General customer terms and conditions

Welcome to Norðoya Sparikassi.

These general customer terms and conditions apply to all relations between you and Norðoya Sparikassi, unless other arrangements are clearly agreed upon in a special agreement, e.g. in a deposit agreement, loan agreement (credit agreement), investment agreement or currency exchange agreement.

1. Becoming a customer in Norðoya Sparikassi

In order to you become a customer in Norðoya Sparikassi, you must fill out a form where you state your name, address and social security number (Faroese P-number). You must show your passport, driver’s license, P-number, baptism or name certificate. Are you a sole proprietorship you must also state your Company number (Faroese V-number).

In case of you being a legal entity, i.e. a firm, company, institution, or fund, you must state your entitys name, address, and V-number. You must also provide a copy of the entity’s list of owners, receipt discharge, proxies, rules of the board and the most recent accountancy of the entity. Furthermore, the board, management, and proxies of the legal entity must present their identity information.
Norðoya Sparikassi must also be informed about the full extent of its customer relations with you.

2. Collection and processing of data

Obligation of Confidentiality

 
Employees of Norðoya Sparikassi are bound by an obligation of confidentiality in regards of your affairs. Employees must not without obtaining prior authorization pass on data about you into which they, due to their employment status in Norðoya Sparikassi, have gained insight. These regulations on confidentiality are in accordance with the law on financial activity.

However, employees can pass on data to public authorities when required to do so by law, e.g. provide information to taxation authorities. Only the data required by law will then be passed on.

Passing on data

In order of enabling Norðoya Sparikassi to uphold its agreements with you, e.g. transferring an amount to another account, those of your personal details which are necessary for identifying you and carrying out the agreement will be passed on to a third party.

Data can and will be passed on to public authorities when Norðoya Sparikassi is required to do so by law, e.g. to pass on necessary information to tax authorities.

Regular data about your customer relations, e.g. name, address and social security number (Faroese P-number), may be passed on in order to carry out administrative tasks, for instance to perform a credit evaluation and other customer administration in accordance with the Financial Business Act.

Insight in the processing of personal data
You have the right to be informed about which data about you Norðoya Sparikassi is handling and processing. If you would like a written response of this, Norðoya Sparikassi may impose a fee.

Incorrect data about you
If it comes to the attention of Norðoya Sparikassi that any information in the data regarding you is incorrect or misleading, the information will be corrected as soon as possible.

Objection to marketing
You can always instruct Norðoya Sparikassi that you do not wish to receive marketing campaign material from Norðoya Sparikassi.

Complaints about data processing
If you are dissatisfied with the way in which Norðoya Sparikassi is processing your personal data etc., you can file a complaint to:

Norðoya Sparikassi,
Ósávegur 1,
Postsmoga 149,
FO‐700 Klaksvík.
E-mail: dpo@ns.fo

or The Faroese Data Protection Agency:

Dátueftirlitið,
Sigmundargøta 13,
Postboks 300,
FO‐110 Tórshavn.

3. Interests

Interest terms and conditions
You will receive and/or pay interest on your deposits, loans and credits. This implies that Norðoya Sparikassi can impose a negative interest on the deposits in your accounts. Interests imposed on individual deposit and loan accounts vary, unless other specific arrangements have been agreed upon. Variable interests mean that Norðoya Sparikassi can adjust the interest rate at any given time. The interest rate depends upon which type of account you have and the interest rate for the entire account can be determined by the account balance on it.

You can read more information about the interest rates for various types of deposits and loans on the website www.ns.fo or by contacting an employee of Norðoya Sparikassi.

Adjustment of interest rates
Norðoya Sparikassi may adjust variable interest rates without notice if the change is beneficial to you.

Norðoya Sparikassi may lower the variable interest rates on deposits and raise the variable interest rates on loans without prior notification if domestic or foreign changes in monetary or credit policy are of significance to Norðoya Sparikassi; if the standard interest rates are affected, e.g. if the National Bank of Denmark adjusts its interest rates; or other changes happen in standard interest rates, e.g. on the money market or the stock market, that are of significance to Norðoya Sparikassi, or if changes in taxation or fees are of significance to Norðoya Sparikassi.

Norðoya Sparikassi can lower the variable interest rates on deposits and raise the variable interest rates on loans with one month’s notice for private customers and 14 days notice for business customers, if market circumstances cause a change in one or several types of accounts; the circumstances on which the fixation of your financial affairs were originally based, change; or Norðoya Sparikassi changes its standard interest and price fixing due to commercial causes, without these being related to the course of the standard interest rates. Commercial causes might include e.g. gaining a more profitable use f the bank’s resources or capacities, or to increase the earnings of Norðoya Sparikassi.

