Terms & Conditions of Savings/Transaction Accounts

Following are the Terms and Conditions of the Savings/Transaction Accounts.

Introduction

You should carefully read these Terms and Conditions for your:

* S2 Savings Investment Account	* S6 Christmas Club
* S3 Pennywise Account	* S8 Business Cheque Account
* S4 Personal Cheque Account	* S21 Access Plus Account
* S5 Pensioner Account

In this document 'we', 'us', or 'our(s)' refers to Cairns Penny Savings & Loans Limited and 'you' or 'your(s)' refers to you the Member(s) or Account Holder(s).

Additional information and terms and conditions on all accounts, additional services and account operation are available on request from our Branch or by calling direct on (07) 40314460.

Account Opening

You must complete an application form and account operation instructions to establish a savings account.

An account will be opened in the same name as that of the Membership application form.

When you open an account, although not a requirement, you may decide to quote your Tax File Number (TFN) to avoid having withholding tax taken out of your interest payments.

The following persons can operate a Pensioner Account(s):

* Recipients of Age and Disability Pensions; or
* Self-funded retirees over 55 years of age.

Proof of the above criteria will need to be sighted when opening a Pensioner Account.

Cairns Penny Savings & Loans Discretion

We may refuse to accept any application to open a savings/transaction account and may set maximum and minimum amounts for Savings/Transaction Account deposits and terms.

Additional Information Available

General descriptive information on the operation of your account(s) is available on request. Information on current interest rates and fees and charges is available on request from us, and also available in our Fees and Charges and Interest Rate brochures.

Account Statements

Account statements are sent bi-annually at the end of June and December. If you have an S4 or S8 cheque facility statements are sent monthly. Duplicate statements can be requested at any time, however a fee may apply.

You agree to notify us without delay of any change of address or any errors or unauthorised transactions on your statement.

If you are a joint Account Holder of the same savings account, we will only send one statement of account to that address.

These account statements shall provide confirmation of the transactions that have occurred on your account. We encourage you to maintain accurate knowledge of your account balance by reference to your passbook, or your statement.

Minimum Deposits and Balances

Apart from the $1 membership, there is no minimum deposit required to open an S2 Savings Investment Account, S3 Pennywise Account, S5 Pensioner Account, S6 Christmas Club Account(s), or S21 Access Plus Account, without cheque access.

A minimum deposit of $500 is required to open a S8 Business Cheque Account or S21 Access Plus Account with cheque access.

Cheques deposited to your account(s) will be credited conditionally. Amounts credited will be debited back to your Account if the cheque is not met. Credits may not be available until we have been advised that the cheque has been cleared.

All cheques for deposit can only be accepted if in the name of the Account Holder, unless endorsement by payee to the Account Holder is evident on the reverse side of the cheque and we are satisfied with the evidence of the identity of the endorser.

A cheque will not be accepted if it is 'stale,' that is when the date of the cheque is more than 15 months past.

If a cheque deposited to your account is dishonoured, any interest accrued on the deposit from the day the cheque was credited to your account will be reversed by us. We may also impose a dishonour fee by debiting your account.

Account Withdrawal and Access Limits

Withdrawals are available at call on your S2 Savings Investment Account, S3 Pennywise Account, S4 Personal Cheque Account, S5 Pensioner Account(s) and S21 Access Plus Account.

S6 Christmas Club Account: Withdrawals are normally not permitted during the year. Funds are available to be withdrawn from 1st November until 31st December each year.

You may withdraw up to a maximum of $1,500 cash per day at the Cairns Penny Savings & Loans Branch. Cash withdrawals require written authorisation from the Account Holder. If you require a larger amount you must give 24 hours advance notice (verbal or written) to the Branch.

We reserve the right to limit cash withdrawals to amounts deemed reasonable by Cairns Penny Savings & Loans. In some cases we may choose to provide a counter cheque for amounts above $1,500.

Written authorisation is required from the Member for a third party to conduct a cash/cheque withdrawal at the Cairns Penny Savings & Loans Branch, and identification will be required from the third party.

Interest Calculation/Payment Method

S2 Savings Investment Account and S5 Pensioner Account:
We will calculate the interest on the daily balance of your account and pay it to your Account annually at the end of June.

S3 Pennywise Account:
Interest is offset to the nominated loan account monthly.

S6 Christmas Club Account:
We will calculate interest on the daily balance of your account and pay it to your account annually at the end of October.

S4 Personal Cheque Account:
We will calculate interest on the daily balance of your account and pay it to your account quarterly at the end of March, June, September and December.

S8 Business Cheque Account:
We will calculate interest on the daily credit balance of your account and pay it to your account monthly at the end of each month.

S21 Access Plus Account
We will calculate interest on the daily balance of your account and pay it to your account quarterly at the end of March, June, September and December.

The daily interest rate is the relevant annual rate divided by the number of whole days in the year.

Variations

We may change the interest rate, method of interest calculation, the frequency of interest payment, fees and charges applicable to the product or service, and other terms and conditions which apply to your savings accounts. If we do so, we will notify you:

(a) At least 30 days before we introduce new fees and charges, or change the method of interest calculation or frequency of interest payment
(b) No later than the day we change other terms and conditions which increase your obligations or reduce rates
(c) In our next contact with you after increasing interest rates, or otherwise reducing your obligations.

We may notify you by personal letter or email, newspaper advertisement, newsletter or account statement. You will be deemed to have received notice on the day on which the newspaper advertisement is published, or on the second day after the mailing of the letter, email, newsletter or account statement.

Tiered Interest Rates

On S2 Savings Investment Account, S4 Personal Cheque account, S5 Pensioner Account, S6 Christmas Club Account, S8 Business Cheque Account(s) and S21 Access Plus Account interest rates are tiered to pay higher interest rates on larger balances. Once a balance exceeds the lower tier, interest is paid on the whole balance at the higher rate.

On every S5 Pensioner Account, interest rates are tiered at the levels set by the Federal Government for deeming rates.

On every S3 Pennywise Account, the interest is offset on the nominated loan by the loan annual percentage rate less 2.00%pa.

Details are available in our Interest Rates brochure.

Fees and Charges

No account keeping fees ordinarily apply to your savings account.

Transaction fees apply to S21 Access Plus Accounts, S8 Business Cheque Accounts opened since 19 March 2007 and Internet and Cheque enables S3 Pennywise Accounts.

Please see our Fees and Charges brochure for details. Our Fees and Charges will change from time to time. A current Fees and Charges Brochure will be available from our branch and website. We will comply with relevant financial services laws and provide you with notice of a change.

Government Charges

We will debit your account for Government charges we incur. We will notify you of the introduction or variation of a Government charge payable directly or indirectly by you, in writing, unless it is publicised by a Government agency or representative body.

Tax Implications

Interest earned on your savings accounts must be declared for income tax purposes.

If you do not provide us with your tax file number, we may be obliged to deduct tax from your interest earned at the highest personal income tax rate.

Overdrawn Accounts

We do not agree to provide any credit in relation to your account. You agree not to overdraw your savings account unless you have an Overdraft facility. You may apply for an Overdraft facility which will be subject to the Terms and Conditions of an Overdraft credit contract.

