Terms and conditions for current and deposit accounts
We have tried to make this Agreement easier to read and understand by adding headings to the various sections. These headings have been inserted for convenience only and do not affect the legal construction or interpretation of this Agreement.
These terms and conditions are effective from and including 12 March 2007.
Unless otherwise stated, these terms and conditions apply to all Current Accounts and Deposit Accounts. Where necessary, we have indicted those terms and conditions which apply only to certain accounts.
1. Definitions
2. Your account
3. Purpose of the account
4. Running your account
5. Interest on money in your account
6. Borrowing
7. Fees and charges
8. Changes to Terms and Conditions
9. Termination/closing of accounts
10. Liability for losses
11. Force Majeure
12. Other terms
1. Definitions
Within this Agreement, “you” or “your” means the Business and “we”, “us” or “our” means the Bank.
“Agreement” means the accompanying application form and these terms and conditions.
“Authorised Debit Interest Rate” means the agreed rate of interest charged on your account for authorised overdraft borrowing as advised to you by your relationship manager and confirmed in your most recent Facility Letter (where appropriate).
“Base Rate” means the Lloyds TSB Base Rate as displayed in our branches and on this website and confirmed in your most recent Facility Letter (where appropriate). This may be varied at our sole discretion.
“Business” means the entity that completes the accompanying application form.
“Credit Interest Rate” means the rate of interest paid on your account as displayed in our branches and on this website or such other rate as your relationship manager may agree. The rate will appear on your bank statements.
“Current Account Charging Cycle” means the monthly, quarterly or half-yearly charging cycle relating to the payment of interest and charges on your Current Account as agreed with us.
“Current Account” means any current account including the Corporate Current Account and Corporate Special Account – Current Account Version and “Current Accounts” means all of them.
“Deposit Account” means any deposit account including the Corporate 30 Day Notice Account, Corporate Call Account, Corporate Plus Account and Corporate Special Account – Call Account Version and “Deposit Accounts” means all of them.
“Facility Letter” means the document detailing specific terms and conditions relevant to an overdraft or other borrowing agreed by your relationship manager (as amended, varied or supplemented from time to time).
“Trading Account” means an account used by the Business for day to day banking transactions.
“Uncleared Balance” means any balance which is still to be cleared through the clearing cycle after being paid into your account.
“Unauthorised Debit Interest Rate” means the standard unauthorised debit interest rate charged on your account for unauthorised overdraft borrowing as displayed in our branches and on this website or such other rate as your relationship manager may agree in relation to your account and confirm in your most recent Facility Letter (where appropriate).
2. Your account
2.1 This Agreement is with the relevant LTSB Bank as determined by the branch where your account is held.
2.2 The Lloyds TSB Banks (“the Bank”) are:
Lloyds TSB Bank plc, 25 Gresham Street, London, EC2V 7HN; and
Lloyds TSB Scotland plc, Henry Duncan House, 120 George Street, Edinburgh, EH2 4LF.
3. Purpose of the account
3.1 The Current Accounts may be used as a Trading Account.
The Deposit Accounts must not be used as a Trading Account without the permission of your relationship manager.
3.2 There is no requirement to open or maintain a Current Account to operate a Deposit Account.
4. Running your account
4.1 In relation to the Corporate 30 Day Notice Account only, you should provide 30 days notice of withdrawals. All notices of withdrawals should be sent in accordance with clause 12.5 below, except that they should not be sent via the Secure E-mail Service or the Cash Management Service or the Payments Services, being services available to customers through our website.
4.2 We will provide you with regular statements of account to help you manage your finances. You agree to examine your bank statements, confirmations and communications sent to you within a reasonable time after receiving them and to promptly advise us of any apparent mistake or discrepancy.
4.3 If we need to investigate a transaction on your account we may require you to co-operate with us and the police, if we need to involve them. In some cases, we will need you to give us confirmation or evidence that you have not authorised the transaction.
