive power in Germany or abroad.

No. 20 - The customer's duties of co-operation and care

(1) Principles

The Bank will carry out the customer's instructions in a business-like manner. The customer has special duties of co-operation and other duties of care, in particular, the following duties:

a) Notification of important information and changes

The customer must notify the Bank immediately of all facts which are material to the business relationship, especially any changes in the name, address, civil status, capacity to dispose of property or to incur liabilities of the customer (e.g. marriage or similar engagement, change in matrimonial property status) or the persons authorized to sign on behalf of the customer (e.g. subsequent legal incapacity of a representative or attorney) as well as changes in the economic beneficiary or the powers of representation or disposition notified to the Bank (e.g. powers of attorney and commercial representation). This duty to notify shall also apply if such facts are recorded in a public register and if they are published. The names of the persons authorized to act on behalf of the customer or to dispose of property on behalf of the customer, together with a specimen of the personal signature of such persons, shall be notified to the Bank on the forms provided by the Bank. There may also be more far-reaching statutory notification requirements, in particular as a result of the German Money Laundering Act (Geldwäschegesetz).

b) Unambiguous information in orders and instructions

Orders and instructions of every kind must unequivocally permit identification of the substance of the transaction. Amendments and confirmations must be designated as such. When giving payment orders, the customer must, in particular, ensure that the account number and the sort code number or IBAN [2] and BIC [3] are stated correctly, completely, unequivocally and legibly.

c) Care in transmission of particular orders

If orders or instructions are transmitted by telephone or other mechanical means, the customer must take care that no errors in transmission, misunderstandings, improper usage or mistakes occur.

d) Deleted

e) Express notification of any special instructions

The customer shall transmit any special instructions relating to the execution of orders to the Bank separately; for orders given on a printed form, this must be done separately from the form. This applies, in particular, if payments are to be applied against certain amounts due to the Bank.

f) Notification of time limits and dates on which transactions are to be effected

In the same way as under e) above, the customer must expressly notify the Bank if instructions are to be carried out within certain time limits or on certain dates or if there is risk of extraordinary loss if instructions are not carried out properly, especially if not carried out within the time limit. Attention is drawn to the special duty to notify in the case of short presentation periods for cheques under clause 24.

g) Complaints to be made immediately

Objections to statements of account, direct debits, summaries of accounts, list of securities or other communications rendered by the Bank and also any objections as to the proper delivery of securities or other valuables by the Bank, must be raised immediately. If statements of account or lists of securities held on deposit are not received by the customer, the customer must notify the Bank immediately. This duty to notify also applies to non-receipt of other advices, receipt of which must, or ought to have been, expected by the customer.

h) Checking of confirmations of the Bank

Where confirmations of the Bank are at variance from orders or instructions given by the customer, the customer must object immediately.

(2) Liability arising from neglect of duty

Any loss and damage arising from culpable neglect of the customer's duty to cooperate and other duties to exercise due care shall be borne by the customer. If the Bank has contributed to the occurrence of the loss through its culpable conduct, liability for damages shall be determined by the principles of contributory fault, § 254 the German Civil Code (Bürgerliches Gesetzbuch).

Lien under the General Business Conditions, further security, release of security

No. 21 - Lien, assignment by way of security

(1) Extent

The customer hereby grants the Bank a lien on valuables of any kind which, in the course of banking business, may come into the possession or power of disposition of the Bank through acts of the customer or of third parties for account of the customer. Such valuables include all things and rights of any kind (by way of example: goods, foreign exchange, securities including interest, loan stock and dividend coupons, shares in a collective deposit, subscription rights, cheques, bills of exchange, bills of lading, warehouse warrants, inland bills of lading). The lien also covers claims of the customer against the Bank (e.g. from credit balances). Claims of the customer against third parties shall be deemed to be assigned to the Bank if documents representing the claims, in the course of banking business, come within the power of disposition of the Bank.

(2) Exclusions

If monies or other valuables come into the power of disposition of the Bank expressly designated for a particular purpose (e.g. cash deposit for payment of a cheque, bill of exchange or the execution of a certain credit funds}, then the lien of the Bank shall not extend to these valuables. Securities held in safe custody abroad are not, unless otherwise agreed, subject to the lien. The same applies to participation rights/certificates issued by the Bank itself and to claims of the customer arising from subordinated capital stock (e.g. subordinated bearer bonds).

(3) Secured claims

The lien shall secure all existing and future claims, whether contingent or time limited, and all statutory claims, of the Bank against the customer which it may acquire in connection with the business relationship. Claims against customers under guarantees issued by them in favour of third parties shall only be secured from their maturity on.