Account Combination

We may appropriate the credit balance and/or shares held against any of your savings accounts towards repayment of a debt that you might owe us on a savings account. We will notify you promptly after doing so.

Account Closure

If and when you wish to close your account/s with us your membership shares (10 @ 10cents - $1) will be repurchased and the amount of $1. will be refunded to you.

Direct Credit Reversal

We may reverse a direct credit to any of your savings accounts that we have received on your behalf if we, for any reason whatsoever, do not receive value for the direct credit.

Joint Accounts Operation

Credit Balance Entitlement

The credit balance of a joint account is held jointly by all Account Holders. Each Account Holder has the right to all of the balance(s), jointly, with the other Account Holders.

Survivorship

If a joint Account Holder dies, the remaining Account Holder holds the credit balance and if more than one, those remaining Account Holders hold the credit balance jointly.

Authority/Disputes

A joint Account Holder may only make a withdrawal on the terms of any authority to operate on the account. If there is any dispute notified to us between joint Account Holders, we may decide to only permit operation on the account when all parties have signed the necessary authority.

Joint and Several Liability

Each joint Account Holder is liable for the whole of any debit balance on an account. We can sue all or any Account Holder(s) for an amount owing on the account.

Cheque Payees

We may accept a cheque into a joint account which is payable to any one or more of the joint Account Holders.

Authority To Operate

You may nominate a person to operate on your account by completing an "Authority to Operate" form, available at our Branch.

Authority

By signing and completing an Authority to Operate you instruct us to allow a person to be authorised to operate on your account and to conduct any transactions on the Account, including:
(a) Cancelling cheques;
(b) Making withdrawals;
(c) Authorising periodical payments and direct debits;
(d) Using electronic and other access to your account; and
(e) Closing the account.

Method

The Authority to Operate will state the method of operation for the account. This may be:
(a) Any Account Holder or signatory to sign (ie operate); or
(b) Another method which you specify and which is acceptable to us.

Duration

An Authority to Operate will remain in force until we receive written notice of cancellation or written notice of the death of the person granting the authority and that written notice has been processed by us. Notice of cancellation must be signed by all surviving Account Holders. We may require a new Authority to Operate before we allow further operation on the account.

Disputes

If there is a dispute notified to us about an Authority to Operate, or the owner or owners of an account, we may refuse to allow operation on the account until all parties concerned have signed the necessary authority.

Identity

We will not allow a person to operate an account until his or her identity has been verified in accordance with procedures prescribed by the Financial Transaction Reports Act and any other identification procedures we require.

Liability

We are not liable for any loss or damage caused to you by persons authorised to operate on your Account, except where it arises from fraudulent conduct by our agent or employee or if we are liable under statute.

We are not liable for any loss or damage caused by any delay in processing a cancellation of any Authority to Operate.

Payment Services

A Direct Debit or Periodical Payment service may be established on your S2 Savings Investment Account, S3 Pennywise Account, S4 Personal Cheque Account, S5 Pensioner Account, S8 Business Cheque Account and S21 Access Plus Account(s). A Direct Debit transaction is a transfer of funds from your Account to an account with another financial institution, when you have authorised it to debit your Account. A Periodical Payment is a transfer of funds at your request from your Account to a specified account on a certain date on a regular basis.

Payment Order

If you request more than one Periodical Payment or Direct Debit, we will determine the order in which they are paid.

Overdrawn Accounts

If the amount of the Direct Debit or Periodical Payment exceeds the Available Balance on your Account, we may refuse to pay the Direct Debit or Periodical Payment. In such an event, we will advise you in writing, by ordinary prepaid post as soon as practicable, but will incur no liability for failure to do so. We may impose a fee for such dishonours. Refer to Fees and Charges Brochure. The Available Balance includes any funds lodged in a Cairns Penny Savings & Loans account and unused overdraft. The Available Balance does not include deposits received but uncleared in accordance with the policy of the Cairns Penny Savings & Loans, nor does it include interest accrued but not credited or deposits in transit.

Stop Payments

To stop or alter a Direct Debit or Periodical Payment, you must provide written instructions to us setting out full details of the Direct Debit or Periodical Payments at least three (3) business days before the next payment is to be made. You must also instruct any Direct Debit Supplier to stop the Direct Debit without delay.

Fees and Charges

We may charge you a fee for Periodical Payments or Direct Debits including dishonour fees. We may also debit your account for any fees or charges passed on to us by another financial institution. Refer to our Fees and Charges Brochure for current details.

Direct Debits

To establish a Direct Debit, you must complete an authorisation form and send it to the Direct Debit supplier to establish the Direct Debit service. We will not be aware of the Direct Debit until such time as it is presented by the Direct Debit supplier. We will continue to act on the Direct Debit authority until you inform us of its termination, the balance does not permit us to continue to make payments or your closure of the account. We refer to our brochure: Standard Non-Cash Payment Products.

Periodical Payments Conditions

To establish a Periodical Payment service, you must complete a Periodical Payment Authority form. We do not have to advise you if a periodical payment is not made. When we make a periodical payment we are not acting as your agent or the agent of the payee. If a periodical payment is for a loan with us and there are not sufficient funds to make the payment, we may at any time debit your account from which the payment is made for any amount you owe us. If a periodic payment cannot be processed on the due date due to a lack of funds we will attempt to make the payment on the following 4 business days. If the payment cannot be processed due to insufficient cleared funds after 5 successive business days the payment will be rejected until the next scheduled payment date. If the payment is rejected for 2 consecutive periods the periodic payment authority will be cancelled. We refer you to our brochure Standard Non-Cash Payment Products.

Our Fees and Charges

We will make available to you a Fees and Charges brochure at the time you open an account and at any other time at your request.

Current fees for payments and other services include:

* Dishonour fee - Dishonoured cheques and Direct debits
* Returned External Periodical Payment
* Cairns Penny Savings & Loans Corporate Cheque
* Copy of statement already issued & archived
* Coin Counting (loose coins over $30 value)
* Special Clearances
* Referral Fee
* Cheque Book Fee
* Duplicate deposit book
* Manual Banking (going via courier)
* Immediate Manual Banking ( unable to go via courier)
* Cheques deposited
* Member Cheques
* Direct Entry Outwards
* Direct Debits

We may, at our discretion, honour a cheque, periodical payment or direct debit transaction. If your Account becomes overdrawn for any reason, immediate repayment is required and we may charge you a fee and interest on the overdrawn amount as well as any reasonable legal fees we incur in obtaining the amount from you. Interest will be charged at the current unsecured overdraft rate.

We may debit these charges to your account or ask you to pay for them by another means.

Additional Services

Written authorisation including any information and instructions we may need, may be required from you in order for us to provide some of the services outlined in this brochure.

You may stop or alter your instructions to us by contacting us by telephone or in writing.

Third Party Services - Fees and Charges

We may charge you a fee or charge for providing a service including fees and charges passed on from third parties. These fees or charges are intended as a means of re-imbursement of third party charges.