4.4 In certain circumstances we may refuse to accept a payment into the account.
4.5 Subject to any legal or regulatory requirements which may apply we are authorised to act upon any instruction, agreement or arrangement that is in accordance with this Agreement without enquiring about its purpose, or the circumstances in which it was given, or about the disposition of any proceeds. Therefore if any one authorised signatory is authorised to carry out any transaction or other business with us and to operate any of your accounts, that person will for example be able to withdraw any money in any of your accounts or set up any overdrafts (which may be without the knowledge of the (other) authorised signatories). You will be responsible to us for all or any of the debts on your account(s).
5. Interest on money in your account
5.1 Until further notice, interest is calculated on a daily basis on cleared credit balances at the Credit Interest Rate.
5.1.1 Interest earned on your Deposit Account will be credited to your account on the dates and frequency agreed with us.
5.1.2 Interest earned on your Current Account will be credited to your account in line with your Current Account Charging Cycle.
5.2 Interest is normally paid at the net rate, but it may be paid at the gross rate if, for tax purposes, the account falls within an exempt category or you qualify to receive gross interest. We reserve the right, at our discretion, to pay interest at the net rate.
5.3 In relation to the Corporate Special Account – Current Account Version and Corporate Special Account – Call Account Version only:
5.3.1 The margin on the account reflects the overall level of balances seen or anticipated over a period of time and if this changes, we reserve the right to renegotiate the margin, either up or down to reflect this. Any changes to the margin will be agreed with you in writing.
5.3.2 If you are unable to agree a new margin with your relationship manager, you will be able to switch to another account or close the account without having to give notice or pay any extra charges or interest.
5.4 Where your credit interest rate is linked to our managed rate, any change to this rate will be effective from the first working day of the month following a change in Base Rate.
5.5 In relation to the Corporate 30 Day Notice Account, if you fail to give the required notice of withdrawal referred to in clause 4.1 above, you will lose 30 days credit interest on the amount withdrawn at the prevailing Credit Interest Rate payable at the time.
5.6 The standard rates of credit interest and the balances in relation to which such rates are payable are displayed in our UK branches and on this website. The standard rates may be varied at our sole discretion at any time. Any such variation will become effective immediately. We will put notices about our standard rate changes in our branches and in the newspapers we usually use which include the Daily Telegraph, The Times, and Daily Record (Scotland). We will also update our website within three working days of the change. You can contact your relationship manager to check your interest rates and to get details of interest rate changes at any time.
6. Borrowing
6.1 Borrowing is not permitted on the Corporate 30 Day Notice Account.
6.2 In relation to the Current Accounts, Corporate Call Account, Corporate Plus Account and Corporate Special Account – Call Account Version only:
6.2.1 You should only overdraw your account within an overdraft limit agreed in advance with your relationship manager. The overdraft limit will be confirmed in writing by your relationship manager. We normally confirm the limit on an annual basis if the borrowing facility is to continue, or at such other time that the limit is reviewed with our agreement.
6.2.2 We may at our sole discretion permit you to exceed any agreed overdraft limit or overdraw your account where an overdraft limit has not been agreed in advance with your relationship manager. Such amounts will constitute unauthorised borrowing and may incur unauthorised borrowing interest and unauthorised borrowing fees.
6.2.3 An arrangement fee may be charged for the setting up and renewal of an overdraft facility. This will be advised to you by your relationship manager at the time of your request and confirmed in writing in your most recent Facility Letter. The fee is not refundable if the facility is not used.
6.2.4 Charges may apply if your authorised overdraft is secured. These will be advised to you by your relationship manager at the time of your request and confirmed in writing. These charges are not refundable if the facility is not used.
6.2.5 Authorised borrowing will incur interest at the Authorised Debit Interest Rate on the total amount outstanding, including any Uncleared Balance, within your agreed overdraft limit.
6.2.5.1 Such interest incurred on your Current Account will be debited to your account in line with your Current Account Charging Cycle.
6.2.5.2 Such interest incurred on your Corporate Call Account, Corporate Plus Account or Corporate Special Account – Call Account Version will be debited to your account on the dates and frequency agreed with us.