(4) Claim to the lien

The Bank may only retain the valuables which are subject to the lien under the General Business Conditions if it has a legitimate interest in obtaining security. Such interest exists, in particular, under the conditions on the right to demand further security under clause 22.

(5) Enforcement of Security

The Bank shall be entitled to realise the valuables if the customer, notwithstanding demand with a reasonable grace period and warning of enforcement in accordance with § 1234 paragraph 1 German Civil Code (Bürgerliches Gesetzbuch), fails to meet his liabilities when they fall due. Where there are several security items the Bank has the right to choose between them. When selecting and realising security items, the Bank will, as far as possible, take account of the legitimate interests of the customer. The Bank shall be entitled to appropriate any proceeds of realisation which are insufficient to satisfy all its claims as it may in its reasonable discretion think fit. The Bank shall draw up the credit advices for proceeds of realisation in favour of the customer in such manner that they may be regarded as invoices within the meaning of the Turnover Tax Law.

No. 22 - Further security and release of security

(1) Right to demand further security

The Bank may demand that the customer provides or in-creases security for his liabilities under borrowings if the risk situation undergoes a change due to circumstances occurring or becoming known subsequently, e.g. due to a deterioration or threatened deterioration in the financial position of the customer, any person jointly liable or any guarantor or in the value of the existing security.

In the case of consumer loan agreements, the Bank's right to require the customer to provide or increase security applies only if the security is specified in the loan agreement. If the net credit amount exceeds EUR 75,000 the Bank's right to require the customer to provide or increase security also applies even if a consumer loan agreement concluded prior to 21 March 2016 or a consumer loan agreement pursuant to Section 491 paragraph 2 German Civil Code concluded as of 21 March 2016 does not contain any or any definitive details about security.

(2) Duty to release security

The Bank is obliged, upon request, to release such security items as the Bank may choose to the extent that the realisable value of all the security items not only temporarily exceeds the total amount of all claims of the Bank by more than 10 %. The covering limit of 10 %, as stated in the immediately preceding sentence, will be increased by the then current value added tax rate, to the extent that such value added tax is imposed on the Bank, in case of realisation of the security items.

Items for collection

No. 23 - Collection in the collecting business

(1) Collection agreement

Cheques, bills of exchange, direct debits or other items for collection are taken by the Bank for collection (encashment) only, unless otherwise agreed.

(2) Redebit

If the Bank has credited the amount of items for collection prior to receipt of that amount, it may redebit the amount in case of non-payment of the items, even if a statement of account has been issued in the meantime. The same applies

  • if the countervalue is not received by the Bank or
  • the free availability of the countervalue is restricted by law or by measures of government authorities or
  • due to insurmountable obstacles the items cannot be presented or cannot be presented in time or
  • collection is subject to disproportionate difficulties, which were not known at the time the items were taken for collection or
  • a moratorium has been declared in the country in which the items are to be paid.

Under the same preconditions, the Bank may return items for collection even before their maturity.Redebit is also permissible if the items cannot be returned. If the Bank is responsible for this, it shall bear the loss sustained by the customer resulting there from.

No. 24 - Period allowed for presentation, urgent action

If cheques payable at the place of the Bank are not deposited by latest the third business day, and cheques payable at other banking places by latest the fourth business day prior to expiry of the period allowed for presentation (Article 29 of the Cheques Law - "Scheckgesetz") or, if deposited by mail, they are not received by the Bank within such time and before close of business, the customer must by separate advice draw attention to the expiry of the period allowed for presentation and the possible need to take urgent action.

No. 25 - Security interest in the collecting business

(1) Transfer of ownership by way of security

By depositing cheques and bills of exchange for collection, the customer transfers to the Bank by way of security ownership of the items in the event that item for collection is not paid and the Bank is entitled to claim against the customer as a result of anticipatory disposals by the customer with regard to the collection, until such claims are satisfied. On acquiring ownership by way of security, the underlying claims also pass to the Bank.

(2) Assignment by way of security

When other items are deposited for collection (e.g. direct debits, commercial paper), the claims underlying the items pass to the Bank under the terms of paragraph 1.

Termination of the business relationship

No. 26 - Right of termination

(1) Ordinary termination

If neither a term nor other provisions for termination have been agreed, the customer and, where reasonably justified, the Bank may at any time, without observing any period of notice, terminate the business relationship as a whole or in respect of individual areas of business. If the relationship is terminated by the Bank, it will take reasonable account of the legitimate interests of the customer, in particular, by not giving notice at an inopportune time.