Additional Services include

* Bank cheques
* Telegraphic transfers (overseas)
* Electronic credit transfers (within Australia)
* Telegraphic transfers within Australia

We shall confirm these third party fees and charges in the next periodic statement we issue you or in the next passbook entry we make.

Bank Cheques

Agency

We offer a Bank Cheque service on behalf of Westpac Bank which allows us to request bank cheques for you.

Fees and Charges

We will pass on any fees imposed by Westpac Bank for issuing, replacement and repurchase of bank cheques.

Member Cheques

A Cheque book facility is available for both adult members (18 years and over) and business account holders. You can arrange a cheque book facility by signing an Application for Member Cheque Scheme. Sweep facilities are available. A sweep facility enables you to link your cheque account to another account with the Cairns Penny Savings & Loans, to ensure sufficient funds are available to cover cheques written out.

For full details of terms and conditions in relation to Member Cheques we refer you to the section entitled Member Cheque Scheme..

Change of name or address

You must tell us as soon as there is a change to your name or address. If you change your address and don't tell us, we can still give notice to you by writing to the address last recorded with us.

Privacy

Please see our Member Services Guide (MSG) for details on Cairns Penny Savings & Loans member privacy policy and procedures.

If You Have a Complaint

Contact the General Manager Direct on Ph (07) 40314460.

If you need further assistance, you can use our internal dispute resolution service: see our Member Services Guide for details.

We also belong to the Financial Co-Operative Dispute Resolution Scheme (FCDRS) and they may be contacted by telephone on Ph 1300139220 (local call rate within Australia).

This way, if we cannot resolve your dispute with us, you can have the matter determined independently by FCDRS.

Member Cheque Scheme

Following are the Terms and Conditions of the Member Cheque Scheme as arranged with Westpac Banking Corporation and Indue Ltd.

1. In signing the Application (or upon prior issue by you of a cheque or the making of a deposit under the Scheme) you, the member, acknowledge that (subject to Cairns Penny Savings & Loans Limited acceptance) you agree to these terms and conditions and that you have appointed both the Cairns Penny Savings & Loans and Indue Limited ("Indue") as your agent and that you have authorised each of them to:

a. Conduct accounts ("'the Bank Account') with Westpac Banking Corporation ('the Bank") to enable you to draw cheques for payment for goods and services out of the funds in your account with the Cairns Penny Savings & Loans which is dedicated either exclusively or otherwise to the Member's Cheque Scheme and make deposits to the Bank in accordance with these terms and conditions; and

b. Transfer funds to the Bank Account from your Cairns Penny Savings & Loans Account to meet the amount of cheques or payment orders ("a cheque") that you or your Authorised Signatories have signed and to meet the value of all costs, taxes or charges made or incurred by the Cairns Penny Savings & Loans or the Bank.

c. Disclose to the Bank such information relating to your Cairns Penny Savings & Loans Account as is necessary to process all transactions carried out by you.

2. It is your responsibility to ensure that all cheques drawn by you are properly authorised and completed. Any cheque presented for payment which is undated, unsigned or without a payee included may be dishonoured.

3. No cheques will be withdrawn at the Bank unless prior arrangements have been made between the member, the Cairns Penny Savings & Loans and the Bank. The Cairns Penny Savings & Loans shall accept no liability of any kind as a result of the party who presents a cheque for a special answer treating any lapse of time as a dishonour of the cheque.

4. If the amount of any cheque presented for payment to the Bank exceeds the Available Balance (as defined in Clause 5 below) in your Cairns Penny Savings & Loans Account at the time the cheque is presented, the Cairns Penny Savings & Loans will advise you in writing, by ordinary pre-paid post, as soon as practicable, but will incur no liability for failure to do so. Where the Bank refuses to pay a cheque in accordance with this condition, or in accordance with any other condition, the Cairns Penny Savings & Loans may, at its absolute discretion, debit to your Cairns Penny Savings & Loans Account any costs incurred through such refusal, any such costs shall be a debt from you to the Cairns Penny Savings & Loans.

5. The "Available Balance" includes any funds lodged in your Cairns Penny Savings & Loans Account any unused overdraft or other agreed credit facility made available for your Cairns Penny Savings & Loans Account. The Available Balance does not include deposits received but uncleared in accordance with the policy of the Cairns Penny Savings & Loans nor does it include interest accrued but not credited or deposits in transit.

6. If your Cairns Penny Savings & Loans Account is held in the name of two (2) or more persons, all funds in that account and the Bank Account will be held jointly. "The member" includes all such persons jointly and severally. If one of the parties should die, any balance in these accounts shall accrue in accordance with the law of survivorship for the time being in the State in which the Cairns Penny Savings & Loans is incorporated.

7. If you want to stop payment on any cheque, you must advise the Cairns Penny Savings & Loans before the cheque is presented to the Bank for payment. The Cairns Penny Savings & Loans is only required to instruct the Bank to stop payment on any cheque when the Cairns Penny Savings & Loans standard stop payment notice has been correctly completed, signed and delivered to the Cairns Penny Savings & Loans. The Cairns Penny Savings & Loans may elect, at its discretion, to instruct the Bank to stop payment on a cheque upon your telephone instructions pending written confirmation.

8. In the event that a correctly authorised and presented cheque exceeds the available balance of your Cairns Penny Savings & Loans Account the Cairns Penny Savings & Loans is authorised (but is under no obligation so to do), to transfer to that account from any other account or accounts held with the Cairns Penny Savings & Loans in the name or names of the member, sufficient funds (within the Available Balance of such other account or accounts) to allow payment of the cheque. The Cairns Penny Savings & Loans may, at its absolute discretion, debit a fee, as determined by the Cairns Penny Savings & Loans from time to time, to your Cairns Penny Savings & Loans Account for each and every such transfer, and such fee shall be a debt from you to the Cairns Penny Savings & Loans. Notwithstanding this condition, the Cairns Penny Savings & Loans shall be held harmless from any claim whatsoever from the member or any other person or organisation, should the Cairns Penny Savings & Loans fail or refuse to make such a transfer.

9. If the Cairns Penny Savings & Loans for any reason and without reference to you pays a correctly authorised and presented cheque that exceeds your Available Balance with the Cairns Penny Savings & Loans then you shall incur a debt to the Cairns Penny Savings & Loans for the amount by which the cheque exceeds the available balance. In such circumstances, the debt shall be repayable by you immediately upon the written demand of the Cairns Penny Savings & Loans. If you fail to repay such debt, then you shall be required to pay all costs and expenses whatsoever incurred by the Cairns Penny Savings & Loans in collection of that debt.

10. You acknowledge that the Bank may refuse to pay or dishonour any cheque that is drawn by you under the Scheme and presented for payment, regardless of the state of your account with the Cairns Penny Savings & Loans if:

a. The Bank receives a direction from Indue to dishonour the cheque, whether or not such direction is authorised or justified;

b. At the time of presentation of this cheque, or at any time within which the cheque may be dishonoured under the then current practice of bankers:

i. Indue fails or omits to pay to the Bank, an amount in cleared funds equal to the face value of the cheque:

ii. A petition is lodged or an order is made or a resolution is passed for the winding up of Indue or placing it under official management or any ground for its winding up has arisen or any meeting is convened for the purpose of considering any such resolution or any resolution for any arrangement or composition with creditors or a receiver of its undertaking or property to any part thereof is appointed or an Administrator is appointed or it stops payment generally or without the consent of the Bank ceases or threatens to carry on business or the major part thereof. Or;

c. The cheque drawing and deposit facility is terminated.

