General terms and conditions for issuance and use of MASTERCARD

I. BANKING CARD

I.1. Banking card is an electronic payment instrument - a plastic card on which information is recorded in electronic form, which could be used for the identification of the Cardholder, remote access to a current account and/or prearranged credit limit for performance of the following operations:

1) withdrawal of money from automated teller machines (ATM) or POS terminals, situated in offices of banks;

2) payment of goods or services at terminal devices at the point of sale (POS);

3) payment of goods and services and transfer of funds through virtual terminal devices POS at internet sites of merchants, at which it is specified that they accept payments with cards of this brand;

4) payment of utilities through ATM;

5) payment ordered by post/telephone for hotel, air-plain tickets and rent-a-car reservations;

6) information and other payment and non-payment operations like:

- change of PIN at an ATM in the country;

- information through ATM in the country about the last five transactions, performed by the banking card;

- information about the available funds on the account/credit limit available for operations with the banking card.

In case of technical developments the Bank could offer new services aссessible through a banking card. On the other hand in the case of a change in the policy of the merchants or the utilities providers some of the above specified possibilities could be restricted.

I.2. The banking card shall be the property of the Bank.

I.3. For its corporate clients the Bank issues the following MasterCard banking cards:

- MasterCard debit card;

- MasterCard deferred debit card.

I.4. Debit cards provide to the Cardholders remote access to a specified banking account.

Deferred debit cards provide to the Cardholders remote access to a credit limit made available by the Bank.

I.5. Cards of the MasterCard brand could be used both in and out of the country on terminal devices on which the brand is indicated.

I.6. If the Client so prefers more than one cards and cards from more than one brand could be issued for access to the same account.

II. THE AGREEMENT

II.1. The banking cards available for corporate clients are issued to members of the stuff of the Client or other persons, designated by him, on the request of the Client and the Cardholder.

II.2. To have cards issued the Client has to have a current banking account with the Bank. The currency of the account should be BGN, USD or EUR.

II.3. For the issuance of cards two agreements have to be signed:

- a Frame Agreement between the Bank and the Client, whereby the Client specifies the names of the Cardholders, authorized to have access through banking cards to the account(s) of the Client or to the credit limit, approved for the Client;

- an Individual Agreement between the Bank, the Client and each individual Cardholder to specify the obligations of the Cardholders themselves and the part of the credit limit, to which each Cardholder shall have access.

Both types of agreements shall be subject to the present General Terms and Conditions.

III. ISSUANCE AND DELIVERY OF THE BANKING CARD

III.1. The Bank shall issue each banking card not later than 10 days following the date of the Individual Agreement, unless the Individual Agreement provides otherwise.

III.2. The Card shall be delivered to the Cardholder – personally or to an attorney authorized by the Cardholder in writing in front of a banking officer or in front of a notary. Immediately after receiving the Card the Cardholder has to sign it on its back.

III.3. Immediately upon delivery of the card, the Bank informs the card operator/the authorization system to activate the card.

The Cardholder could effectively use the card only after its activation.

IV. IDENTIFICATION

IV.2. To perform payment and other operations a holder of a banking card of the MasterCard brand shall use the following identification techniques:

- at ATM terminals – through entering a PIN;

- at POS terminals – by signing the receipt for the transaction. The merchant compares the signature on the receipt with the signature on the back side of the card. The merchant might also require to check an identity document. In case of technical developments the identification of POS might also require PIN identification.

- when using the card on technical devices different from ATM or POS (for instance through the internet), the identification shall be made through the means, specified by the respective device – such as user name, password, CVC code, card number etc.

IV.3. The Bank shall also give to the Cardholder his/her PIN (personal identification number) – in closed and sealed envelope. The PIN shall be received by the Cardholder only personally, even if the card itself was received by an attorney. In case the envelope is damaged, the Cardholder should immediately make objections.

IV.4. The Cardholder could change his PIN on ATM, situated on the territory of the country.

