1. Definitions

The Business Terms for Time Deposits generally refer to the definitions contained in Euro Pacific Intl. Bank Inc (“Euro Pacific Bank”) General Business Terms and other product or platform specific conditions. Additionally the following terms shall, unless the context otherwise requires, have the following meanings and may be used in the singular or plural as appropriate:

“Access level’ is the level of access granted by an Account holder to a nominated group user of Telephone Banking or Online Banking, where the group user is allowed to perform the type of transactions nominated for the account(s).

“Account’ means a Time Deposit

“Account holder’ and “you’ is the person(s) in whose name an Account is conducted and who is responsible for all transactions on the Account.

“After Maturity’ means the first Business Day after Maturity.

“Business day’ means any weekday when the Bank is open for business in Puerto Rico. If the Bank is closed then that day will not be a business day. Saturday and Sunday are not classified as business days.

“Group User’ and “User’ means the person(s) authorized by the Account holder to perform the type of transactions permitted by the Account holder.

“Maturity’ means the last day of your Account’s term.

“Person’ includes an individual, company, society, club, association or authority.

“the Bank’, “we’ and “us’ means Euro Pacific Intl. Bank Inc (also “EPB”).

“Terms’ shall mean these Business Terms for Time Deposits.

2. Overview

Euro Pacific Bank Time Deposits are fixed term investments that pay a guaranteed rate of return. Terms and interest periods are fixed and determined on the outset of the account.

All Euro Pacific Bank clients are eligible to open Time Deposit accounts.

The minimum opening balance for a Time Deposit account is $5000.

Funds in the Time Deposit account are not callable. You may not withdraw your funds during a term unless you close your account. You must usually give us 31 days notice to close your account during a term, or make a withdrawal. See clause 4.

3. Interest Rates

3.1 Interest rates that apply to your account

The interest rate applying to your Account is set out in the Confirmation Advice or Renewal Advice we give you after your Account is opened or renewed. The interest rate applying for a term is fixed for that term, subject to fluctuations in the interest rate, as set by the Reserve Bank, Central Bank or Monetary Authority in the underlying currency of the Account.

Deposit interest paid will reflect the number of days in the interest payment period.

3.2 How the interest you earn is calculated and paid

Interest is calculated on the daily closing balance of your account using the following formula:

(Daily closing balance)/365 x (Interest Rate)/100

Interest is calculated daily is paid monthly.

Interest payments are made in the following ways:

• Added to the principal amount (i.e. your current deposit amount) and renewed (this is the default option).
• Deposited in another Euro Pacific Bank account of the same currency (this option must be specified upon account opening)

4. Maturity

4.1  Renewing your Account

When an Account matures, if we have not received any renewal or repayment instructions before Maturity or if you want to vary previously supplied instructions, you have five Business days commencing the day after the Maturity in which to advise us of your instructions or vary previously supplied instructions, and may do so once only during this period of five Business days. If no new or varied instructions are received during the period of five Business days, the Account will be renewed in accordance with instructions advised before Maturity (if any) or (if none) under the same conditions as applied to the previous term (where available), using the standard interest rate applicable After Maturity.

Thirty-one (31) days notice must be given to close the account before Maturity. This is explained in clause 5.1.

EPB offers special interest rates on selected terms. These terms vary from time to time. If you are on a special rate and your Time Deposit rolls over automatically, the Time Deposit may be automatically re-invested at a lower rate than the current interest rate. We encourage you to contact us when your Time Deposit matures to discuss the rates that may be available on the day your Time Deposit matures.

As interest rates change as frequently as daily, all other conditions being equal, it is unlikely the interest rate you receive on your Account will remain constant from one term to the next.

If in the instance some conditions applying to your Account are contrary to the current policies we may be unable to process your instructions. In this circumstance we will endeavour to contact you to discuss your investment needs. In the meantime, the deposit will be held ‘On Demand’ receiving an at call interest rate. Note: Please refer to Section 1 for the definition of “Business day’.

4.2 Adding additional funds to your Account

You can add additional funds to the Account during the 5 business day variation period by transferring funds from an EPB transaction account within the 5 business day variation period.

4.3 Closing your Account

If you choose to close your Account after Maturity or at the end of any notice period, both the principal and interest will be paid directly to another EPB transactional cash account of your choosing. If none is specifically provided EPB will pay the amount into the account, which initially funded the Time Deposit.

4.4 How your closing balance (Termination Value) is calculated if your Account balances are in credit

The net credit balance of your Account is calculated as credit balance plus deposit interest, if any, less any accrued Account fees and government charges applicable up to the closing date.

4.5 How your closing balance (Termination Value) is calculated if there are uncleared funds

We cannot make available any uncleared funds at the time you request that the Accounts are to be closed, until those funds become cleared.

5.  Closing Your Account

5.1 Notice period

You must provide us with at least 31 days’ notice to close your Account prior to Maturity, unless hardship applies as defined by EPB. If you have less than 31 days remaining of your term, the earliest you can access funds is After Maturity, unless hardship applies as defined by EPB.

The 31 day period starts on the day (Puerto Rico time) that you give us notice by making a request at a branch during opening hours. The disbursement will be paid under clause 4.3 on day 32 (or the next Business day after that).

The 31 day notice period applies to all Accounts unless you can show that you need access to the funds earlier due to hardship. If you need earlier access to funds prior to Maturity because of a hardship situation, you will need to provide details to the banking staff who can assess whether your case qualifies for an earlier disbursement under our hardship policy.

