Hang Seng e-Banking

HANG SENG BANK LIMITED INTEGRATED ACCOUNT
TERMS AND CONDITIONS

PART VIII
TERMS AND CONDITIONS RELATING TO GOLD ACCOUNT

Gold Account Opening Formalities

1.01

The Customer shall execute such document(s) as the Bank may require for opening and operating the Gold Account.

1.02

The Gold Account will be opened when the Customer's initial purchase order is processed and thereafter all transactions in Gold for the Customer shall be on the Gold Account.

1.03

The Customer may, from time to time, on the Gold Account purchase Gold from the Bank and/or sell Gold to the Bank.

1.04

Any balance of Gold for the time being purchased but not yet resold by the Customer shall be recorded in the Gold Account as owing by the Bank to the Customer.

Purchase of Gold

2.01

The Bank will sell Gold to the Customer pursuant to purchase orders from the Customer and shall record in the Gold Account the quantity of Gold so purchased as owing by the Bank to the Customer.

2.02

Each purchase order shall be irrevocable and shall be in such form as the Bank may prescribe and shall be:

(a)

for not less than one Mace of Gold;

(b)

if more than one Mace of Gold, for a quantity which is a whole multiple of one Mace.

2.03

The price per Mace of Gold at which each purchase will be made by the Customer shall be the selling price as quoted by the Bank to the Customer at the time of receipt by the Bank of the purchase order and recorded on the Customer's receipt. The selling price so quoted shall be determined by the Bank taking into account all factors it deems relevant including the prevailing world and local market conditions for Gold, the exchange rate between United States dollars and Hong Kong dollars and the gold fineness of the troy ounce, Tael and Mace.

2.04

A purchase order will be accepted by the Bank only if placed by the Customer on a Business Day. A purchase will be made during the Business Day on which the purchase order is received provided that the purchase order is received by the Bank within its normal business hours as the Bank may from time to time prescribe. Any purchase order received by the Bank after such hours shall be deemed to have been received on the next Business Day.

2.05

Settlement of a purchase shall be completed by (a) an immediate direct debit of any one or more accounts of the Customer with the Bank in any currency or (b) full payment by the Customer in cash, by cheque or by cashier's order on the same Business Day on which the purchase order is fulfilled.

2.06

If there are insufficient funds in such accounts or if the amount of cash, cheque or cashier's order tendered in settlement of a purchase order is insufficient to purchase the amount of Gold ordered, the Bank shall be entitled not to fulfil such order or to fulfil such order for a lesser amount equal to the funds available or the amount tendered.

2.07

Without prejudice to Clause 2.06 of this Part, if the Bank makes a purchase against any cheque prior to collection, the Bank shall be entitled to be reimbursed on demand immediately in the absence of collection and no default interest or any other fees and charges shall be payable by the Customer. If the Customer fails so to reimburse the Bank, the Bank may, at any time without notice, sell or convert into money the Gold purchased at the purchase price determined by the Bank in accordance with Clause 3.03 of this Part to satisfy the Customer's liability. For this purpose, to the extent that the amount converted shall fall short of the Customer's liability, the Customer shall be liable for the shortfall but if the amount converted shall exceed the Customer's liability, the Bank shall be entitled to such excess.

Sale of Gold

3.01

The Bank will purchase Gold from the Customer pursuant to sale orders from the Customer and shall record in the Gold Account the quantity of Gold so sold.

3.02

Each sale order shall be irrevocable and in such form as the Bank may prescribe and shall be:

(a)

for not less than one Mace of Gold;

(b)

if more than one Mace of Gold, for a quantity which is a whole multiple of one Mace.

3.03

The price per Mace of Gold at which each sale will be made by the Customer shall be the purchase price as quoted by the Bank to the Customer at the time of sale and recorded on the Customer's receipt. The purchase price so quoted shall be determined by the Bank taking into account all factors it deems relevant including the prevailing world and local market conditions for Gold, the exchange rate between United States dollars and Hong Kong dollars and the gold fineness of the troy ounce, Tael and Mace.

3.04

A sale order will be accepted by the Bank only if placed by the Customer on a Business Day. A sale will be made during the Business Day on which the sale order is received provided that the sale order is received by the Bank within its normal business hours as the Bank may from time to time prescribe. Any sale order received by the Bank after such hours shall be deemed to have been received on the next Business Day.