When variable interest rates are altered, you will be informed of this on Norðoya Sparikassis website, www.ns.fo, by letter, and/or by announcement in the Faroese media.

4. Calculation of interest, interest date and addition

Norðoya Sparikassi performs a daily calculation of interest for each of your accounts by using this formula:

Balance × nominal interest rate / actual number of days in that year

Each month will be calculated from the actual number of days in it.

When settling the daily balance, Norðoya Sparikassi will base its calculations on the interest date for the account activity.

The interest date is the date of a deposit, withdrawal or other account activity that affects the calculation of interest for an account.

As a general rule, these regulations apply:

Saturdays, Sundays and bank/church holidays, Flag Day (April 25th), St. Olaf’s Eve (July 28th), St. Olaf’s Day (July 29th), Christmas Eve and New Year’s Eve are not considered workdays in Norðoya Sparikassi.

• When you make a deposit in cash or by card into an account in Norðoya Sparikassi, the interest date is the workday after the deposit is made.
• When you withdraw cash from your account from the cashier in Norðoya Sparikassi, the interest date is the date of withdrawal.
• When you withdraw cash using card from one of Norðoya Sparikassi’s ATMs, the interest date is the date on which you withdraw the money.
• When you use your card on electronic systems in shops, the interest date is the date on which the card has been used for the transaction.
• When you transfer amounts between your own accounts in Norðoya Sparikassi, the interest date for both accounts is the date of the transaction.
• When you receive a salary, public grant, or similar income, the interest date is the first workday after the deposit.
• When you receive other transfers from an account in a Faroese bank or savings bank, the interest date is the first workday following the receipt of the transfer.
  
  

Addition of interest
The interest of deposit accounts is due quarterly. However, exceptions may occur in which interests are due semi-annually or annually. Interest additions are calculated by adding up the daily amounts of interest and transferring the total amount to your account. The interest date is the first workday after the addition of interest.

Addition of interest is made by adding the daily interest calculations together and either credit or debit your account with that amount. Addition of interest is divided into interest on an account basis and interest on a customer basis.

Interest on an account basis: All accounts have an interest on account basis. The interest will be added to the account in question. The first workday after the addition of interest is the interest date.

Interest on a customer basis: For most types of deposits the interest is assigned on a customer basis. This means that the calculation of interest takes into account the total sum of deposits on the customer’s accounts and adds the amount to one particular deposit account which has been appointed as an interest account. The calculation is carried out on basis of the total deposits, regardless of the interest being negative or positive.

The interest on loans is usually due either quarterly or semi-annually. The due date of interest is specified on the loan agreement.

Addition of interest on loans is made by adding the daily interest calculations together and debit your account by that amount. The date of addition of interest (interest due date) is the interest date.

The due date of interest is shown on your bank statement.

Norðoya Sparikassi may decide that interests lower than a certain amount will not the debited from your account.

When the account is settled, interest will be added according to the settlement.

5. Fees

Norðoya Sparikassi may charge you a fee for services provided for you. Norðoya Sparikassi may also charge you with a fee for answering questions from the public authorities.

The fees will be charged either as a fixed payment for service, as a percentage, or at an hourly rate, depending on the extent of the service. These methods of calculation may be combined.

Standard fees are displayed on a price list on Norðoya Sparikassi’s website, www.ns.fo. Other fees can be disclosed upon request.

Alteration of fees

 Norðoya Sparikassi may at any time and without prior notification lower fee prices.

Continuous fees that are part of current contract affairs may be raised with one month’s notice, if

• the circumstances that constituted the basis of your service fee conditions are changed, or
• Norðoya Sparikassi due to commercial reasons changes the standard payment structure and pricing. Commercial causes might include e.g. gaining a more profitable use of the bank’s resources or capacities, or to increase the earnings of Norðoya Sparikassi, or
•  market-related circumstances imply changes on one or more account types

In current contract affairs, Norðoya Sparikassi may for commercial reasons charge fees for services which Norðoya Sparikassi has not previously charged for. New fees may be charged with 1 months notice.

Norðoya Sparikassi may at any given time and without prior notice charge and raise fees for individual services.

When service fees are altered, changes will be announced on Norðoya Sparikassi’s website, www.ns.fo, and you may be notified by letter or by an announcement in Faroese media.

6. Penalty interest, dunning charges etc.

If your account is overdrafted or in arrears, or if the account is not being used in accordance to the agreement, Norðoya Sparikassi may impose penalty interests, provisions, or arrears as well as charge a fee for sending out reminder(s). Norðoya Sparikassi may also request that you pay its expenditures from seeking legal aid for debt collection.

