13 JOINT ACCOUNTS (Applicable to joint accounts in the names of two or more persons)

13.1 The Bank may combine and consolidate the Current Account-i and any other accounts of the account holder maintained with the Bank (‘the Accounts’) and/or set-off and/or transfer any credit balance in the Accounts in or towards the satisfaction of any of the account holder’s liabilities to the Bank, whether such liabilities to the Bank are actual, contingent, primary, collateral, several, joint, or in other currencies (‘the Indebtedness’) by giving the accountholder seven (7) calendar days prior notice. Pending the exercise of the Bank’s rights, the Bank may freeze the monies in the Accounts. Upon the expiry of the notice period, the Bank may set-off the entire credit balance from the Accounts towards settlement of the Indebtedness.

13.2 The Bank’s right to freeze the Accounts and to set-off can be exercised in respect of (a) any joint Current Account-i and/or any other joint accounts of the account holders and utilized to set-off the Indebtedness incurred to the Bank by any one or more of the joint account holders and/or by any one or more of the joint account holders with any other persons; (b) any account holder and/or any one or more of the joint account holders who has committed an act of bankruptcy or who has had a bankruptcy notice and/or petition for bankruptcy or winding up filed against the account holder or any one or more of the joint account holders; (c) any account holder or any one or more of the joint account holders who has been declared bankrupt or wound up; and (d) any account holder who has died or of any one or more of the joint account holders who has died.

13.3 The Bank is irrevocably allowed to debit the Current Account-i by giving seven (7) days prior notice to the account holder for the purpose of making any payment, repayment and/or reimbursement to the Bank and/or CIMB Islamic Bank Berhad and for making payment and/or repayment of the relevant amount to third parties in the following situations:

(i) fees, costs, expenses, charges payable howsoever incurred and/or charged for any other account(s), banking products, services or facilities provided by the Bank and/or CIMB Islamic Bank Berhad to the account holder;

(ii) taxes, stamp duty and any other levies or charges imposed by the government and payable by the account holder for the Current Account-i and/or any other account(s), banking products, services or facilities provided by the Bank and/or CIMB Islamic Bank Berhad to or for the benefit of the account holder;

(iii) loss and/or damage howsoever suffered or incurred by the Bank in carrying out any requests and instructions of the account holder and/or in providing the services in relation to the Current Account-i as provided in these Terms and Conditions;

(iv) amounts owing to the Bank arising from any indemnities and/or guarantees given by the account holder in favour of the Bank for the provision of any services and facilities by the Bank to the account holder pursuant to these Terms and Conditions;

(v) payments made, transferred or credited into the Current Account-i due to the Bank’s error and/or due to any claims by any third parties that the relevant amount had been mistakenly paid by the third party into the Current Account-i and/or due to any

claim by the third party that he or she had been deceived, defrauded or misled into making the payment into the Current Account-i and/or due to any of the Bank’s operational and/or systems errors or malfunction and/or any other causes which are beyond the Bank’s reasonable control;

(vi) proceeds of cheques and/or money instruments which have been credited by the Bank into the Current Account-i earlier if these cheques and/or money instruments are subsequently dishonoured;

(vii) sums credited into the Current Account-i due to suspected tampered instruments / instructions / fraudulent transactions, regardless of whether the account holder is involved;

(viii) payments made from the Current Account-i due to requests from Bank Negara Malaysia and/or the Police and/or any other authorities pursuant to any applicable laws;

(ix) legal fees, disbursements, expenses and costs (on a solicitor and client basis and full indemnity basis) incurred by the Bank due to any:

(a) recovery of indebtedness due under any facilities or financings granted by the Bank to the account holder

(b) garnishee proceedings filed and served on the Bank and where the Bank is named as a garnishee in respect of the Current Account-i and/or any other accounts of the account holder maintained with the Bank

(c) interpleader or any other court proceedings filed by the Bank in respect of the Current Account-i and/or any other accounts of the account holder maintained with the Bank;

(d) injunction or any other court proceedings initiated against the Current Accounti and/or any other accounts of the account holder maintained with the Bank, whether or not the Bank is named as a party; and

(e) legal proceedings filed against the Bank by the account holder or any otherparty involving the Current Account-i and/or any other accounts of the accountholder maintained with the Bank if the Bank is successful in its defense of thesaid legal proceedings; and

(x) advance payments paid to the account holder and/or any third party under any arrangement entered into between the Bank and the account holder and/or under any facility granted by the Bank to the account holder. These Terms and Conditions, where applicable, are subject to Payments Network

Malaysia Sdn. Bhd.'s ("Paynet") guidelines and terms (as may be revised from time to time) ("Paynet's Rules") In respect of any transactions made through channels operated by Paynet including terms involving any allegations, claims or disputes in connection with any erroneous, wrongful, mistaken, fraudulent and/or unauthorised transactions whereupon, the Bank shall have the right to earmark and/or debit the affected account holder's account and make refunds in accordance with Paynet's Rules. The Bank shall not be liable to you for any claim, loss, damages, penalty, charges, cost and expense suffered or incurred by you in relation to the Bank complying with the Paynet Rules.