3.05

The proceeds of a sale shall be paid to the Customer on the Business Day on which the sale order is fulfilled and shall be paid (a) by way of direct credit to any one or more accounts of the Customer with the Bank in any currency or (b) in cash or (c) by any other means as the Bank agrees.

3.06

The maximum amount of Gold that can be sold by the Customer on the Gold Account will be limited to the actual balance of the Gold for the time being recorded in the Gold Account as owing by the Bank to the Customer so that no Gold shall be oversold by the Customer and the Gold Account shall not be allowed to show any oversold balance.

Customer's Acknowledgments and Undertakings

The Customer acknowledges and undertakes that:

(a)

the price of Gold is volatile and that its value may go down as well as up;

(b)

the Gold Account does not represent a deposit of money and provides neither yield nor interest;

(c)

the Customer has no right to delivery of physical Gold in Hong Kong or elsewhere;

(d)

the Bank has no duty or liability to appropriate, set aside and/or allot any physical Gold for or to the Customer and/or the Gold Account;

(e)

the Bank shall not be deemed to be a bailee or trustee of the Customer in relation to any Gold recorded in the Gold Account as owing by the Bank to the Customer;

(f)

the Bank's liability under these Terms and Conditions for any Gold purchased by the Customer and recorded in the Gold Account as owing by the Bank to the Customer shall be absolutely discharged if the Bank purchases such Gold from the Customer in accordance with these Terms and Conditions and pays the proceeds to the Customer in accordance with Clause 3.05 of this Part;

(g)

the operation of the Gold Account by the Customer shall be restricted to purchases from and sales to the Bank of Gold on the Gold Account and, if the Customer wishes to close the Gold Account, the Customer shall only be entitled so to do by selling to the Bank all the Gold recorded in the Gold Account as owing by the Bank to the Customer at the purchase price determined by the Bank in accordance with Clause 3.03 of this Part and by receiving the proceeds in accordance with Clause 3.05 of this Part;

(h)

the Bank is authorized to disclose to any regulatory authority, governmental agency, exchange or professional body the details of the Gold Account and all transactions effected by the Bank in connection with the Gold Account;

(i)

no gold bullion shall be delivered to the Bank physically for deposit to the Gold Account;

(j)

except for the Gold recorded in the Gold Account as owing by the Bank to the Customer, the Bank shall have no duty or liability to purchase Gold from the Customer; and

(k)

the Bank shall be entitled to refuse any purchase order and/or sale order and/or not to quote any price in any period during which the Chinese Gold and Silver Exchange in Hong Kong or any gold exchange in Hong Kong shall suspend trading in Gold for any reason.

Termination and Closure of Gold Account

In the event of the termination and closure of the Gold Account, the Bank shall sell all the Gold then recorded in the Gold Account as owing by the Bank to the Customer at the purchase price determined by the Bank in accordance with Clause 3.03 of this Part and the proceeds shall be paid to the Customer in accordance with Clause 3.05 of this Part.

Modifications

6.01

Insofar as the Gold Account is concerned, the Bank may modify any term or provision of these Terms and Conditions at any time and from time to time if such modification (a) is required in compliance with statutory, fiscal or other requirements prescribed by any regulatory authority or (b) does not materially prejudice the Customer's interest hereunder, does not release the Bank from any liability to the Customer hereunder in any extent and does not impose or increase any fees and charges payable by the Customer hereunder. Any such modification shall become effective on the fifth Business Day or such later date as the Bank may specify after being displayed, advertised or brought to the attention of the Customer by any other means as the Bank thinks fit and shall be binding on the Customer if the Customer does not close the Gold Account prior to the expiration of such period.

6.02

Any modification other than those referred to in Clause 6.01 of this Part which requires the prior approval of any regulatory authority can only be made with the requisite approval. The Bank shall give the Customer three months' prior notice in writing of any such modification which shall become effective on and from the expiry of such three-month period and shall be binding on the Customer if the Customer does not close the Gold Account prior to the expiration of such period.

No Fees or Charges

The Bank will not charge the Customer any fees or charges for the provision of Services in connection with the Gold Account.