11. The Bank may disclose to the Cairns Penny Savings & Loans and to Indue all information relating to your participation in the Scheme and the transactions effected on your behalf.

12. You will pay such charges as shall be determined by the Cairns Penny Savings & Loans from time to time in relation to all transactions and to all cheques drawn on or deposits made to the Bank pursuant to the Member's Cheque Scheme.

13. You agree that the rights and liabilities of the Cairns Penny Savings & Loans in relation to its services pursuant to the Member's Cheque Scheme shall be as if the Cairns Penny Savings & Loans were a paying bank and collecting bank as defined by, or a banker as referred to, in the Cheques and Payments Orders Act 1986.

14. Any cheque received by the Cairns Penny Savings & Loans before it receives a written notice of cancellation or variation of authority may be paid by the Cairns Penny Savings & Loans in the normal course of business.

15. The terms and conditions of use may be varied from time to time. Following notice to you, the issue of a cheque by you or the making of a deposit under the Scheme will indicate your acceptance for the variation.

16. The Cairns Penny Savings & Loans reserves the right to withdraw the cheque drawing and deposit facility at any time. No cheques may be issued by you after the facility has been withdrawn.

Standard Non-Cash Payment Products

Following are the Terms and Conditions of the Standard Non-Cash Payment Products

Direct Debits

* By signing and providing a biller with a direct debit authority you authorise the biller to debit funds from your account;
* Our confirmation of a direct debit authority shall be made in the next periodic statement that you receive after the authority has been commenced;
* We are not advised by the biller when an authority has been established or discontinued by you.
* We will act on an electronic file to debit your account and remit the funds due to the biller;
* We accept no responsibility for the date the instruction is received and the date on which the debit is processed to your nominated account;
* Payments scheduled for a non business day will be processed on the next available business day;
* All requests to cancel a direct debit arrangement or an individual payment must be made direct to the biller receiving the payment;
* If insufficient funds are in the account when the direct debit request is received by us we may make the payment by utilising funds in an alternate account held by you;
* The direct debit payment will be dishonoured if there are insufficient funds in your accounts. A dishonour fee is payable in these circumstances. If we exercise our discretion to pay the direct debit resulting in the account becoming overdrawn, an excess fee may be payable. Refer to our Fees and Charges brochure for details.

Direct Credits

* We are not advised when a direct credit authority is established or discontinued by a member and will credit an account upon receipt of an electronic advice from another financial institution;
* Our confirmation of a direct debit authority shall be made in the next periodic statement that you receive after the authority has been commenced;
* We accept no responsibility for the date the instruction is received and the date on which the credit is processed to your nominated account;
* Credits scheduled for processing on a non business day will be processed on the next available business day;
* All requests to cancel a direct credit arrangement or an individual direct credit must be made direct to the crediting party;
* We reserve the right, upon a request made to it by the crediting party to reverse any direct credit and debit the member's account for any funds drawn against the funds credited prior to receiving notification of the reversal from the crediting party.

Periodical Payments

* Financial Institutions receive periodical payments as cleared funds on the next business day;
* Our confirmation of a direct debit authority shall be made in the next periodic statement that you receive after the authority has been commenced;
* While we endeavour to process a periodical payment in accordance with the member's instructions we accept no responsibility if any such transfer is or cannot be made and accordingly shall not incur any liability through our refusal or omission to make any or all of the payments instructed by the member or arising from any late payment or omission in following instructions;
* If a periodical payment cannot be processed on the due date due to lack of funds we will attempt to make the payment on the following 4 business days. If the payment cannot be processed due to insufficient cleared funds after 5 successive business days the payment will be rejected until the next scheduled payment date. If payment is rejected for 2 consecutive periods the periodical payment authority will be cancelled;
* We may in our absolute discretion conclusively determine the order of priority of payment of periodical payments;
* The periodical payment will be dishonoured if there are insufficient funds in your accounts. A dishonour fee is payable in these circumstances. If we exercise our discretion to pay the periodical payment resulting in the account becoming overdrawn, an excess fee may be payable. Refer to our Fees and Charges brochure for details.

Confirmation of Transactions

We will confirm transactions on your account, including use of these facilities, in periodic statements that we issue to you. We may not become aware of your access or closing of these facilities until presented with an authority by another party. Confirmation of your access and closure to these facilities will also be made by periodic statement.

Commission

The Cairns Penny Savings & Loans does not receive any commissions or other payments for providing these products.

Term Investments

Following are the Terms & Conditions of Term Investments

Introduction

You should carefully read these Terms and Conditions for your Term Investment Account(s):

* 1<3 months
* 3<6 months
* 6<12 months
* 12<18 months
* 18<24 months
* 24 months

In this document 'we', 'us' or 'our(s)' refers to Cairns Penny Savings & Loans Limited and 'you' or 'your(s)' refers to you the Member(s) or Account Holder(s).

Additional information and terms and conditions on all accounts, additional services and account operation are available on request from our Branch or by calling Cairns Penny Savings & Loans direct on (07) 40314460.

Account Opening

We reserve the right to not provide a Term Investment Account.

When you open an account you may have to quote your Tax File Number (TFN) to avoid having tax taken out of your interest payments.

You must complete an application form and account instructions to establish a Term Investment Account. A Term Investment Account will only be opened in the member(s) name(s).

Written notice is required to alter the instructions on a Term Investment Account.

Cairns Penny Savings & Loans Discretion

We may refuse to accept any application to open a Term Investment Account and may set maximum and minimum amounts for Term Investment Account deposits and terms.

Additional Information

General descriptive information on the operation of your Account(s) is available on request. Information on current interest rates and fees and charges is available on request from us, and in our Fees and Charges and Interest Rates brochures.

Account Statements

Account statements are sent bi-annually at the end of June and December. If you have a personal or business cheque facility, statements are sent monthly. Duplicate statements can be requested at any time, however a fee may apply.

You agree to notify us without delay of any change of address or any errors or unauthorised transactions on your statement.

If you are a joint Account holder of the same account, we will only send one statement of account to that address.

Term, Deposit and Interest Payments

Terms available for Term Investment Accounts:

1<3 months	interest is paid on maturity
3<6 months	interest is paid on maturity
6<12 months	interest is paid on maturity
12<18 months	Interest can be paid either monthly, annually and/or on maturity
18<24 months	Interest can be paid either monthly, annually and/or on maturity
24 months	Interest can be paid either monthly, annually and/or on maturity

A minimum deposit of $1,000 is required to open a Term Investment Account. The minimum deposit balance is subject to variation at the discretion of Cairns Penny Savings & Loans.

Cheques deposited to your account(s) will be credited conditionally. Amounts credited will be debited back to your account if the cheque is returned (dishonoured) by the receiving bank. Credits may not be available until we have been advised that the cheque has been cleared. If a cheque deposited is refused payment by the paying bank, we may charge a fee (see our Schedule of Fees and Charges brochure).