The period of notice for termination of a payment services master agreement (e.g. a current account or card agree-ment) by the Bank is not less than two months.

(2) Termination for good cause

Notwithstanding any other agreements, both the customer and the Bank may at any time, without observing any period of notice, terminate the business relationship as a whole or any individual respect if there is good cause making it unreasonable to expect the party terminating to continue the business relationship. In so doing, the legitimate interests of the other party to the agreement are to be taken into account. The Bank shall have such cause for termination especially if due to circumstances as listed below by way of example, the fulfilment of the payment obligations of the customer or the enforceability of the claims of the Bank are jeopardized, even if any security was enforced:

a) if a significant deterioration occurs or threatens to occur in the financial condition of the customer or in the value of any collateral provided as security for a loan, in particular if the customer suspends payments or declares that he intends to suspend payments or if bills of exchange accepted by the customer are protested;

b) if the customer fails within an adequate period of time to comply with his obligation to provide or increase security (clause 22 paragraph 1) following a request by the Bank so to do;

c) if the customer has made incorrect statements regarding his financial circumstances;

d) if execution is levied against the customer;

e) if the financial circumstances of a person jointly liable or any unlimited partner have deteriorated significantly or are in considerable jeopardy and also in the case of the death of, or a change in, an unlimited partner.

If the good cause is a breach of a contractual obligation, termination is permitted only after fruitless expiry of a granted cure-period or fruitless reminder. This shall not apply if the customer definitely and utterly refuses performance, fails to render performance on a contractually fixed date or within a specified time-period, although timely performance has contractually been made a condition by the Bank for its continued interest in the performance, or if, considering the interest of both sides, immediate termination is justified by specific circumstances.

(3) Termination of consumer loan agreements

Where the German Civil Code (Bürgerliches Gesetzbuch) prescribes mandatory special rules for the termination of consumer loan agreements, the Bank is only entitled to terminate such loans in accordance with these rules.

(4) Legal consequences of termination

Upon the termination of the business relationship as a whole or any individual, respect the amounts owing on the relevant accounts become immediately due. The customer is in addition obliged to release the Bank pro tanto from all liabilities assumed for or on behalf of the customer.

The Bank is entitled to give notice of termination of liabilities assumed for or on behalf of the customer and, effective as against the customer, to liquidate other liabilities, in particular those in foreign currency and it may immediately re-debit the customer's account for any bills and cheques purchased; claims arising under the laws relating to bills of exchange and cheques against the customer and any other person liable under the respective instrument for payment of the full amount of the bill and cheque together with associated claims shall, however, remain with the Bank until full settlement of any debit balance.

No. 27 - Continuing validity of the General Business Conditions

Even after termination of the business relationship as a whole or in any individual respect, the General Business Conditions shall continue to apply to the winding up thereof to the extent required to wind up the relationship.

No. 28 - Deposit protection by recognised deposit guarantee scheme

(1) Voluntary institutional guarantee system

BayernLB is a member of the Deutsche Sparkassen-Finanzgruppe's institutional protection scheme (protection scheme). The main purpose of the protection scheme is to protect the member institutions in order to avert any threatening or existing financial difficulties. By protecting the member institutions, the protection scheme likewise protects customers' deposits. Protected deposits mainly include savings accounts, savings certificates, term deposits, demand deposits and bonds.

(2) Statutory deposit guarantee scheme

The protection scheme has been officially recognised as a deposit guarantee scheme under the Deposit Guarantee Act (EinSiG). If contrary to paragraph 1, as an exception the protection does not take effect, customers are eligible to recover their money from deposits as defined in EinSiG section 2 paragraphs 3 to 5 up to the limit stated in EinSiG section 8 from the protection scheme. Under EinSiG section 6 deposits not eligible for repayment include deposits related to money-laundering transactions, bearer bonds issued by BayernLB and liabilities from own acceptances and promissory notes.

(3) Authorisation to provide information

BayernLB is authorised to provide to the protection scheme or its representatives all information and documents that are required by the protection scheme.

(4) Transfer of claims

Insofar as the protection scheme or an agent working on its behalf has made any payment to a customer, the customer's claims against BayernLB along with all ancillary rights shall pass to the protection scheme progressively according to the amounts paid.

[1] Bankings days are all working days apart from Saturdays and 24 and 31 December.
[2] International Bank Account Number
[3] Bank Identifier Code