The amount of the dunning charge is specified on the reminder from Norðoya Sparikassi. The penalty interest etc. is listed on the interest overview and will be disclosed at your request.

Overdraft provisions are based on Norðoya Sparikassi’s estimation of the risk of failure to fulfil the obligations in accordance to the terms and conditions as a whole as well as on the particular customer’s previous failures to fulfil his or her obligations.

Norðoya Sparikassi may at any time pertaining to accountancy decide to seize the addition of interest. When the addition of interests cessates in this manner, without being agreed upon by you, this should not be perceived as Norðoya Sparikassi renouncing its right to receive interests from the claim and/or for having payed expenses that have been added at a later date. This applies whether or not you have been informed of the bookkeeping methods used in a bank statement or similar communiqué.

7. Deposits and withdrawals

Reservations regarding deposits
All deposits into your account that are not in cash, are subject to reservations insofar as they are contingent upon Norðoya Sparikassi receiving the amount of money. These reservations apply even if they are not mentioned on a receipt or in other information regarding your deposit.
Norðoya Sparikassi may withdraw an amount which has been deposited to your account through a clear mistake on Norðoya Sparikassi’s behalf, e.g. if the same amount is deposited twice.

Use of deposits
Any deposit for a loan or credit first goes to pay for interests and provision charges. This applies whether you pay in person or if the deposits arrive through a guarantor or pledger. Consequent deposits are then used for repayments.

Alteration of loan payments
Norðoya Sparikassi reserves the right to, but is not obligated to, raise the loan payment in accordance to rising interest rates, provision charges or the like.
Statements

When you receive a paper or electronic bank statement, you should immediately check to see whether there has been any activity on the account that you do not recognise. If there has, you should notify Norðoya Sparikassi immediately.

A statement from Norðoya Sparikassi should at any time be considered a valid proof of the amount owed.

8. Termination, offsetting, and altered conditions

Alteration of terms and conditions
If special conditions have been agreed upon with you, these can be found in the section labelled “special conditions” in this document.

When the terms and conditions of your agreement become effective, Norðoya Sparikassi emphasises the full customer scope between Norðoya Sparikassi and yourself.

If alterations are made to the customer scope, which have not been agreed upon with Norðoya Sparikassi, Norðoya Sparikassi reserves the rights to change the terms of agreement.

Termination
Both Norðoya Sparikassi and you may at any time terminate the customer relation without prior notice.

When the customer relation ends, Norðoya Sparikassi may terminate its liability insurance and bail-in liability, e.g. depts in foreign currencies, and free itself from other duties, which may have been done on your behalf. You are obligated to free Norðoya Sparikassi from all obligations made on your behalf and if necessary provide a collateral for this.

Offsetting

Norðoya Sparikassi may without prior notification offset any outstanding debt that should have been paid in any outstanding debt that you hold in Norðoya Sparikassi, if no other agreement has been made.

Norðoya Sparikassi will however not offset the part of your salary, public grants etc. that is necessary to ensure your standard cost of living. Neither will the bank offset your credit balance when it is legally and/or by arrangement protected against creditors.

9. Various stipulations

Procuration
You may give others the power of attorney to manage your affairs with Norðoya Sparikassi. Such power of attorney should be written and should usually be made out on Norðoya Sparikassi’s procuration application form. The power of attorney is valid until Norðoya Sparikassi has received a written notification from you stating that it is rescinded or altered.

If the person who has authorized the procuration dies, the power of attorney becomes void when Norðoya Sparikassi receives the notification of death. This means that accounts and other affairs of the person who has authorized the power of attorney will be closed until the probate court has decided upon how the estate should be administered.

If multiple customers agree on a joint account, any of the account holders may handle the account on their own, unless other agreement has been made. If one of the account holders dies, Norðoya Sparikassi reserves the right to close the account in order to secure the estate of the deceased.

Electronic communication

Norðoya Sparikassi may send you all notifications by means of electronic communication, e.g. contracts, terms and conditions, documents etc. and inform you of changes in said materials by means of electronic communication as well. This applies in spite of the fact that some contracts, terms etc. mention the words “written”, “letter”, “statement” etc.

You will receive all notifications, account statements, annual statements, possible reminders and other communiqués electronically, i.e. as electronic mail in your internet bank or electronical box.

Norðoya Sparikassi may however use the regular postal service if the circumstances necessitate this. For instance, if you do not have an internet bank facility, aforementioned messages will be dispatched as regular mail.

Recording of telephone calls
In order to record and document the contents of your services and counsel, Norðoya Sparikassi may record telephone calls. This is usually only done in connection with trade of bonds or currencies.

Foreign trade

If Norðoya Sparikassi is to trade internationally on your behalf, Norðoya Sparikassi will choose a trade link if no other agreement has been made. Norðoya Sparikassi can not be held accountable for any errors made by the foreign bank used, nor for its credit rating.