IV.5. Shall the Cardholder forget his PIN, he shall inform the Bank. In such a case the Bank shall issue another PIN.

IV.6. A PIN could only be used with the card it was generated for.

IV.7. The Cardholder shall keep his PIN separately from the banking card in a way to prevent its disclosure to third parties. Having received his PIN, the consequences of its disclosure shall be the exclusive responsibility of the Cardholder.

V. USE OF THE CARD

V.1. The Cardholder shall:

1) use the card only personally and in compliance with the conditions for its issuance and use and to exercise due care to protect it;

2) to use the card only for operations permitted by law;

3) to protect carefully its PIN and to undertake all necessary measures to prevent its disclosure to third parties;

4) to immediately inform the Bank and the operator of the card system of the following:

a) destruction, theft, dispossession in any other way, counterfeiting or use of the banking card in other illegal way as well as disclosure of the PIN to third parties;

b) performance of an operation with the banking card which is not authorized by the Cardholder,

c) any mistake or irregularity in keeping his account, estimated by him;

5) not to write his PIN in a way to make it possible for third parties to get knowledge of it, incl. upon the banking card or upon any other object carried together with the banking card.

6) excess of the transaction or credit limits.

V.2. The Cardholder shall have the right to withdraw cash and give payment instructions through the banking card only up to the limits, estimated in the individual agreement for the different types of devices.

The Client could instruct the Bank to amend the limits for any of the Cardholders. In this case it is the Client who shall inform the Cardholder for the new limits.

To change the applicable limits the Bank should inform the Client and the Cardholder in writing. If the Client does not object in 30 days following receipt of the notification, the amendment becomes effective.

In the absence of a provision to the contrary the following limits shall apply:

V.3. Payments could only be made:

- by a debit card – up to the available amount on the specific current account. The available amount is the total of the assets on the account and the agreed overdraft – authorized excess of the payments over the assets on the account;

- by a deferred debit card – up to the approved credit limit as split and specified for each Cardholder.

V.4. The Bank informs the card operation about the available amount, resp. the credit limit per card, and the limits, estimated in accordance with item V.2.

V.5. The transactions, ordered by a Cardholder, shall be immediately authorized by the authorization centre if they are within the available amount/credit limit, do not exceed the limits, estimated in accordance with item V.2. and if identification was successfully made through a PIN or by any of the other means applicable to the card.

V.6. The account of the Client shall be debited with the amount of the performed payment operations in the order of chronology in which information about each transaction was received by the Bank. The applicable value date shall be the date of receipt of such information in the accountancy system of the Bank. Non-payment operations shall be performed immediately.

V.7. In case the card is used to perform transactions in a currency other than the currency of the account/the credit limit the Bank shall perform the operation applying the exchange rate for the currency of the operation and for the currency of the account/the credit limit.

V.8. In the case of a transaction performed abroad, the amount of the transaction shall be converted at the exchange rate, applicable by the international payment system at the date of the settlement of the respective international card organization.

VI. CREDIT LIMIT

VI.1. MasterCard deferred debit cards give access to a credit limit, agreed between the Client and the Bank.

VI.2. The overall limit for a Client shall be split per card. The sum total of the card limits for all the Cardholders authorized by the Client shall be equal or less than the overall credit limit for the Client.

VI.3. All the payment transactions performed by one card during each calendar month should not exceed the card credit limit.

VI.4. Should the Client wish to restore his credit limit within the calendar month, he can prepay part or the whole of his exposure.

VI.5. The overall responsibility for the repayment of the credit is with the Client.

VI.6. The utilized credit shall be repaid by the Client not later than the 5th day of the following month.

VI.7. The Client hereby authorizes the Bank to collect from his current account in the currency of the credit the sum total of the credit utilized by the use of all cards, issued on his instructions. Collection could be made even if it triggers the account to a debit position, if the debit on the account is within the limits of an approved overdraft.

