HANG SENG BANK LIMITED INTEGRATED ACCOUNT TERMS AND CONDITIONS
PART IV TERMS AND CONDITIONS FOR OVERDRAFT FACILITIES
1.	Overdraft Facilities
	1.01	The Bank may grant any Overdraft Facilities to the Customer at its discretion.
	1.02	Where the Customer is required by the Bank to apply for any Overdraft Facilities, any notification by the Bank to the Customer of its decision to grant the relevant Overdraft Facilities will specify the terms of such Overdraft Facilities. The Customer shall be bound by such terms and other applicable provisions of these Terms and Conditions upon using such Overdraft Facilities.
	1.03	The Bank may specify any Sub-account through which any Overdraft Facilities may be used.
	1.04	The Bank has the overriding right at any time to demand immediate repayment of any outstanding amount of any Overdraft Facilities and to cancel any Overdraft Facilities. Any Overdraft Facilities is subject to review by the Bank monthly or at such other intervals as the Bank may determine.
	1.05	The Customer should inform the Bank as soon as possible of any difficulty in repaying any Overdraft Facilities or in meeting any payment to the Bank arising from the Overdraft Facilities.
2.	OD Protection and other Unsecured Overdraft Facilities
	The Bank may grant, revise (including, without limitation, varying any predesignated limit) or cancel OD Protection or other Unsecured Overdraft Facilities at its discretion.
3.	Secured Overdraft Facility
	Any Secured Overdraft Facility granted by the Bank to the Customer is subject to the following conditions:
	(a)	the maximum amount of the Secured Overdraft Facility shall be the aggregate of the value of each of the assets to be charged to the Bank for the purpose of securing the Secured Overdraft Facility multiplied by the applicable Discount Factor; applicable Discount Factor;
	(b)	the Bank shall not be obliged to make available the Secured Overdraft Facility unless and until all security and/or other documents in the form required by the Bank have been executed by the Customer or any other person and all the Secured Assets have been properly charged and transferred to the Bank or its nominee to the Bank's satisfaction; and
	(c)	the Bank may prescribe from time to time the types of assets acceptable to the Bank as security for the Secured Overdraft Facility and the Discount Factor applicable to each type of assets.
4.	Security over the Secured Assets
	4.01	Any security over the Secured Assets in favour of the Bank is a continuing security and is in addition to, shall not be affected by and may be enforced despite the existence of any other security held by the Bank. Any restriction on the right of consolidating securities shall not apply to any security over the Secured Assets in favour of the Bank.
	4.02	The Bank shall be entitled to retain the document under which any security is created for such period as the Bank may certify to the Customer to be appropriate in order to protect the interests of the Bank in respect of the Secured Moneys.
	4.03	If the Customer creates or purports to create any security (whether fixed or floating) over all or any of the Secured Assets or if any person levies or attempts to levy any form of process against all or any of the Secured Assets, the charge created by the security over the Secured Assets in favour of the Bank, to the extent that it may be a floating charge, shall automatically and without notice operate as a fixed charge instantly such event occurs.
	4.04	The Customer undertakes:
		(a)	that the Secured Moneys shall not at any time exceed the value of the Secured Assets multiplied by the applicable Discount Factors. Any excess shall be forthwith eliminated by repaying the relevant amount of cash or by depositing with the Bank additional assets of such nature and value acceptable to the Bank;
		(b)	that the Secured Assets are and shall be in the sole beneficial ownership of the Customer, free from encumbrances and claims except pursuant to any security in favour of the Bank;
		(c)	that the Bank may hold all or any of the Secured Assets at any of its offices and transfer the same between such offices;
		(d)	to deposit with the Bank or to its order all documents which evidence the Secured Assets and, if applicable, duly completed transfer documents in favour of the Bank;
		(e)	to pay all calls and make all other payments in respect of any securities comprising the Secured Assets when due;
		(f)	not to or attempt to withdraw, assign, transfer or otherwise deal with the Secured Assets except in the Bank's favour or as directed by or with the consent of the Bank in writing; and
		(g)	not to take any action which might prejudice the value of the Secured Assets and/or the effectiveness of the security over the Secured Assets.