13.4 In addition to the right to debit under Clause 13.3, in respect of any transactions made through channels operated by Payments Network Malaysia Sdn Bhd (“Paynet”) involving any allegations, claims or disputes in connection with any erroneous, wrongful, mistaken, fraudulent and/or unauthorised transaction, the Bank is authorised to debit the Current Account-i and make refunds in accordance with Paynet's prevailing guidelines and terms(“Paynet Rules”).

13.5 Pending the debit of the Current Account-i pursuant to Clause 13.3 and Clause 13.4, the Bank shall have the right to freeze all monies in the Current Account-i.

13.6 The account holder further agrees that all funds, monies, securities and other whatsoever valuables and properties belonging to the account holder and deposited with the Bank under the Current Account-i and/or any other accounts of the account holder ('the properties') shall automatically become security to the Bank and the Bank shall be entitled to (i) set-off and/or debit any monies forming the properties or proceeds arising from the sale of the propertiesfor the purpose of effecting payment of any liabilities incurred by the account holder to the Bank in these Terms and Conditions (ii) retain or withhold the properties until the account holder's liabilities to the Bank are fully settled.

13 JOINT ACCOUNTS (Applicable to joint accounts in the names of two or more persons)

13.1 The term account holder mentioned in these Terms and Conditions shall mean any one ormore or all of the account holders.

13.2 All agreements, obligations, powers, authorities and liabilities contained in these Terms and Conditions are joint and several. Any notice that is required to be given by the Bank to the account holders is deemed given by notification to any single person named in the joint account.

13.3 The joint account holders shall jointly and severally indemnify and hold the Bank harmless against losses, claims, demands, proceedings, costs, expenses and other liabilities whatsoever and whenever incurred arising from any authorization issued by any of the joint account holders.

13.4 In the event of the death of any of the joint account holders, the Bank may pay the credit balance in the joint account to the survivor(s), subject to receipt of all necessary document required by the Bank and compliance with applicable laws. Any payment made in accordance with this Clause 13.4 shall fully discharge the obligation or liability of the Bank in respect of the credit balance in the joint account.

22 FREEZING OF THE CURRENT ACCOUNT-i

22.1 The Bank is also allowed, without having to give the account holder any prior notice, to refrain from effecting or carrying out any instruction or transaction under the Current Account-i including any of these types of transactions:- (i) encashment of cheques over the counter or the payment of any cheques or any other instruments or payment of any monies under or out of the Current Account-i; and/or (ii) the acceptance of any monies or deposits or cheques or any other instruments for collection and/or for credit into the Current Account-i (“Freezing of the Current Account-i ”) if any of these events happen:-

(a) the Bank is notified that the account holder has committed an act of bankruptcy and/or a bankruptcy notice and/or a petition for winding up and/or a creditor’s petition for bankruptcy, as the case may be, has been filed or presented against the account holder (“the account holder’s insolvency matters”);

(b) the Bank is notified and requested by any authority, including but not limited to Bank Negara Malaysia, the Royal Malaysia Police, the Government of Malaysia or any other statutory or governmental authorities (“the relevant authorities”) to refrain from performing any transaction under the Current Account-i as abovementioned regardless of whether the relevant authorities have the legal or valid authority to so request the Bank (“directives of the relevant authorities”); 

 (c) if the Bank becomes suspicious of any fraudulent activities concerning the Current Account-i, or if any police report is lodged in respect of the Current Account-i, by any person or the Bank or if the Bank and/or the relevant authorities conduct(s) any investigation on any illegal transaction(s) or suspected illegal transaction(s) carried out through the Current Account-i, misuse or suspicion of any misuse of the Current Account-i or any fraudulent transaction(s) in respect of the Current Account-i; or

(d) if the Bank becomes aware of complaints having been made by third parties to the relevant authorities that the Current Account-i has been used for conducting any fraudulent transactions and/or deposits and/or scams and/or soliciting illegal deposits based on its own internal investigation or information made available to it by the relevant authorities. 