6.2.6 Unauthorised borrowing will incur interest at the Unauthorised Debit Interest Rate and will be charged when the overdrawn balance on your account, including any Uncleared Balance, exceeds the agreed overdraft limit or alternatively when the account goes overdrawn (including any Uncleared Balance) when there is no agreed overdraft limit.
6.2.6.1 Such interest incurred on your Current Account will be debited to your account in line with your Current Account Charging Cycle.
6.2.6.2 Such interest incurred on your Corporate Call Account, Corporate Plus Account or Corporate Special Account – Call Account Version will be debited to your account on the dates and frequency agreed with us.
6.2.7 Unauthorised borrowing fees will be incurred if your account exceeds the agreed overdraft limit or goes overdrawn where there is no agreed overdraft limit. Details of the standard unauthorised borrowing fees are available from this website and from your relationship manager.
6.3 Nothing in this Agreement restricts our right to refuse to allow any overdraft or other borrowing or increase in any overdraft or other borrowing.
6.4 We will put notices about our Base Rate changes in our branches and in the newspapers we usually use which include the Daily Telegraph, The Times and Daily Record (Scotland). We will also update the Our interest rates section of this website within three working days of the change. You can contact your relationship manager to check the Base Rate and to get details of Base Rate changes at any time.
7. Fees and charges
7.1 We will charge you for account transactions by applying the tariff relevant to your account as agreed with your relationship manager when the account is opened or as subsequently agreed from time to time. A copy of this tariff will be provided by your relationship manager. Details of our standard tariff are available on the Services and prices section of this website. You may request a copy of your tariff at any time from your relationship manager.
7.2 Account transaction charges incurred in respect of your Current Account will be debited to your account in line with your Current Account Charging Cycle.
7.3 Account transaction charges incurred in respect of your Deposit Account will be debited to your account on the dates and frequency agreed with us.
7.4 We reserve the right to pass onto you other charges to cover additional work involved in monitoring your account. You will be pre-notified of these charges by your relationship manager.
7.4.1 Unless we tell you or you request otherwise, we will send you pre-notification of account transaction charges and debit interest on your bank statement 14 days in advance of them being debited to your account.
7.5 If we increase any of our account transaction charges, or introduce a new one, we will contact you direct at least 30 days before the change takes effect. In these circumstances, you may within 60 days switch your account or close it without having to pay any extra charges or interest for doing so.
7.6 We will tell you the charge for any other service or product before we provide that service or product, and at anytime you ask.
8. Changes to Terms & Conditions
8.1 We may amend any of our terms and conditions at our discretion. Typically (but not exclusively) to:
8.1.1 comply with legal, fiscal or regulatory changes;
8.1.2 rectify errors, omissions, inaccuracies or ambiguities; and/or
8.1.3 take account of any corporate reorganisation within the Lloyds TSB group of companies, and reflect alterations in the scope and nature of the service which we are able to provide to you under this application in accordance with our systems’ capabilities and routines and having regard to market practice and overall customer demand.
8.2 If we amend these terms and conditions, and the change is to your disadvantage we will give you 30 days’ written notice before we make the change. At any time up to 60 days from the date of the notification you may, without notice switch your account or close it without having to pay any extra charges or interest for doing so. If a change is not to your disadvantage we may make a change immediately and tell you about it in writing within 30 days.
8.3 If we have made a major change or a number of minor changes in any one year, we will give you a copy of the new terms and conditions or a summary of the changes.
9. Termination/closing of accounts
9.1 We reserve the right not to open an account or to require an account to be closed without giving a reason. This applies even if closure of the account results in a loss of tax benefits, and we will not be liable to compensate you for any loss of tax benefits or any other consequential or indirect losses whatsoever and howsoever arising.
9.2 In normal circumstances we will not close your account without giving you at least 30 days’ notice. However, examples of when we may close an account without notice include (but are not limited to):
9.2.1 improper use of the account;
9.2.2 threatening or abusive behaviour towards staff;
9.2.3 to comply with legal, fiscal or regulatory changes; and/or
9.2.4 any other circumstances we reasonably feel requires the account to be closed without notice.
9.3 Any closure of your account will not release you from any liability in respect of sums owing to us or from any previous liability or indemnity for any act performed by us in accordance with instructions previously received from you or an authorised signatory.