	4.05	The Bank is irrevocably authorized, without prior notice to or consent from the Customer, to take such steps as it may consider expedient to enable it to exercise or preserve its powers and rights in connection with any security over the Secured Assets including, without limitation, the following:
		(a)	to appoint any other person as its nominee or agent to hold and to keep possession and control of any of the Secured Assets, to register any of the Secured Assets in the name of the Bank, its nominee(s) and/or agent(s) and to establish any account with such person for those purposes, but the Bank shall not be liable for any act, omission, negligence or default of any such person provided that the Bank has exercised such care in appointing such person as it would employ for its own business;
		(b)	to direct any nominee or agent of the Bank having custody or control of any of the Secured Assets (whether as nominee, manager or otherwise) to deal with such Secured Assets in such manner as the Bank may consider fit;
		(c)	to exercise or procure the exercise of voting and other rights attaching to the Secured Assets, so far as legally permissible, as if the Bank were the sole legal and beneficial owner;
		(d)	to determine whether or not to take any action which may be called for in respect of any securities comprising the Secured Assets as to any call, subscription, offer, acquisition, ownership, exchange, conversion, redemption or any other matter;
		(e)	to return to the Customer securities which may not have the same identification as the securities comprising the Secured Assets originally held by, deposited with, received by, transferred to or registered in the name of the Bank or any nominee or agent of the Bank; and
		(f)	to debit all costs, charges and expenses (including any stamp duty, registration fees and other duties and expenses) of reasonable amount and reasonably incurred by the Bank in perfecting, preserving and/or enforcing any security over the Secured Assets or in the exercise or purported exercise of any of its powers and rights in connection with such security from any one or more of the accounts of the Customer with the Bank in any currency;
	4.06	The Customer may not assign or transfer any rights or obligations of the Customer under the security over the Secured Assets. The Bank may assign any of its rights under the security over the Secured Assets to a person in whose favour it has made an assignment of all or any part of the Secured Overdraft Facility.
	4.07	The Customer undertakes and agrees that any power of attorney given by the Customer in favour of the Bank in connection with the Bank's exercise of its powers and rights under these Terms and Conditions is given to secure the performance of the obligations and liabilities of the Customer under these Terms and Conditions.
5.	Enforcement of Security
	5.01	If the Customer has failed to pay any of the Secured Moneys when due, or is in default under any of the terms of the security over the Secured Assets, or is unable or admits to being unable to pay the debts of the Customer as they become due, or is subject to any proceedings in or analogous to insolvency, bankruptcy or liquidation, or if legal process is applied for, levied or enforced against the Secured Assets or any other assets of the Customer, the Bank shall be entitled to enforce the security over the Secured Assets and may, without demand, notice, legal process or any other action with respect to the Customer, retain or apply any cash comprising the Secured Assets and realize, sell or otherwise dispose of all or some of the Secured Assets for its own benefit in or towards settlement of the Secured Moneys at any time and in any way it deems expedient, free from any restrictions and claims and the Bank shall not be liable for any loss arising out of such retention, application, realization, sale or disposal.
	5.02	A certificate of balance signed by any duly authorized officer of the Bank shall be conclusive evidence against the Customer of the amount of the Secured Moneys owing at any time.
	5.03	The Bank may, at any time, continue any existing account and open any new account in the name of the Customer and no subsequent transactions, receipts or payments involving such new accounts shall affect the liability of the Customer.
6.	Use of Overdraft Facilities and Application of Moneys
	6.01	If more than one type of the Overdraft Facilities are made available to a Sub-account, such Overdraft Facilities shall be made available and used in the following order upon exhausting each type in such order:
		(a)	Secured Overdraft Facility;
		(b)	Unsecured Overdraft Facility other than OD Protection; and
		(c)	OD Protection.
	6.02	Any overdraft by the Customer exceeding the aggregate amount granted available by the Bank to the Customer pursuant to any Overdraft Facilities shall be deemed to be unauthorized overdraft. The Customer shall pay interest on any unauthorized overdraft on demand from the date on which it was incurred up to the date of actual repayment (before and after judgment) at such rate over the Bank's besting lending rate as the Bank may from time to time prescribe at its sole discretion. Such interest shall be debited from the relevant Sub-account and shall form part of the principal due to the Bank and bear interest accordingly.