22 FREEZING OF THE CURRENT ACCOUNT-i

22.1 The Bank is also allowed, without having to give the account holder any prior notice, to refrainfrom effecting or carrying out any instruction or transaction under the Current Account-iincluding any of these types of transactions:- (i) encashment of cheques over the counter orthe payment of any cheques or any other instruments or payment of any monies under or outof the Current Account-i; and/or (ii) the acceptance of any monies or deposits or cheques orany other instruments for collection and/or for credit into the Current Account-i (“Freezing ofthe Current Account-i ”) if any of these events happen:-

(a) the Bank is notified that the account holder has committed an act of bankruptcy and/ora bankruptcy notice and/or a petition for winding up and/or a creditor’s petition forbankruptcy, as the case may be, has been filed or presented against the account holder(“the account holder’s insolvency matters”);

(b) in relation to the Current Account-i which is maintained by a partnership or a companyor an association or a statutory body or as a joint account, if the Bank receives anyconflicting claims or instructions relating to the mandate of operation of the CurrentAccount-i and/or payment of any cheques or any other instrument or payment of anymonies out of the Current Account-i from any partners or directors or office bearers orexecutive committee members or joint account holder or from any persons alleging tobe partners or directors or office bearers or executive committee members of thepartnership or the company or the association or the statutory body as the case maybe which maintains the Current Account-i (“the account holder’s internal dispute”);

(c) the Bank is notified and requested by any authority, including but not limited to BankNegara Malaysia, the Royal Malaysia Police, the Government of Malaysia or any otherstatutory or governmental authorities (“the relevant authorities”) to refrain fromperforming any transaction under the Current Account-i as abovementionedregardless of whether the relevant authorities have the legal or valid authority to sorequest the Bank (“directives of the relevant authorities”);

(d) if the Bank becomes suspicious of any fraudulent activities concerning the CurrentAccount-i, or if any police report is lodged in respect of the Current Account-i, by anyperson or the Bank or if the Bank and/or the relevant authorities conduct(s) anyinvestigation on any illegal transaction(s) or suspected illegal transaction(s) carried outthrough the Current Account-i, misuse or suspicion of any misuse of the CurrentAccount-i or any fraudulent transaction(s) in respect of the Current Account-i; or

(e) if the Bank becomes aware of complaints having been made by third parties to therelevant authorities that the Current Account-i has been used for conducting anyfraudulent transactions and/or deposits and/or scams and/or soliciting illegal depositsbased on its own internal investigation or information made available to it by therelevant authorities.

22.2 The Freezing of the Current Account-i will be lifted upon the following events:-

(a) In respect of the account holder’s insolvency matters, the Bank is provided with satisfactory evidence that the bankruptcy notice or the petition for winding up or the creditor’s petition for bankruptcy has been validly withdrawn or dismissed or struck out by the court or if the Bank is ordered by the court to lift the Freezing of the Current Account-i;

(b) In respect of the directives of the relevant authorities, the Bank has been informed in writing by the relevant authorities to lift the Freezing of the Current Account-i or if the Bank is ordered by the court to lift the Freezing of the Current Account-i; and

(c) In respect of the investigation by the Bank or the relevant authorities as specified in Clauses 22.1(c) and 22.1(d), the Bank being satisfied that no further investigation is required or the Bank being served with a notification by the relevant authorities that the Current Account-i no longer has any bearing on any ongoing investigations or the investigation has been discontinued. 

22.2 The Freezing of the Current Account-i will be lifted upon the following events:-

(a) In respect of the account holder’s insolvency matters, the Bank is provided with satisfactory evidence that the bankruptcy notice or the petition for winding up or thecreditor’s petition for bankruptcy has been validly withdrawn or dismissed or struckout by the court or if the Bank is ordered by the court to lift the Freezing of the CurrentAccount-i;

(b) In respect of the account holder’s internal dispute, the same has been settled betweenthe joint account holders concerned and a statement in writing to that effect signed byall joint account holders has been served on the Bank requesting for the unconditionallifting of the Freezing of the Current Account-i or if the Bank is ordered by the court tolift the Freezing of the Current Account-i;

(c) In respect of the directives of the relevant authorities, the Bank has been informed inwriting by the relevant authorities to lift the Freezing of the Current Account-i or if theBank is ordered by the court to lift the Freezing of the Current Account-i; and

(d) In respect of the investigation by the Bank or the relevant authorities as specified inClauses 22.1(c) and 22.1(d), the Bank being satisfied that no further investigation isrequired or the Bank being served with a notification by the relevant authorities thatthe Current Account-i no longer has any bearing on any ongoing investigations or theinvestigation has been discontinued.