VI.8. If the utilized credit exceeds the sum total of the assets on the account and the approved overdraft, the Bank collects such part as corresponding to the available amount (assets and overdraft) and books the unpaid part as an unauthorized overdraft on the same account.

VI.9. In case that the credit is not fully repaid:

- the cards of all the Cardholders authorized by the Client are blocked;

- the credit exposure starts to accrue interest at the rate, specified in the Interest Policy of the Bank;

- the Client shall pay a fee for blocking of each card.

VI.10. The repayment of an overdue credit does not by itself restore the rights of the Client to make use of the credit limit, nor of the Cardholders to use the cards.

Restoring of such rights is in the discretion of the Bank.

VII. THEFT, DESTRUCTION, DAMAGE AND OTHER INCIDENTS WITH A CARD

VII.1. In the case of destruction, loss, theft, forging or use of the card in any illegal way, the Cardholder shall immediately inform the Bank at tel. 052/602 883, 052/ 686 216 during the working hours of the Bank, or the card operator (presently BORICA) at tel. 02/97 07 623 or 02/97 07 616. The notification could be made orally, by telephone, fax, mail etc. To inform the card operator the Cardholder has to specify the number of the card. If the notification is done orally, by phone or fax, it has to be confirmed immediately in writing.

The Bank and the card operator shall not be responsible if a notification for any of the above specified events is made by a person different from the Cardholder.

VII.2 Immediately upon receipt of such notification the Bank shall inform the card operator and block the card. The card operator blocks the card in a period of time necessary to receive the information from the Bank.

VII.3. The Bank shall not allow any transactions with the banking card and will block the card and inform in due time the card operator in any of the following events:

1) upon request of the Cardholder or the Client;

2) entering a wrong PIN three consecutive times;

3) the card is kept by the ATM, POS because of technical problem or an attempt for illegal use;

4) in case the account to which the card is linked is subject to a distraint imposed by a competent authority;

5) in case of serious breach of the obligations of the Cardholder of the Client;

6) in the case of an unpaid debt of the Client to the Bank;

7) in the case of an unauthorized overdraft.

When the reasons for blocking the card are no longer existent, the Bank de-blocks the card and informs the card operator. If the card was blocked in the case of an unauthorized overdraft, the Bank shall have the right to decide whether or not to re-activate the card.

VIII. RESPONSIBILITIES AND BURDEN OF PROOF

VIII.1. The Bank, the Client and the Cardholder agree that each person, who could identify himself by entering the PIN or by, where applicable, signature, which on its face and examined with normal care, does not appear to be different from the signature on the back side of the banking card, should be considered unambiguously authorized to perform operations by the banking card.

The Bank shall be obliged to perform the transactions instructed by such a person, while the risk of the unauthorized use of the banking card lays entirely with the Cardholder/the Client respectively.

VIII.2. The Client/Cardholder shall bear full responsibility for all obligations incurred through the use of the banking card. The Bank shall bear no responsibility whatsoever for transactions underlying the payment operations. This refers especially to any disputes between the parties to the underlying transactions.

VIII.3. The Bank, MasterCard Inc. and the card operator shall not be held responsible if any merchant refuses to accept payment with a banking card, or if the card can not be used due to some defect, interdictions (blockage), technical or communication problems.

VIII.4. Following a notification concerning a theft, loss, destruction, forging or illegal use of the card, the Bank shall be responsible for the damages caused after the expiry of the time necessary under the specific conditions to pass the information to the card operator.

VIII.5. Until the moment of such notification the Cardholder/the Client shall suffer all the damages but in any case not more than BGN 300 per card.

VIII.6. The Bank shall not be held responsible in case of damages caused willfully or due to the gross negligence of the Cardholder, as well as in the case that the Cardholder did not respect his obligations concerning the use of the card, the protection of the card and the PIN and notification obligations.