5.2 Confirmation of Account closure instructions

When you give notice of your intention to close your Account, you should give the Bank instructions on how the funds should be disbursed. You can complete a notice of withdrawal through your online account. Please contact the Bank if you do not receive the disbursement within 10 days.

Up until 4:00pm (AST – Atlantic Standard Time) on the Business day before the funds will be disbursed, you can cancel or change your instructions by giving us a replacement notice through your online account.

If you cancel your instructions to close the Account your funds will continue in the same Time Deposit until the end of the term without any interest adjustment, unless you make another request to close your accounts on 31 days’ notice.

5.3 Interest adjustment

If you ask the Bank to close your Account before the end of the term, we will not pay interest for current month.

Withdrawal cannot be made until the end of the notice period or the end of the term. The elapsed term is calculated to the day that your funds are actually disbursed, which is usually later than the day you give notice, see clause 5.1.

The Bank reserves the right to vary the above percentages that we will reduce your interest rate by at any time.

If interim interest has been paid, the Bank may need to recover this from the Account if it is repaid before Maturity.

For accounts closed during the 5 Business day variation period after Maturity, interest will not be paid.

5.4 Cleared funds

Funds can only be withdrawn from your Account once they have cleared.

6. When the Bank Can Combine Your Accounts

If you overdraw your account without arrangement or beyond the agreed overdraft limit when formal overdraft arrangements do exist, we may automatically combine your accounts: that is, transfer sufficient money which is kept in any other account with us, held in your name(s), to clear the debt.

We may also transfer money kept in your deposit account(s) to clear debts, which you owe us in other loan or deposit accounts. If we do this, the balance of the Account from which we have transferred the money will reduce by the amount used for this purpose.

You agree that you may not set off any amounts we owe you (for example, credit balances in your other accounts) against amounts you owe us.

If we exercise our right to combine accounts, we will notify you promptly. We need not give any advance notice.

7.  Anti-money Laundering and Counter Terrorism Financing Obligations

Please be advised that in order for us to meet our regulatory and compliance obligations we will be increasing the levels of control and monitoring we perform.

Opening a time deposit account is considered your acceptance, agreement and authorization to Euro Pacific Bank to undertake in the following:

• transactions may be delayed, blocked, frozen or refused where we have reasonable grounds to believe that they breach Puerto Rican law or sanctions (or the law or sanctions of any other country). Where transactions are delayed, blocked, frozen or refused EPB and its correspondents are not liable for any loss you suffer (including consequential loss) howsoever caused in connection with any deposit product;

• we may from time to time require additional information from you to assist us in the above compliance process; and

• where legally obliged to do so, we will disclose the information gathered to regulatory and/or law enforcement agencies, other banks, other members of Euro Pacific Intl. Bank Inc, it’s subsidiaries, service providers or to other third parties.

You provide EPB the following undertakings and indemnify EPB against any potential losses arising from any breach by you of such undertakings:

• you will not initiate, engage in or effect a transaction that may be in breach of Puerto Rican law or sanctions (or the law or sanctions of any other country); and
• the underlying activity for which any deposit product is being provided does not breach any Puerto Rican law or sanctions (or the law or sanctions of any other country).

nor shall any single or partial exercise of any right, power or remedy preclude any other or further exercise of that or any other right, power or remedy.

The rights, powers and remedies provided to us under these Terms are cumulative and are not exclusive of any rights, powers or remedies provided by law.

8. Liability

(i) To the maximum extent permitted by applicable law, the Bank shall not have any liability for any damage, loss, expense or liability of any nature which may be suffered or incurred except to the extent of direct losses or expenses attributable to the Bank’s gross negligence or wilful misconduct. The Bank shall not, in any event, be liable for indirect, special, consequential or punitive loss or damage of any kind (including, but not limited to lost profits), whether or not foreseeable, even if the Bank has been advised of the likelihood of such loss or damage, and regardless of whether the claim for loss or damage is made in negligence, gross negligence, for breach of contract or otherwise; provided, however, that the foregoing shall not apply to the extent such loss or damage is caused by fraud on the part of the Bank.

(ii) The Customer agrees to fully indemnify the Bank and hold the Bank harmless from and against any and all claims, damages, demands, liabilities, losses, costs and expenses which may be incurred or suffered.

9. Expansion of Agreement To Other Jurisdictions

The Customer agrees to apply the terms of this Agreement to additional jurisdiction(s) not covered by this Agreement (at the date an Instruction is sent by the Customer in relation to placing a Time Deposit in such jurisdiction(s)), and the Bank shall provide the applicable jurisdiction specific terms (if any) for such jurisdiction(s) which the Customer will be deemed to have accepted by the issuance of any Instruction with regard to such jurisdiction(s).

10. Use Of Electronic Channel For Giving Instructions And Other Actions

The Bank may, at its discretion, allow the Customer an option to submit certain requests/Instructions through an electronic channel provided by the Bank. Where such electronic channel is used, the Customer agrees that all actions taken and Instructions provided by the Customer shall bind the Customer and, as applicable, be subject to acceptance by the Bank (and the Bank may confirm such acceptance electronically or by other means acceptable to it).

11. Deposit Insurance

You agree and understand that the deposits placed with Euro Pacific Bank are not insured by the Federal Deposit Insurance Corporation (FDIC) nor any other deposit insurance agency.