All cheques for deposit can only be accepted if in the name of the account holder, unless endorsement by payee to the Account Holder is evident on the reverse side of the cheque and there is satisfactory evidence of the identity of the endorser.

A cheque will not be accepted if it is 'stale', that is when the date of the cheque is more than 15 months past.

If a cheque deposited to your account is dishonoured, any interest accrued on the deposit from the day the cheque was credited to your account will be reversed by us.

Withdrawal Restrictions and Access Limits

Cairns Penny Savings & Loans will require at least 7 days written notice of your intention to withdraw all or part of the balance of a Term Investment Account before the end of its term. This is provided the remaining balance is equal to or above the minimum balance for that type of Term Investment Account.

If an investment is withdrawn early, an early redemption fee may apply and the annual percentage rate reverts to the rate applying to the term deposit at the time of lodgment for the period the term investment was actually invested.

We will deduct from the balance of the account the amount of any interest paid or credited which exceeds the interest payable on early withdrawal.

We may not allow a withdrawal unless we have proof of identity of the member making the withdrawal which is acceptable to us.

You may withdraw up to a maximum of $1,500 cash per day at Cairns Penny Savings & Loans. Cash withdrawals require written authorisation from the account holder. If you require a larger amount you must give 24 hours advance notice (verbal or written) to the Cairns Penny Savings & Loans.

We reserve the right to limit cash withdrawals to amounts deemed reasonable by Cairns Penny Savings & Loans. In some cases we may choose to provide one of our corporate cheques for amounts above $1,500.

Written authorisation is required from the member for a third party to conduct a cash/cheque withdrawal at the Cairns Penny Savings & Loans, and identification will be required from the third party.

Interest Rate

The interest rate on a Term Investment Account will not change during the term of the deposit, unless agreed between you and us. If we quote you an interest rate for a Term Investment Account, the rate may differ if the deposit is not made on the same day. Our current Interest Rate Brochure is available from our branch and our website www.cairnspenny.com.au.

Interest Calculation

Interest is calculated on daily balances. The daily interest rate is the relevant annual rate divided by the number of whole days in the year. We will not change the method of interest calculation or payment during the term of the deposit.

Variations

We may change the terms and conditions which apply to your Term Investment Account.
If we do so, we will notify you:
(a) at least 30 days before we introduce new fees or charges.
(b) no later than the day we change other terms and conditions which increase your obligations.
(c) in our next contact with you after changing other terms and conditions which reduce your obligations.

We may notify you by personal letter, newspaper advertisement, email, newsletter or account statement. You will be deemed to have received notice on the day on which the newspaper advertisement is published, or on the second day after the mailing of the letter, email, newsletter or account statement.

Government Charges

Certificates

Term Investment Certificates will be issued for all Term Investment Accounts on establishment and when individual deposits are re-invested.

Maturity of Term Investment Account

We will send you a letter of notification of maturity at the time of the maturity date for your Term Investment Account.

You may then nominate, prior to maturity, to have the principal on maturity renewed, transferred to a nominated account or paid by cheque.

If you do not nominate how the principal is to be repaid or interest paid within this time, we will re-invest the principal and interest in accordance with the account instructions we received from you when the Term Investment Account was established. If the deposit is re-invested by us, the interest rate and other conditions will be those applicable to any other Cairns Penny Savings & Loans Term Investment Account deposit of the same type, made on that day for the same amount and term.

Account Combination

We may appropriate the credit balance and/or shares held against any of your savings accounts towards repayment of a debt that you may owe us on any savings account. We will notify you promptly after doing so.

Account Closure

We may close your Term Investment Account should the balance of that deposit fall below minimum balance requirements. We will give you reasonable notice before doing so and will repay any credit balance and accrued interest.

Penalties and Restrictions

Refer Term Deposit and Interest Payments / Withdrawal Restrictions and Access Limits.

Joint Accounts Operation

Credit Balance Entitlement

The credit balance of a joint account is held jointly by all Account Holders. Each Account Holder has the right to all of the balance(s), jointly, with the other Account Holders.

Survivorship

If a joint Account Holder dies, the remaining Account Holder holds the credit balance and if more than one, those remaining Account Holders hold the credit balance jointly.

Authority / Disputes

Joint and Several Liability

Each joint Account Holder is liable for the whole of any debit balance on an account. We can sue all or any Account Holder(s) for an amount owing on the account.

Cheque Payees

We may accept a cheque into a joint account which is payable to any one or more of the joint Account Holders.

Authority To Operate

You may nominate a person to operate on your account by completing an "Authority to Operate" form, available at our Branch

By signing an Authority to Operate you instruct us to allow a person to be authorised to operate on your account and to conduct any transactions on the account, including:
(a) cancelling cheques;
(b) making withdrawals;
(c) authorising periodical payments and direct debits;
(d) using electronic and other access to your account; and
(e) Closing the account.

Method

The Authority to Operate will state the method of operation for the account. This may be:
(a) any Account Holder or signatory to sign (i.e. operate); or
(b) another method which you specify and which is acceptable to us.

Duration

Disputes

If there is a dispute notified to us about an Authority to Operate or the owner or owners of an account, we may refuse to allow operation on the account until all parties concerned have signed the necessary authority.

Identity

We will not allow a person to operate on an account until his or her identity has been verified in accordance with procedures prescribed by the Financial Transaction Reports Act and any other identification procedures we require.

Liability

We are not liable for any loss or damage caused to you by persons authorised to operate on your account, except where it arises from fraudulent conduct by our agent or employee or if we are liable under statute or the EFT Code.

We are not liable for any loss or damage caused by any delay in processing a cancellation of any Authority to Operate.

Privacy

Please see our Member Services Guide (MSG) for details on Cairns Penny Savings & Loans member privacy policy and procedures.

If You Have a Complaint

Contact the General Manager Direct on (07) 40314460.

If you need further assistance, you can use our internal dispute resolution service: see our Member Services Guide (MSG) for details.

We also belong to the Financial Co-Operative Dispute Resolution Scheme (FCDRS) and they may be contacted by telephone on Ph 1300 139 220 (local call rate within Australia)

This way, if we cannot resolve your dispute with us, you can have the matter determined by FCDRS.

Internet Banking

Following are the Terms and Conditions of Internet Banking.

Please read these Terms and Conditions of Use. They apply to all transactions initiated by you through Internet Banking through the combination of an identifier (Login name) and a password.

If you fail to properly safeguard your Cairns Penny Savings & Loans Ltd password for Internet Banking you may increase your liability for unauthorised use.

Your first use of Internet Banking will automatically constitute your understanding and acceptance of these Terms and Conditions of Use.

If these Conditions of Use are not clear to you, contact Cairns Penny Savings & Loans BEFORE using Internet Banking.

