General Conditions of AS LHV Pank

Effective as of 06.05.2023

General provisions
1. Definitions
  1. ‘Settlement Day’ – the day on which the payment service providers involved in the execution of the transfer order are open for settlement of the payment transaction. A settlement day is any day that is not a Saturday, Sunday, national or public holiday. More information about the Bank’s Settlement Days is available on the Bank’s Website.
  2. ‘Blocking’ – an activity as a result of which, at the Bank’s or the Customer’s initiative, the Customer’s right to carry out all or part of transactions or other operations is suspended.
  3. ‘Special Conditions’ – the standard conditions of a Service or a transaction established by the Bank, which are applicable to the relevant Service or transaction in addition to the General Conditions and the Service Conditions.
  4. ‘Group’ – the Bank and the companies belonging to AS LHV Group. A list of the companies belonging to the Group is available on the Bank’s Website.
  5. ‘Price List’ – the price list for the Services established by the Bank.
  6. ‘Internet Bank’ – the part of the Website that the Customer can access using the Security Elements.
  7. ‘Principles of Processing Customer Data’ – the principles established by the Bank and applied by the Bank for processing the Customer’s data, and which constitute a part of the General Conditions.
  8. ‘Customer Relationships’ – the legal relationships between the Bank and the Customer arising when the Customer uses or has used the Service or has contacted the Bank for the purpose of using the Service.
  9. ‘Customer’ – any natural or legal person who uses, has used or has contacted the Bank for the purpose of using the Service.
  10. ‘Third Party’ – a natural or legal person who is not a Party.
  11. ‘Account’ – an account opened by the Bank for the Customer where pursuant to the Agreements, the Customer’s money, securities and/or other assets are held.
  12. ‘Agreement’ – an agreement between the Bank and the Customer for provision of the Service including the General Conditions, Service Conditions and Price List, also the Special Conditions accepted by the Customer and other relevant annexes to the Agreement as specified in the agreement made with the Customer, or in the applicable conditions. For entering into the Agreement, the Customer submits an application for opening the Account and registering as the Customer pursuant to the procedure specified on the Website.
  13. ‘Bank’ – AS LHV Pank. The contact details of the Bank are published on the Website.
  14. ‘Party’ – both the Bank and the Customer.
  15. ‘Sanctions’ – restrictive measures, sets of measures or other national transactional restrictions imposed by an international organisation or state (e.g., Estonia, the European Union, the United Nations, the United States of America, the United Kingdom) against specific persons, states, territories, groups or regimes, prohibiting the making available of any funds or other assets, economic resources or financial or other related services to the sanctioned persons or entities.
  16. ‘Related Party’ – a person who has a common economic interest with the Customer or who controls or is controlled by the Customer.
  17. ‘Service’ – a benefit offered or provided by the Bank to the Customer.
  18. ‘Service Conditions’ – the conditions of the Service established by the Bank constituting a part of any Agreement concluded for provision of the respective Service.
  19. ‘Strong Authentication’ – a form of identification that uses at least two elements that fall into the categories of knowledge (something known only by the Customer), possession (something possessed only by the Customer) or attribute (something inherent only to the Customer) and are independent of each other, so that a breach of one would not compromise the trustworthiness of the other, and designed to protect the confidentiality of the authentication data.
  20. ‘Security Elements’ – the unique username, PIN calculator or other similar means issued by the Bank to the Customer, which enables the Customer to log in to the Internet Bank or through which the Bank verifies the Customer’s identity.
  21. ‘Website’ – the Bank’s website at www.lhv.ee and its sub-sites.
  22. ‘General Conditions’ – these General Conditions of the Bank.
2. Applicability of the General Conditions
  1. The General Conditions establish the basic principles of Customer Relationships between the Bank and the Customer, the procedure for the communication between the Bank and the Customer, the General Conditions for entering into, amending, and terminating Agreements and for the exercise of rights and performance of obligations between the Bank and the Customer under Agreements.
  2. The General Conditions apply to all Customer Relationships. In addition to the General Conditions, the laws and regulations of the Republic of Estonia, the Service Conditions, the Special Conditions and other terms and conditions of the Agreements accepted by the Customer, the Price List, good banking practice, and the principle of good faith apply to Customer Relationships.
  3. The Parties are bound by the General Conditions in the Customer Relationships insofar as these are not in conflict with the Service Conditions.