	6.03	All moneys credited to any Sub-account to which any of the Overdraft Facilities is made available shall be applied by the Bank in or towards repayment in the following order:
		(a)	all sums other than principal or interest in respect of the Overdraft Facility in question which may be owing to the Bank;
		(b)	the Overdraft Facility in question (whether the same is due and payable or not);
		(c)	any sums arising from or in connection with other Transactions or Services which may be owing to the Bank.
	6.04	If more than one type of the Overdraft Facilities are made available to a Sub-account, all moneys credited to such Sub-account shall be applied by the Bank in or towards repayment in the following order:
		(a)	all sums other than principal or interest in respect of such Overdraft Facilities which may be owing to the Bank;
		(b)	OD Protection;
		(c)	Unsecured Overdraft Facility other than OD Protection;
		(d)	Secured Overdraft Facility;
		(e)	any sums arising from or in connection with other Transactions or Services which may be owing to the Bank.
7.	Payments and Interests
	7.01	The Customer shall be liable for all overdrafts and/or advances arising out of or in connection with all or any of the Overdraft Facilities and shall repay the same to the Bank on demand in one lump sum together with interest thereon on a day to day basis from the date of advance to the date of actual repayment (before and after judgment) at such rate as the Bank may determine at its sole discretion from time to time, calculated on the basis of the actual number of days elapsed and payable monthly in arrears on such day of each calendar month or at such other time as the Bank may specify in accordance with its usual practice by direct debit to the Current Account or such other Sub-account as the Bank and the Customer may agree and shall become part of the principal due to the bank and bear interest accordingly.
	7.02	No payment to the Bank under the security over the Secured Assets pursuant to any judgment, court order or otherwise shall discharge the obligation of the Customer in respect of which it was made unless and until payment in full has been received in the currency in which it is payable under the security over the Secured Assets and, to the extent that the amount of any such payment shall, on actual conversion into such currency at the Exchange Rate, fall short of the amount of the obligation expressed in that currency, the Customer shall be liable for the shortfall.
	7.03	Any moneys paid to the Bank in respect of any Secured Moneys may be applied in or towards satisfaction of the same or placed to the credit of such account as the Bank may determine with a view to preserving its rights to prove for the whole of the Secured Moneys.
	7.04	If any moneys paid to the Bank in respect of any Secured Moneys are required to be repaid by virtue of any law relating to insolvency, bankruptcy or liquidation or for any other reason, the Bank shall be entitled to enforce the security over the Secured Assets as if such moneys had not been paid.
	7.05	Without prejudice to the generality of Clause 7.01 of this Part, interest for any Secured Overdraft Facility shall be charged as follows:
		(a)	any portion of the outstanding amount of the Secured Overdraft Facility which is secured by Hong Kong dollar term deposits shall be charged at the higher of (i) the prescribed margin over the average Hong Kong dollar term deposit rate within the Hong Kong dollar term deposit portfolio under the Integrated Account and (ii) the prescribed margin over the Bank's best lending rate;
		(b)	any portion of the outstanding amount which is secured by foreign currency deposits, Gold or securities shall be charged at such margin as the Bank may prescribe in respect of each type of assets over the Bank's best lending rate; and
		(c)	any remaining portion of the outstanding amount shall be charged at the rate for the time being chargeable for unauthorized overdraft.
	7.06	The Bank may vary its best lending rate at any time without prior notice. The Bank may vary the prescribed margin upon giving the Customer at least 30 days' prior notice unless such variation is beyond the Bank's control in which case the Bank shall give the Customer such period of notice as is reasonable in the circumstances. Any variation shall be binding on the Customer if the Customer continues to use the relevant Overdraft Facilities or if any part of such Overdraft Facilities remains outstanding after the effective date of variation.
	7.07	If the Customer fails to repay any indebtedness on the applicable due date, the Customer shall pay default interest on the overdue amount on demand from the due date up to the date of actual repayment (before and after judgment) at such rate over the Bank's best lending rate as the Bank may specify at its sole discretion from time to time. Such default interest shall be debited from the relevant Sub-account and shall form part of the principal due to the Bank and bear interest accordingly.