Important Points to Remember to Safeguard Your Account

. Memorise your password(s) and never store it(them) with or near your identifier;

. Never tell anyone your password;

. Don't choose a password that is easily identified with you e.g. your birth date, an alphabetical code which is a recognisable part of your name, or your car registration;

. Don't choose a password that is merely a group of repeated numbers or letters;

. Try to prevent anyone else seeing you enter your password when using Internet Banking;

. Don't record your password anywhere near the equipment used to access Internet Banking;

. Change your password at frequent intervals;

. Always ensure that you have logged-off your internet banking session and closed the internet browser when you have finished or leave the computer;

. Immediately report the loss, theft or unauthorised use of your identifier and password(s) to Cairns Penny Savings & Loans;

. Examine your account statement as soon as you receive it to identify and report, as soon as possible, any instances of unauthorised use.

1. Introduction

Generally speaking, these Terms and Conditions apply to Internet Banking identifiers used in conjunction with a password to perform electronic transactions.

In accepting your password from Cairns Penny Savings & Loans you acknowledge that you have read, and understand these Terms and Conditions of Use and are obliged to comply with them.

2. Application of Codes

Cairns Penny Savings & Loans warrants that it will comply with the requirements of the Electronic Funds Transfer Code of Conduct as established by the Australian Securities and Investments Commission (EFT Code).

The EFT Code does not apply to accounts used primarily by a business for business purposes.

If you would like a copy of the Code you should contact Cairns Penny Savings & Loans.

3. Password Secrecy

You agree that:

. You will not record your password on anything with or near your identifier;

. You will not record your password anywhere near the equipment used to access Internet Banking;

. You will not tell anyone your password or let anyone see it;

. You will try to prevent anyone else seeing you enter your password when using Internet Banking;

. You will change your password at frequent intervals;

. If you think that your password has become known to someone else, you will notify Cairns Penny Savings & Loans immediately.

In certain circumstances you may be liable for transactions that occur on your account if you have disclosed your password to someone else (refer clause 11).

4. Reporting the Loss or Theft of Your Identifier and Password

If you believe your identifier and/or password have been lost, stolen or have become known to someone else, you should IMMEDIATELY report this to Cairns Penny Savings & Loans and change your password through Internet Banking. During business hours contact Cairns Penny Savings & Loans immediately, if outside business hours you must notify Cairns Penny Savings & Loans by 9 am the next working day by either visiting our offices or phoning Cairns Penny Savings & Loans on (07) 4031 4460.

5. Using Your Identifier and Password

When you apply for access to Internet Banking you are given an initial password which you must enter to access Internet Banking within 24 hours. The first time you access Internet Banking you will be asked to select a new password before using any functions. If you forget your password for Internet Banking you will need to make a new application as Cairns Penny Savings & Loans does not have access to passwords once changed by Members.

Cairns Penny Savings & Loans will advise you:

. What transactions your identifier and password will enable you to perform in Internet Banking;

. The accounts that may be accessed using your identifier and password including any credit facility which may be accessed.

Cairns Penny Savings & Loans will debit and credit your linked accounts with the value of all transactions carried out using your identifier and password to use Internet Banking.

If any of your linked accounts is in the name of more than one person, then the liability of those persons under these Terms and Conditions of Use is joint and several for transactions carried out on those accounts.

Transactions will not necessarily be processed to your account on the same day they occur.

You will continue to be liable to Cairns Penny Savings & Loans for the value of any debit transaction occurring after you have closed your accounts or after you have resigned your Membership with Cairns Penny Savings & Loans.

6. Transaction Limits

You agree that you will NOT use your access method in Internet Banking to:

. Overdraw the balance in any of your linked accounts; or

. Exceed the unused portion of your credit limit under any pre-arranged credit facility.

Cairns Penny Savings & Loans:

. May set limits on the minimum and maximum transaction amounts, on a daily or cumulative basis;

. Will advise you of the daily transaction limits at the time you apply for your access method.

7. Authorisations

You:

. Acknowledge that Cairns Penny Savings & Loans has the right to refuse authorisation for you to effect any transaction for any reason; and

. Agree that Cairns Penny Savings & Loans will not be liable to you or anyone else for any loss or damage that you or anyone else suffer as a result of Cairns Penny Savings & Loans' refusal to authorise any transaction.

8. Periodical Payments

Regular future payments (periodical payments) will only be processed if sufficient clear funds exist in the account at the time of processing. We do not have to advise you if a periodical payment is not made. When we make a periodical payment we are not acting as your agent or the agent of the payee. If a periodical payment cannot be processed on the due date due to lack of funds we will attempt to make the payment on the following 4 business days. If the payment cannot be processed due to insufficient cleared funds after 5 successive business days the payment will be rejected until the next scheduled payment date. If the payment is rejected for 2 consecutive periods the periodical payment authority will be cancelled. We also refer you to our brochure Standard Non-Cash Payment Products.

9. Cancellation Of Access

Cairns Penny Savings & Loans may demand that you cease using your access method at anytime:

. for security reasons; or

. if you breach these Terms and Conditions of Use or the terms and conditions of the accounts linked to Internet Banking.

You may cancel your access to Internet Banking at any time by giving Cairns Penny Savings & Loans written notice.

10. Conditions after Cancellation or Expiry Of Access

Cancellation of access may not take place immediately, particularly when our systems are not available. You remain liable for any transaction you perform using your identifier and password after notice of cancellation.

11. Your Liability In Case Your Access Method Is Lost Or Stolen In The Case Of Unauthorised Use

1. You are not liable for any unauthorised use of your access method in Internet Banking;

(a) In relation to a transaction processed by Internet Banking before you have actually received your password;

(b) after you have reported the password lost or stolen under paragraph 4; and

2. For the purpose of paragraph 11(1)(c) you will be taken to have contributed to any loss caused by unauthorised use of your access method if in relation to transactions carried out using your identifier and password through Internet Banking, you:

(a) voluntarily disclose your password to anyone, including a family Member or friend;

(b) voluntarily allow someone else to observe you entering your identifier and password when using Internet Banking;

(d) write or indicate your password (without making any reasonable attempts to disguise the password) on any article carried with your identifier;

(e) allow anyone else to use your identifier and password;

(f) unreasonably delay notification of:

(I) your identifier or password record being lost or stolen; or

(ii) unauthorised use of your access method; or

(iii) the fact that someone else knows your password.

3. If you are taken to have contributed to the unauthorised use of your access method under paragraph 11(2), your liability will be the lesser of:

(a) the actual loss when less than your account balance (including the unused portion of your credit limit under any pre-arranged credit facility);

(b) your account balance (including the unused portion of your credit under any pre-arranged credit facility); or

(c) an amount calculated by adding the actual losses incurred for each day, up to the current daily transaction limit, on which unauthorised use occurred before you reported the loss, theft or unauthorised use of your access method, up to and including the day you make your report.

4. In determining liability under paragraph 11(3):

(a) where your access method has been lost or stolen, the number of days will be calculated by reference to the day when you should reasonably have become aware that it was lost or stolen; and

(b) the current daily withdrawal limit is the limit applicable at the time of the transaction as set by Cairns Penny Savings & Loans for your access to Internet Banking.