  4. In the event that any legal relationship between the Bank and the Customer has been or may be subject to Special Conditions established by the Bank, the Service Conditions and the General Conditions apply to such legal relationship, with the exceptions arising from the Special Conditions. In the event of any conflict between the provisions of the Service Conditions and the Special Conditions, the provisions of the Special Conditions will prevail.
  5. The Parties are bound by the General Conditions, the Service Conditions, the Special Conditions, and the Price List insofar as these are not in conflict with the other terms and conditions of the Agreement.
  6. The General Conditions, the Service Conditions, the Special Conditions, and the Price List are available at the Bank’s service centres and on the Website.
  7. The General Conditions, the Service Conditions and the Special Conditions are applicable to the Customer Relationships established prior to and continuing on the date of entry into force of the General Conditions or the respective Service Conditions or Special Conditions.
  8. In the event of any inconsistency or ambiguity between the Estonian and foreign language version of the General Conditions, the Service Conditions or the Special Conditions, the Estonian version will prevail.
3. Establishment and amendment of the General Conditions, the Service Conditions, the Special Conditions and the Price List
  1. The General Conditions, the Service Conditions, the Special Conditions and the Price List are established by the Bank.
  2. The Bank reserves the right to unilaterally amend the General Conditions, the Service Conditions, the Special Conditions and the Price List. The Bank notifies the Customer of any amendments to the General Conditions, the Service Conditions, the Special Conditions and the Price List in the Bank’s service centres, on the Website or by any other means chosen by the Bank (e.g., by post or through a daily national newspaper) at least 1 (one) month prior to the entry into force of such amendments, unless otherwise provided by law.
  3. If the Customer does not agree to the amendments, the Customer has the right to terminate the respective Agreement by giving notice to the Bank in writing or by any other means accepted by the Bank within the time limit specified in Clause 1.3.2 of the General Conditions and by performing all their obligations under the Agreement.
  4. The notice period set out in Clause 1.3.2 of the General Conditions will not apply if the change is caused by a reduction in the price of the Services, a change in other terms and conditions of the Agreement that is more favourable to the Customer (including the granting of additional rights to the Customer) or the addition of new Services to the Price List.
  5. The Bank reserves the right to unilaterally amend the Price List, the Service Conditions, and the Special Conditions without prior notice, unless it is prohibited by law. In such event the Bank immediately notifies the Customer of the amendments in its service centres, on the Website or in another manner (e.g. by SMS, by post or in a national daily newspaper).
  6. In the case referred to in Clause 1.3.5, the Customer has the right to cancel the amended Agreement within 14 (fourteen) days of the entry into force of the amendment by giving notice to the Bank in a reproducible form. In the event of cancellation of the Agreement, both contracting Parties are released from their contractual obligations, but the rights and obligations that have accrued up to the cancellation of the Agreement remain in force.
  7. If the Customer does not exercise the right to cancel the Agreement set out in clauses 1.3.3 and 1.3.6 of the General Conditions, the Customer is deemed to have accepted the amendments made and has no claims against the Bank arising from the amendments to the General Conditions, the Service Conditions, the Special Conditions or the Price List.
Identification and representation
1. Identification
  1. The Bank is obliged to verify the identity of the Customer and the Customer’s representative when establishing the Customer relationship, including the conclusion of the Agreement and provision the Service.
  2. The Customer and the Customer’s representative are obliged to submit to the Bank the data necessary to establish the identity of the Customer and the documents required by the Bank.
  3. Natural persons are identified on the basis of the identity documents (e.g., passport, Estonian identity card, Estonian driving licence) and/or other documents required by the Bank in accordance with applicable legislation.
  4. Estonian legal persons or branches of foreign companies registered in Estonia are identified on the basis of a valid printout of the data of the relevant register with legal significance and/or other documents required by the Bank.
  5. A foreign legal person is identified on the basis of an extract from the relevant foreign register or registration certificate and/or other documents required by the Bank.
  6. Pursuant to the Agreement between the Bank and the Customer, the identity of the Customer or the Customer’s representative may be verified via technical communication channels accepted by the Bank, including the use of Security Elements or any other digital identification certificate that meets the requirements of the Bank and is protected by a security code.
2. Representation
  1. The Customer’s funds or other assets may be disposed by a person other than the Customer whose power of representation is accepted by the Bank.
  2. At the Bank’s request, the Customer who is a natural person is obliged to execute the transaction in person and the Customer who is a legal person is obliged to execute the transaction through their legal representative.