If you hold a foreign bonds portfolio through Norðoya Sparikassi, Norðoya Sparikassi is held accountable for possible errors and the credit rating of the international trade link. This does not apply if you have chosen the trade link yourself.

Judicial precepts, practices, and trade conditions in foreign countries can differ considerably from equivalent rules valid in the Faroe Islands. If Norðoya Sparikassi by law is held to these foreign judicial precepts, customs, and trade conditions, these apply to you as well.

Complaints

If you want to make a complaint to about Norðoya Sparikassi, you should first of all address it to your department of the bank.
If you still disagree with Norðoya Sparikassi’s treatment of your complaint, or with its conclusion, you can address the person who is responsible for complaints in Norðoya Sparikassi. The address is:

Norðoya Sparikassi,
Att.: Complaint department,
Ósávegur 1,
Postboks 149,
FO‐710 Klaksvík.
E-mail: klagur@ns.fo.

If you are not satisfied with the solution to the problem you have complained about, you can issue a complaint to the Secreteriat of the Financial Appeal Board. The address is:

Sekretariatet for Det finansielle Ankenævn
St. Kongensgade 62, 2. sal
DK‐1264 København K
Tlf. +45 3543 6333
Website: www.fanke.dk

Liability

Norðoya Sparikassi is obliged to pay for the damages if, by mistake or neglect, Norðoya Sparikassi is delayed in or has failed to fulfil a duty to which Norðoya Sparikassi has agreed upon.

Even in areas in which more strict liabilities apply, Norðoya Sparikassi is not responsible for losses that are consequences of:

• failure or lack of access to IT-systems or data damage in these systems, which can lead to the occurrences listed below, regardless of whether or not the bank itself or an external supplier is responsible of the daily operations and maintenance of said systems,
• faulty power supply or telecommunications at Norðoya Sparikassi, violation of rights or administrative actions, and cases of force majeure, e.g. natural disasters, war, riots, civil war, sabotage, terrorism, or vandalism, for instance computer worms or hacking,
• strikes, lockouts, preclusion or hindrance, whether the discord is aimed at or is instigated by the bank itself or by its organisation, regardless of what the cause of the discord may be. This applies even if the discord only affects parts of Norðoya Sparikassi,
• other circumstances over which Norðoya Sparikassi has no control.
  
  

Norðoya Sparikassi is not exempt from liability, if:

• Norðoya Sparikassi beforehand should have noticed the conditions that caused the loss when the agreement was made, or in due time ought to have averted or overcome the cause of the loss,
• Norðoya Sparikassi according to the law is responsible for the circumstances resulting in the loss.

Decree on good practice for financial companies

The legislative decree on good practice for financial companies (Danish: “Bekendtgørelse for Færøerne om god skik for finansielle virksomheder”) applies to Norðoya Sparikassi.

Norðoya Sparikassi wishes to draw attention to the fact that Norðoya Sparikassi in some cases receives a provision or other fee, when services of Norðoya Sparikassi’s cooperative partners are sold or cited, e.g. in connection to mortgage loans, investment certificates, or insurances. You can read the legislative decree on good practice for financial companies in its full extent on the website of the Danish Financial Supervisory Authority, www.finanstilsynet.dk.

Garantiformuen – Depositor and investor guarantee scheme
As a customer of Norðoya Sparikassi you are, to a certain extent, secured against financial losses through the Garantiformuen scheme, should Norðoya Sparikassi file for bankruptcy or suspension of payments. Amongst other things, Garantiformuen vouches for named deposits in banks with an value of up to the equivalent of 100,000 euros per depositor. There are no limitations for amounts in pension accounts.

Garantiformuen also assumes responsibility in cases where you as an investor suffer a loss due to Norðoya Sparikassi not being able to hand back securities which it safeguards, is responsible for, or administrates. Each investor will be repayed up to the equivalent of 20,000 euros. For more information on Garantiformuen, please visit www.fs.dk.

Supervision

Norðoya Sparikassi is supervised by:

Finanstilsynet
Århusgade 110
2100 København Ø
Tel. +45 33 55 82 82
www.finanstilsynet.dk

Alteration of general customer terms and conditions
The general terms and conditions and possible special conditions may be altered without notice if these changes are favorable to you. If said alterations are not adventageous to you, the general customer terms and conditions and possible special conditions may be altered, as well as new ones may be added, with 1 month’s notice.

You will be notified of changes by letter, electronically or as an announcement in the Faroese media. This notification clearly states where on Norðoya Sparikassi’s website, www.ns.fo, you can read about these new terms and conditions.