5. Where it is unclear whether or not you have contributed to any loss caused by unauthorised use of your access method, your liability will be the lesser of:

(a) $150;

(b) your account balance (including the unused portion of your credit limit under any pre-arranged credit facility); or

6. In determining your liability under paragraph 11(5):

(a) Cairns Penny Savings & Loans will consider all reasonable evidence including all reasonable explanations for an unauthorised use having occurred; and

(b) the fact that an account is accessed with the correct password, while significant, is not of itself conclusive evidence that you have contributed to the loss.

7. Your liability for such losses occurring as a result of unauthorised access will be determined under the EFT Code. The guidelines set out at the beginning of these conditions of use to safeguard your account, are guidelines only.

12. Resolving Errors on Account Statements

If you believe a transaction is wrong or unauthorised or your account statement contains any instances of unauthorised use or errors, you must immediately notify Cairns Penny Savings & Loans. As soon as you can, you must also provide Cairns Penny Savings & Loans with the following:

. your name, address and Member number;

. details of the transaction or the error you consider is wrong or unauthorised;

. a copy of the account statement in which the unauthorised transaction or error first appeared;

. the dollar amount and an explanation as to why you believe it is an unauthorised transaction or an error.

If Cairns Penny Savings & Loans is unable to settle your complaint immediately to your satisfaction, it will advise you in writing of the procedure for further investigation and resolution and may request further relevant details from you.

Within 21 days of receiving these further relevant details from you, Cairns Penny Savings & Loans will:

. advise you in writing of the results of its investigations; or

. advise you in writing that it requires further time (not exceeding a further 24 days) to complete its investigation.

Where an investigation continues beyond 45 days, Cairns Penny Savings & Loans will provide you with the reason for the delay, monthly updates on the progress of the investigation and a date when a decision can be reasonably expected, except in cases where Cairns Penny Savings & Loans is waiting for a response from you and you have been advised that Cairns Penny Savings & Loans requires such a response.

If Cairns Penny Savings & Loans finds that an error was made, it will make the appropriate adjustments to your account including interest and charges (if any) and will advise you in writing of the amount of the adjustment.

If:

1. Cairns Penny Savings & Loans is a party to an Industry Dispute Resolution Scheme; and

2. That scheme provides a matter can be heard under the scheme if Cairns Penny Savings & Loans does not give a final decision on the matter within a specified time;

Cairns Penny Savings & Loans will advise you in writing about the option of taking the matter to the Scheme within 5 business days after the specified time period expires.

When Cairns Penny Savings & Loans advises you of the outcome of its investigations, it will:

. Give you reasons for its decisions by reference to these Conditions of Use and the EFT Code of Conduct;

. advise you of any adjustments it has made to your account; and

. advise you in writing of other avenues of dispute resolution (including Consumer Affairs Agencies and Small Claims Courts) if you are not satisfied with Cairns Penny Savings & Loans' institution's decision, including the right to request that the decision be reviewed by Cairns Penny Savings & Loans' senior management.

If Cairns Penny Savings & Loans decides that you are liable for all or any part of a loss arising out of unauthorised use of your access method, it will:

. give you access to copies of any documents or other evidence it relied upon; and

. advise you whether or not there was any system malfunction at the time of the transaction.

If Cairns Penny Savings & Loans fails to carry out these procedures or causes unreasonable delay, Cairns Penny Savings & Loans will be liable for the amount of the disputed transaction where its failure or delay has prejudiced the outcome of the investigation.

13. Malfunction

Cairns Penny Savings & Loans may in certain circumstances be liable to customers for loss suffered by the customer which is caused by the failure of Cairns Penny Savings & Loans' system or equipment to complete a transaction accepted by that system or equipment in accordance with your instructions.

Where you are aware, or should have been aware, that Cairns Penny Savings & Loans' system or equipment was malfunctioning or unavailable, Cairns Penny Savings & Loans' liability is limited to the correction of any errors and the refund of charges and / or fees imposed on you as a result.

Cairns Penny Savings & Loans is not liable to you where Cairns Penny Savings & Loans' system or equipment had not accepted the transaction.

14. Statements and Receipts

For transactions processed through Internet Banking you will have the opportunity to print a transaction record slip for each financial transaction carried out. You should obtain, check and retain all transaction record slips available to you for checking against your account statements.

Cairns Penny Savings & Loans will send you an account statement every 3 months. You may request more frequent account statements.

For accounts that have a pre-arranged credit facility attached, Cairns Penny Savings & Loans will send you an account statement monthly or as otherwise required by any applicable legislation, the EFT Code or the CU Code.

You may request a copy of your account statement at any time (fees will apply).

15. Fees and Charges

Cairns Penny Savings & Loans reserves the right to charge a fee for any transactions processed through Internet Banking or for issuing passwords or replacement passwords and Cairns Penny Savings & Loans is irrevocably authorised to debit your linked account with those fees.

You will be advised by Cairns Penny Savings & Loans of any applicable fees and charges at the time you apply for your password.

16. Government Fees and Charges

Cairns Penny Savings & Loans reserves the right to pass on to you any fees, charges, duties and taxes that are imposed on the use of Internet Banking by government or by any regulatory authority. Cairns Penny Savings & Loans is also irrevocably authorised to debit your linked accounts with those fees, charges, duties and taxes.

17. Changes to Condition of Use

Cairns Penny Savings & Loans reserves the right to change these Terms and Conditions of Use and to vary the fees and charges that apply to Internet Banking.

Cairns Penny Savings & Loans will notify you in writing at least 30 days before the effective date of a change if it will:

. Impose or increase charges for transactions processed through Internet Banking or for issuing passwords or replacement passwords;

. Increase your liability for unauthorised use; or

. Adjust daily transaction limits.

Cairns Penny Savings & Loans may notify you of other changes either through:

. Notices on, or sent with account statements;

. Notices on Internet Banking, or in our office; or

. Press advertisements;

and, in the last two cases, Cairns Penny Savings & Loans will give you written advice of the changes at the time of your next account statement after the change.

Written notice will not be given of a variation that is required by an immediate need for Cairns Penny Savings & Loans to restore or maintain the security of its systems or your linked accounts.

You will be taken to have received a written notice from Cairns Penny Savings & Loans under this paragraph in the due course of post if it is mailed to the last address for you known to Cairns Penny Savings & Loans. If a written notice is delivered to you personally the date of delivery is the date you receive the notice.

If you retain and use your access method after notification of any authorised changes your use of your access method shall be subject to those changes.

18. Exclusion of Cairns Penny Savings & Loans' Liability

Cairns Penny Savings & Loans bears no liability for any refusal of a merchant or agent to accept your transaction through Internet Banking.

Cairns Penny Savings & Loans does not give any warranty for any goods or services obtained from a merchant or agent through the use of Internet Banking. You acknowledge and accept that all complaints about these goods and services must be addressed to the supplier or merchant for those goods and services.

Cairns Penny Savings & Loans is not liable for the restrictions or limits that a third party may impose in relation to any transfers.

19. Other General Conditions

These Terms and Conditions of Use govern your Internet Banking access to your linked accounts at Cairns Penny Savings & Loans. Each transaction on a linked account is also governed by the terms and condition to which that account is subject. If there is any inconsistency between these Terms and Conditions of Use and the terms applicable to any of your accounts these Terms and Conditions of Use prevail except to the extent that they are contrary to any applicable legislation, or the EFT Code.

