Careful reading of the contract with the bank for cash and settlement services is important, because it allows you to understand all the conditions and rules that will regulate your interaction with the bank. Misunderstanding or ignoring these conditions can cause problems and troubles in the future.
The contract with the bank for settlement and cash services may specify such important points as the amount of commissions and interest for transactions, payment rules, account maintenance procedures, account closure conditions and much more. The contract may also specify the rights and obligations of both parties, which avoids misunderstandings and conflicts in the future.
If you carefully read the agreement, you will be able to pay attention to some nuances that may be unprofitable for you, and try to negotiate with the bank to change them or consider choosing another bank with more favorable terms. To do this, we recommend using the services of an experienced lawyer.
Thus, a careful reading of the contract for cash and settlement services will help protect your interests and avoid unpleasant situations in the future.
Conclusion of an agreement with the bank
A company that has chosen a bank to open a bank account and wants to become a customer of the bank enters into a contract with it for settlement and cash services. Each bank develops such an agreement itself.
The subject of the agreement will be the opening and maintenance of a bank account, the obligation of the bank to open a current (settlement) bank account to the account holder for storing funds and (or) crediting funds to this account in favor of the account holder.
Usually, the contract of the current (settlement) bank account includes conditions for settlement and cash services.
Usually, the bank includes settlement and cash services:
- A number of transactions on the current account;
- Salary project;
- Cash transactions;
- Electronic transfers;
- Servicing of bank payment cards;
- Currency exchange operations, etc.
The Bank can set a maximum amount for each client:
- One payment order.
- The money that the client transfers over a certain period.
It is important that you read the contract carefully to ensure that there are no future issues with payment.
What terms of the settlement and cash services agreement should the head of the company pay attention to
Usually, the contract with the bank is signed by the head of the company. We recommend discussing the contract with an experienced lawyer before signing it in order to get an idea of the timing of the bank’s services and the cost of such services. The manager and the lawyer need to pay attention to the following terms of the agreement with the bank:
1. Usually, the bank prescribes in the contract the conditions that the client, the owner of the bank account, grants the bank the right to use temporarily free money that is in the account. For such use, the bank charges interest in favor of the client. The amount and frequency of crediting such interest to the settlement account are determined in the contract. The bank may unilaterally change the amount of interest after notifying the client about it. In this case, the amount of interest and the frequency of their crediting by the bank to the client’s account are of interest.
2. Remuneration to the bank for services rendered by the bank to the account holder. Conditions and frequency of payment of such remuneration.
By default, the bank withholds remuneration every month, but a different procedure may be prescribed in the contract. The bank may itself withhold remuneration under the agreement or provide that the remuneration is paid by the client in a separate payment.
The Bank does not charge remuneration for the payment of taxes and fees from the bank account. In this case, the amount of remuneration or the procedure for determining and paying it is of interest.
3. The procedure for exchanging documents with the bank. Especially about how the bank informs the customer about the execution of payment instructions. In this case, the client receives clarity regarding the execution of payments.
4. It is necessary to pay attention to the procedure prescribed in the contract for informing the client about sending a payment request to AIS IDO.
AIS IDO is an automatic information system for fulfilling obligations. The payment claims of the claimants fall into this system, which undoubtedly writes off the debts of bank customers according to executive documents and payment requirements. The system actively monitors information about money balances on all payers’ accounts in all banks. Also, it collects debts on obligations from all debtors’ accounts that have money. It is important for the bank’s clients to understand how soon they will receive information that monetary claims have been made to their bank account through AIS FMO. It is also important to know the procedure for sending payment claims to AIS FMO in case of debt collection.
Payments to the budget are paid through AIS FMO.
Understanding how to interact with AIS IDO will help you fulfill mandatory payments on time and collect money debts.
5. At what time the agreement is terminated at the request of the account holder and in what order, in this case, the remaining funds are issued to the client.
6. The procedure for transferring money to the client when transferring it to another bank.
Issues related to the termination of service at a particular bank are often overlooked when concluding a banking service agreement. Such inattention can lead to a situation where a bank customer cannot use their money for some time due to switching to another bank for servicing. Therefore, we recommend that you transfer the contract provided by the bank to experienced lawyers to study all possible nuances.
It will be useful for the company’s accountant to study the following terms of the contract:
- The section of the agreement on the procedure for transferring and revoking payment documents.
- About receiving information from the bank about the refusal and changes in the payment.
- About the bank’s return of the documents attached to the payment requirements.
- About the period during which the bank executes the client’s orders, including those accepted after the end of the banking day.
Conditions related to remote banking services
As a rule, banks provide services to customers remotely — through remote banking systems. Therefore, the contract prescribes:
- Type of remote banking service system.
- How the client should be identified in this system.
- Cases and procedure for suspension and termination of customer service by the bank, when required by the legislation on the prevention of money laundering, as well as the procedure for informing customers about this, the procedure for resuming customer service.
- A list of information that the client can transmit and receive from the bank remotely.
When interacting with the bank, the client needs to be protected from surprises as much as possible. Studying the terms of the contract is an important step in this direction. The terms of the contract can usually be adjusted, especially before the contract is signed. Our experienced lawyers and accountants will analyze the contract that the bank has provided to you, identify possible risks, make an opinion on the timing of banking transactions and fully accompany the conclusion of an agreement with the bank.
Contact us
If you have any questions related to the conclusion of a settlement and cash service agreement with the bank, we will be happy to help you! Our long-term experience in the field of interaction with banks will help you make the right decisions and resolve any situations.
Phone and e-mail communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