10. Liability for losses
10.1 We will only be liable for any reasonable losses, costs and expenses incurred by you which arise directly from our breach of contract or negligence in relation to the account and if, in the ordinary course of events and with the knowledge we had, we might reasonably have expected such loss to result directly from our breach or negligence. Our liability pursuant to this clause 10.1 will be limited to the monetary amount of the relevant transaction in relation to the account pursuant to which our breach of contract or negligence occurred.
10.2 We will not be liable to you for any consequential or indirect loss, loss of profits, loss of business, loss of goodwill or any form of special damages arising from the operation of the account whether such liability was reasonably foreseeable or not and whether or not we have been advised of the possibility of such loss being incurred.
10.3 We will not be liable to you for any fraud, mistakes on your account, consequential or indirect loss, loss of profits, loss of business, loss of goodwill if you use a third party aggregation service.
10.4 Nothing in the clause 10 excludes our liability for fraudulent misrepresentation by us, our servants or agents or our liability for death or personal injury caused by our negligence or the negligence of our servants or agents.
11. Force Majeure
11.1 Force Majeure means an event beyond the reasonable control of the affected party affecting its ability to perform any of its obligations under this Agreement (other than as to payment) which does not relate to its fault or negligence. Force Majeure includes, for example and without limitation, acts of God, expropriation or confiscation of facilities, any form of war, hostilities, rebellion, terrorist activity, local or national emergency, sabotage or riots, and floods, fires, explosions or other catastrophes.
11.2 A party shall not be responsible for failure to carry out any of its duties under this Agreement (other than as to payment) to the extent to which such failure is caused by Force Majeure, provided that, the affected party:
11.2.1 has taken all reasonable steps to prevent and avoid the Force Majeure;
11.2.2 carries out its duties to the best level reasonably achievable in the circumstances of the Force Majeure;
11.2.3 takes all reasonable steps to overcome and mitigate the effects of the Force Majeure as soon as reasonably practicable;
11.2.4 on actually becoming aware of the Force Majeure, as soon as practicable informs the other party that something has happened which is a Force Majeure, giving details of the Force Majeure, which services have been affected, the steps being taken to overcome and mitigate it, and a reasonable estimate of the period during which the Force Majeure will continue and confirming this information to the other party in writing as soon as reasonably practicable; and
11.2.5 informs the other party as soon as possible when the Force Majeure has stopped.
12. Other terms
12.1 This Agreement is governed by the laws of England if your account is with Lloyds TSB Bank plc in England and Wales, or by the laws of Scotland if your account is with Lloyds TSB Scotland plc.
12.2 These terms and conditions apply to the Current Accounts and Deposit Accounts only. In the event of any overlap and/or inconsistencies between these terms and conditions and any other terms and conditions relating to any of our other products and services, the terms and conditions relating to such other products and services will take precedence in respect of those products and services.
12.3 No transaction carried out under this Agreement shall confer any benefit on or be enforceable by any party other than you or us.
12.4 Please make sure you advise your relationship manager as soon as possible if the nature or your business changes or if you change your:
- business name,
- address
- phone number,
- e-mail address.
In addition, please advise your relationship manager of the following:
- details of new directors when appointed,
- changes to company ownership structure.
12.5 Any notice (other than notification on changes to interest rates referred to in clauses 5.6 and 6.4 above) to be given by either party in relation to the account shall be written, sent by facsimile, first class post or otherwise delivered to the other party. The address for any such notice for us will be your Lloyds TSB Corporate office until further notice. The address for any such notice for you will be the address given on the accompanying application form. Either party may change address for communication by giving 7 days notice in writing to the other party.
12.6 We aim to provide the highest level of customer service possible. However if you experience a problem we will always seek to resolve this as quickly and efficiently as possible. A copy of our complaint procedures is available on request from your relationship manager or any of our Corporate Banking offices. You can also find details on the How to voice your concerns section of this website.
12.7 You should let us know as soon as possible if your business is experiencing financial difficulties. We will always seek to help you and develop a repayment plan with you.