You agree that you will promptly notify Cairns Penny Savings & Loans of any change of address for the mailing of any notifications which Cairns Penny Savings & Loans is required to send to you.

Cairns Penny Savings & Loans may post all statements and notices to you at your registered address as provided for in Cairns Penny Savings & Loans' Constitution.

If your Internet Banking password is issued on a joint account each party to that account is jointly and severally liable for all transaction through Internet Banking.

20. Privacy And Personal Information

Cairns Penny Savings & Loans complies with the National Privacy Principles as set out in the Privacy Act 1988. You can access personal information Cairns Penny Savings & Loans holds about you and advise if any information held is inaccurate, incomplete or out of date.

To access personal information held about you or to request a copy of Cairns Penny Savings & Loans' Privacy Policy write to: The General Manager Cairns Penny Savings & Loans PO Box 5272 Cairns QLD 4870.

A copy of our Privacy policy can also be located on our website within our Member Services Guide.

21. Definitions

.ACCESS METHOD: The use of both the Identifier and Password together.

. CAIRNS PENNY SAVINGS & LOANS: Cairns Penny Savings and Loans Limited.

. IDENTIFIER: The code known to the user, which the user is not required to keep secret, used to access Internet Banking. (The identifier will generally be the Membership Number)

. INTERNET BANKING: Cairns Penny Savings & Loans' internet banking facility.

. LINKED ACCOUNT: An account you have with Cairns Penny Savings & Loans to which you may obtain access by use of Internet Banking.

. PASSWORD: The secret code known to the user to access Internet Banking.

. UNAUTHORISED USE: Use that is not authorised by you. Transactions carried out by you or by another person with your knowledge and / or consent are not unauthorised use.

22. Interpretation

For the purpose of these Terms and Conditions of Use, 'day' means a 24 hour period commencing at midnight Eastern Standard Time or Eastern Summer Time, as the case may be, in Sydney.

A reference to:

. One gender includes the other gender; and

. The singular includes the plural and the plural includes the singular.

A reference to any legislation or to any provision of any legislation includes any modification or re-enactment of it, any legislative provision substituted for it and all regulations and statutory instruments issued under it.

3. Governing Law

These Terms and Conditions and the transactions referred to herein shall be governed by and construed in accordance with the laws of the State of Queensland, Australia, and each party submits to the respective jurisdictions (including, where applicable, the non-exclusive jurisdictions) of the courts or tribunals of the State of Queensland, Australia. Any proceedings in respect of any cause of action arising under these Terms and Conditions shall be instituted, heard and determined in a court of competent jurisdiction in the State of Queensland , Australia .

BPay

Following are the Terms and Conditions of BPay.

Using BPay

You can use BPay to pay bills bearing the BPay logo from those accounts that have the BPay facility.

When you tell us to make a BPay payment you must tell us the Biller's code number (found on your bill), your Customer Reference Number (e.g. your account number with the Biller), the amount to be paid, the account from which the amount is to be paid and the date of payment.

We cannot effect your BPay instructions if you do not give us all the specified information, or if you give us inaccurate information.

You acknowledge that the receipt by a biller of a mistaken or erroneous payment does not, or will not, constitute under any circumstances part or whole satisfaction of any underlying debt owed between you and that biller.

Processing BPay Payments

Using the BPay service indicates your acceptance of these Terms and Conditions.

Payments can be made via Internet Banking or over the counter.

For payment requests made with the payment date being "today", the nominated account must have sufficient available funds at the time the payment request is made to meet the amount of the payment, or it will not be made. If your payment is made before the BPay cut off time (which is currently 4pm QLD time, but is subject to change) your payment will be processed that day. If your payment is made after that time your payment will be forwarded the following business day.

Payments may be forward dated up to 45 days into the future.

For forward dated payments, sufficient available funds must be held in the nominated account on the nominated date. The payment attempt may be made at any time during the nominated day including before normal business hours. If there are insufficient available funds at this time a further payment attempt will be made just prior to the BPay cut off time (which is currently 4pm QLD time, but is subject to change) on the nominated day. If there are insufficient available funds to meet the payment at this time the payment will not be made. No further attempt will be made to make the payment at a future date.

If a payment is not made due to insufficient available funds being in the account on the nominated day, Cairns Penny Savings & Loans may charge a dishonour fee.

Members who would like a payment made that has previously failed due to insufficient available funds will need to make another payment request via the BPay service for the new date the payment is to be made.

Where a successful payment request is made after the designated BPay cut off time set by Cairns Penny Savings & Loans and the payment date is set for "today", the account will be debited at the time the payment request is made but the amount debited will not be sent to the Biller until after the BPay cut off time on the following working day.

Where a successful payment is made on a weekend or public holiday, and the payment date is set for "today", the account will be debited at the time the payment request is made, but the amount debited will not be sent to the Biller until after the BPay cut off time on the following working day

Payment requests will only be able to be amended through Cairns Penny Savings & Loans if the payment has not been sent to BPay for processing. Amendments required after this time must be referred direct to the Biller

A payment can only be cancelled through Cairns Penny Savings & Loans if it has not been sent to BPay for processing. Cancellations after this time must be referred direct to the Biller.

Cairns Penny Savings & Loans will not be responsible:

• for any payment not being made due to any of the conditions set between BPay and the Biller company;

• for any payment not be made due to any condition of the agreement or arrangement between the Biller and yourself or for any payment not being made for any other reason;

• for any delay in receipt of a payment by a Biller; or

• if a Biller fails to credit payment to you even if it has been debited to your account at Cairns Penny Savings & Loans.

You are liable for all transactions carried out by your, or by anybody carrying out a transaction with your authority, regardless of when the transaction is processed to your account.

You are not liable for losses:

• that are caused by the fraudulent or negligent conduct of employees or agents of:

- Cairns Penny Savings & Loans; or

- any Biller; or

• that are caused by one transaction being debited twice to the same account.

BPay payments are irrevocable. No chargebacks or reversals will be provided through the BPay scheme where you have a dispute with the Biller about any goods or services you may have agreed to acquire from the Biller, including where the merchant may have failed to deliver the goods and services to you.

Fees may apply to this service. Please refer to our Fees and Charges Brochure for further information.

Any amendment to these terms and conditions will be advised to members by an advertisement in the national or local media, through a notice in a member newsletter or an account statement, or by way of an insert included with your statement.

Consequential Damage for BPay Payments

This clause does not apply to the extent that it is inconsistent with or contrary to any applicable law or code of practice to which we have subscribed. If those laws would make this clause illegal, void or unenforceable or impose an obligation or liability which is prohibited by those laws or that code, this clause is to be read as if it were varied to the extent necessary to comply with those laws or that code or, if necessary, omitted.

We are not liable for any consequential loss of damage you suffer as a result of using BPay, other than loss due to our negligence or in relation to any breach of a condition or warranty implied by the law of contracts for the supply of goods and services which may not be excluded, restricted or modified at all, or only to a limited extent.