  3. The Bank is not obliged to accept a document evidencing the right of representation if the right of representation is not clearly and unambiguously expressed.
  4. The document certifying the right of representation must be formalised in accordance with the procedure laid down in the legislation and in compliance with the Bank’s requirements.
  5. The Bank has the right to require that the document evidencing the right of representation, executed outside the Bank, be notarised or certified in an equivalent manner.
  6. The Customer is obliged to inform the Bank of the revocation or invalidation of a notarised or certified power of attorney, even if such notice has been published in the Official Announcements.
3. Requirements for documents
  1. The Customer is obliged to submit to the Bank the original documents or notarised copies of the documents or copies certified in an equivalent manner.
  2. The Bank is entitled to assume that the document provided by the Customer is genuine, valid and correct.
  3. The Bank has the right to require that a document issued in a foreign country be legalised or attested by the apostille, unless otherwise specified in a treaty between the Republic of Estonia and the respective foreign country.
  4. In the case of a document in a foreign language, the Bank has the right to request a translation of the document into Estonian or another language accepted by the Bank. At the Bank’s request, the translation must be certified by a notary public or a sworn translator.
  5. Costs incurred in bringing the documents into compliance with the Bank’s requirements are borne by the Customer.
  6. The Bank has the right to make a copy of the document submitted by the Customer or, where possible, to retain the original of the document.
  7. If the Customer has submitted a document that does not meet the Bank’s requirements or the Bank has doubts as to its accuracy, the Bank has the right to require the Customer to submit additional documents or to refuse to execute the Customer’s order.
  8. The Bank has the right to consider the document certifying the Customer’s right of representation as valid until the Bank has received documents confirming the amendment or expiry of the Customer’s right of representation.
4. Signature
  1. The Bank accepts the handwritten signature of the Customer or their representative and the digital signature associated with the Estonian identity card.
  2. The Bank and the Customer have agreed that as of the date specified by the Bank, the Parties may start signing documents in their communication as follows:
    1. with a digital signature, other than the digital signature referred to in Clause 2.4.1, issued by a certification service provider acceptable to the Bank and complying with the Bank’s requirements;
    2. in cases otherwise agreed in the Agreement, by means of codes transmitted in the manner provided for in the Agreement.
  3. The Bank has the right to require a signature at the Bank. If it is not possible to sign at the Bank, the Bank has the right to require the signature to be notarised or certified in an equivalent manner.
Banking secret and processing of the Customer data
1. The Bank keeps the data and evaluations constituting a banking secret confidential in accordance with conditions set in the legislation.
2. The terms and conditions of processing of Customer data, including information on how and under what conditions the Bank processes the Customer data, what the Customer’s rights are and how the Customer can exercise their rights, are described in the Principles of Processing Customer Data.
3. By contacting the Bank, the Customer agrees to the rights of the Bank and other persons belonging to the Group arising from Clause 3 of the General Conditions and from the Principles of Processing Customer Data and consents to the processing of their data in accordance with Clause 3 of the General Conditions and the Principles of Processing Customer Data for the duration of the Customer Relationship. The Customer’s consent referred to in this Clause is considered as repeated every time the Customer enters into an Agreement, gives an order to the Bank or makes any other statement of intent addressed to the Bank.
Bank’s rights to prevent money laundering and terrorist financing and to impose Sanctions
1. In order to prevent money laundering and terrorist financing and to apply Sanctions, the Bank has the right to:
  1. regularly verify the identity of the Customer, the Customer’s representative, and any third party associated with the Customer, and obtain additional documents and information from the Customer (including information on residency, tax residency, founders, owners, directors, and beneficial owners of the legal entity);
  2. regularly request documents and information about the activities of the Customer and of any third party related to the Customer (including information about counterparties, transactions, and business activities), as well as documents and information about the origin of the Customer’s assets or wealth;
  3. require the Customer to provide all other documents and information and to perform all other acts necessary for the application of due diligence measures and Sanctions.
2. If the Customer fails to comply with the conditions set out in Clause 4.1 of the General Conditions, the Bank has the right or, in cases provided for by law, the obligation to refuse to provide the Service or to conclude the Agreement, to impose temporary or permanent restrictions on the use of the Service or to terminate the Agreement extraordinarily.