VIII.7. The Bank shall be responsible for:

1) failure to perform or to properly execute a transaction ordered by a Cardholder.

2) not-authorized transactions (other than those under item VIII.1., VIII.5. and VIII.6.) and errors and omissions in the maintenance of the account.

Such responsibility shall be vis-a-vis the Client and not vis-a-vis the Cardholder and will amount to:

1) amount of the transaction and any interest thereupon (if interest is due) – for the non-performed or improperly performed operation;

2) the amount necessary to restore the financial situation of the Client before the unauthorized transaction.

VIII.8. The Cardholder shall hand over to the Bank any banking card, found by him, which was issued by the Bank.      

VIII.9. Each notification under item VII.1. shall be entered in a special registry in a chronological order.

The registry should be kept on paper or other durable medium.

Between the parties the records in the registry shall be considered to be binding evidence.

IX. FEES AND COMMISSIONS

IX.1. The Client shall pay to the Bank fees and commissions in accordance with the Tariff of the Bank.

IX.2. The Client authorizes the Bank to collect all due fees and commissions from any of his accounts with the bank.

IX.3. Any change in the Tariff shall become applicable from the date of announcement of the amendment in the premises of the Bank.

IX.4. Transaction fees are due and are collected together with the collection of the amounts of the transactions, annual fees and commissions and the commissions due for specific events are collected immediately from the current account.

IX.5. Collection of fees and commissions shall be made in compliance with items VІ.4. - VІ.9.

Х. MATURITY OF THE BALANCE OF THE CURRENT ACCOUNT

Х.1. The unauthorized overdraft formed as a consequence of the use of the banking cards (from obligations for the payment of the credit, of fees and commissions, for transactions made in excess of the available funds on the account – with debit cards, and respectively in excess of the credit limit – with credit cards) is immediately due and accrues interest at the rate specified in the Interest Policy of the Bank.

Unauthorized overdraft is due as a total amount (capitalization of interest included). The Bank shall not be obliged to specify the specific obligations, which formed the unauthorized overdraft.

Х.2. The Bank has the right to collect the unauthorized overdraft from any of the accounts of the Client.
 

XI. CANCELLATION OF THE AGREEMENT

XI.1. Each card shall be valid for two years. If until the first day of the month of the expiry of the validity of the card, the Cardholder or the Client do not notify the Bank that that would like to cancel the agreement, the Bank shall issue a new card with validity of new 2-years period.

The new card could be received after the 20th day of the month of the expiry of the validity of the other card. The PIN shall attach to the new card.

XI.2. Except due to expiry the agreement to issue a banking card could also be cancelled:

1) by the Client or by the Cardholder with 7-days written notice;

2) by the bank with one month notice in case of substantial circumstances ;

3) in the case the current account to which the card relates is closed;

4) from the moment the Bank is notified about the death or the incapacity of the Cardholder or the Client (if individual);

5) in the case the Bank is informed about the commencement of a bankruptcy procedure against the Client.

XI.3. The Bank can cancel the agreement without a notice if the Client and/or the Cardholder are in default for the performance of their basic obligations – such as the Cardholder does not receive his card in 6months after its issuance, does not provide available amounts for the performance of payment operations, does not respect the limits, allows the use of his card and/or PIN by third parties etc.

XI.4. Upon termination of the agreement the cards have to be returned to the Bank.

XI.5. Termination of the agreement does not trigger refund of any fees and commissions already collected/paid by the Client.

XI.6. The Client shall provide funds for the performance of all the operations pending at the time of the termination of the banking card agreement.

XII. CONTEST OF TRANSACTIONS

XII.1. Transactions could be contested not later than 14 days after the Client or the Cardholder was informed about the transaction, but in any case not later than 45 days after the execution of the transaction.

XII.2. The Bank undertakes to support the Client/Cardholder in front of the Mastercard Inc. in the case of contest of transactions. The objections shall be dealt with in accordance with the procedures of Mastercard Inc.
 

