Common use of Term Deposit Clause in Contracts

Term Deposit. 10.2.1 A term deposit limits the access of the depositor to the funds placed in the deposit account for the period determined by the agreement. The depositor cannot withdraw the amount or add to the initial balance. 10.2.2 The interest rate is accrued on the balance existing in the deposit account. 10.2.3 The interest rate accrued on the term deposit is transferred to the respective account at the beginning of the term, monthly or at the end of the term of the deposit, commensurate with the deposit agreement executed between the depositor and the Bank. 10.2.4 The Bank is authorized not to allow withdrawal of the deposit amount or its part by the depositor prior to expiry of the effective term of the deposit, unless otherwise established by the relevant agreement. 10.2.5 In the event the depositor requests return of the deposit prior to the expiry of the effective term of the deposit and the Bank does not exercise the authority determined in clause 10.2.4., the interest rate shall be accrued on the deposit according to a different (reduced) interest rate determined by the respective agreement. Furthermore, if the depositor has already withdrawn the interest amount, the portion of interest pre-paid from the deposit (the difference between the already received and to be received interest) shall be deducted. 10.2.6 If the agreement is terminated prior to date, under the initiative of the Bank or for the reason of a disagreement with the client with the amendments offered by the Bank consistent with clause 18.3, the interest rate shall be accrued on the term deposit commensurate with the actual number of days of using the term deposit, according to the interest amount established by the Bank for the respective period. 10.2.7 The Bank is entitled to notify the depositor on expiry of the effective term of the deposit via SMS or in another form envisaged by this agreement. The notification shall be sent to the depositor at the mobile telephone number recorded in the application submitted to the Bank at the moment of the client’s opening a deposit. The client is committed to notify the Bank of any change to their number, otherwise the Bank shall bear no responsibility for the consequences.