XIII. COMPLAINTS, DISPUTE RESOLUTION

XIII.1. In any case of objections or complaints concerning a payment transaction the Bank shall notify the Client/Card Holder about its decisions in 7 days.

XIII.2. Shall the Bank not reply or if the response of the Bank is not satisfactory the Card Holder could refer to the Conciliation Commission of the Commission for the Consumer Protection in accordance with the Law on the Payments, Electronic Payment Instruments and the Payment Systems.

XIV. ANTI-MONEY LAUNDERING AND ANTI-TERRORIST FINANCING

XIV.1. Being subject to the anti-money laundering and anti-terrorist financing rules the Bank shall apply them with regards to the Client/Cardholder.

XIV.2. The Bank shall also have the right to apply to the Client/Card Holder the measures, provided in the internal rules, applicable in Societe Generale group.

XIV.3. The Client/Cardholder is informed and agrees that failure to comply with any of those rules might result among other things in refusal on behalf of the Bank to perform a payment operation.
 

XV. PERSONAL DATA

XV.1. The Client/Card Holder gives their conscent their personal data, provided by the present agreement or in any other occasion to the Bank to be subject to processing on behalf of the Bank within the meaning of §1 point 1 of the Personal Data Protection Law (PDPL) , whereas the Bank shall have the right to process his personal data by itself or through an external company. The Investor was informed within the meaning of art. 19 of the PDPL and agrees with:

1.     the purposes of the collection and processing of his personal data: for identification and personalization, for the performance of legal and regulatory obligations of the Bank under the Law on the Banks, the Law on Public Offering of Securities, the Anti Money Laundering Law and other legislative acts, regulating the relations between the Bank and its customers; for the purposes of all activities related to: establishing relations with clients, offering of banking products, segmentation of the client base; protection of the activity of the Bank against participation in money laundering schemes, establishing of the contact details of the customer, protection and guaranteeing of the receivables of the Bank; for the purposes of the management of the Bank and development of its policy.

2.     The collection and processing can be done either with or without the use of electronic and other automated means.

3.     The personal data of the Client/Card Holder can be disclosed to MasterCard International Inc., BORICA and other card operators to the extent necessary for the performance of the agreement, to third parties, which on the grounds of a contract provide to the Bank IT services or services related to the performance of any financial operation, to which the Investor is a party, to the offering, advertizing, marketing and selling of its products, to the protection of the legal rights of the Bank, to recovery of its receivables, as well as to other institutions of Societe Generale Group for the purposes of analysis and prognoses, for marketing research, for offering and sale of their products, sending of special offers and promotions, as well as whenever it is necessary for the performance of their legal and regulatory obligations, while taking into consideration that providing personal data to these institutions might eventually result in transfer of data to non-EU countries, but only under condition that they offer at least the same level of protection; and also to the persons specified in Chapter VI of the PDPL.

4.     Provision of the personal data is voluntary. Refusal to provide personal data might entail rejection on behalf of the Bank to accept and process the application for the respective financial transaction.

XV.2. The agreement expressed above concerns the personal data of Cardholders the individual Clients (and their attorneys) and in the case of a legal entity the personal data of the individuals managing or representing it.

XV.3. The Client – individual authorizes the Bank to demand and to receive all kind of information related to him processed by various administrative authorities, companies, agencies etc., such as the National Social Insurance Institute, the National Statistical Institute etc.
 

XVI. AMENDMENT OF THE GENERAL TERMS AND CONDITIONS

XVI.1. The Bank could amend the general terms and conditions. Such amendment shall be notified to the Client and the Cardholders in writing or in electronic form at least one month in advance. Upon the expiry of the notice period the amendment becomes effective if the Client/Cardholder did not serve to the Bank a notice for the cancellation of the agreement.

The above specified rule does not apply to changes in the interest rates or tariffs, which become effective from the date, specified in the announcement of the change.