Entry into Agreements
1. The Bank has the right to decide with whom to enter and with whom not to enter into an Agreement.
2. The Bank has the right to refuse to conclude a payment service agreement if there is a valid reason for doing so. In the event of refusal to conclude a payment service agreement, the Bank considers as a valid reason in particular, where the person or a person related to them:
  1. does not comply with the conditions set out in the law, the General Conditions or the relevant Service Conditions, or the contractual terms requested by the person do not comply with the foregoing;
  2. has intentionally or through gross negligence provided incorrect or incomplete information to the Group or refuses to provide information;
  3. fails to provide, at the request of the Group, sufficient information or documents to identify their identity, representative, beneficial owner or ownership structure, or fails to comply with the Group’s requirements;
  4. fails to provide, at the request of the Group, sufficient information or documents to prove the legitimacy of the origin of their assets or wealth or to apply the other due diligence measures described in Clause 4;
  5. is or has been, according to reliable and independent sources or the Bank’s internal information, involved in organised crime or other crimes of the first degree, money laundering, terrorist financing or the violation or evasion of Sanctions;
  6. is, or has been, linked to traditional sources of criminal income, including smuggling of excise goods or drugs, illegal arms trade, human trafficking, prostitution, etc.;
  7. is a high-risk person under the anti-money laundering and anti-terrorist financing rules applied by the Bank, or is operating in a country or in an activity which, in the opinion of the Bank, has an inadequate level of anti-corruption protection or a high-risk activity;
  8. relates, in the opinion of the Bank, to a person, business, territory, entity or regime subject to Sanctions;
  9. is engaged in an activity which, in the opinion of the Bank, is an activity subject to special requirements, or a similar activity, without holding a valid licence, business licence or similar entitlement;
  10. is in arrears or has repeatedly been in arrears with an obligation to the Group;
  11. has caused direct or indirect damage, or a real risk of damage, to the Group or has damaged the reputation of the Group;
  12. is a non-resident and does not have a reasonable interest in concluding a payment service agreement and/or does not have a sufficient link to Estonia.
3. A reasonable interest in concluding a payment service agreement and the existence of a sufficient link with Estonia is expressed in particular:
  1. in the case of a natural person whereby:
    1. the person lives, studies or works in Estonia or has a legal basis for residence in the European Union;
    2. the person owns immovable property in Estonia and needs a payment service agreement in order to pay fees;
    3. the person’s spouse, children or parents live(s) in Estonia;
  2. in the case of a legal person whereby:
    1. the person has a permanent establishment in Estonia (e.g., the person’s management, employees, offices or warehouse are located in Estonia);
    2. the person has a need to pay wages to employees working in Estonia under an employment contract;
    3. the person owns immovable property in Estonia and needs a payment service agreement to make payments to Estonian persons, or owns units, shares or stocks registered in the Estonian Central Register of Securities.
4. The Bank has the right to refuse to sign an Agreement if there are grounds to suspect the person or a person related to them of money laundering or terrorist financing.
5. The Bank has the right to refuse to sign a payment service agreement for any other reason deemed valid by the Bank. Such reasons are cases where the conclusion of a payment service agreement is prevented by a legal impediment, such as a limitation of legal capacity, a conflict or lack of rights of representation, or where a person is subject to liquidation proceedings, or the Bank has reasonable grounds to assume that liquidation proceedings will be opened, or a provisional administrator has been appointed pending the bankruptcy of a person, or a bankruptcy petition has been filed by the Bank against a person or a person related to this person.
6. Agreements are concluded, at the Bank’s discretion, in written form, in a form that can be reproduced in writing or in electronic form (e.g. via Internet Bank), unless a mandatory form is prescribed by legislation.
Exchange of information between the Bank and the Customer
1. Provision of information by the Bank
  1. The Bank provides the Customer with information (including statements of intent) in its service centres, on the Website, through the media or in any other agreed manner (e.g. by e-mail, by post or via Internet Bank). If the Customer has informed the Bank of their e-mail address and/or has access to the Internet Bank, the Bank has the right to send all notices (including notices of intent) to the Customer by e-mail or by publication in the Internet Bank, at the Bank’s discretion, unless otherwise required by law.
  2. Among other things, an overview of the risks associated with the provision of the Service and a description of the measures taken to protect the Customer’s rights are published on the Website and are available to the Customer.
  3. Personal notices sent by the Bank to the Customer are deemed to have been received by the Customer if the notice has been sent by the Bank to a contact address or number or e-mail address of the Customer or of a person authorised to receive notices on behalf of the Customer known to the Bank and the period of time usually necessary for the transmission of the notice by the appropriate means of communication has elapsed.
  4. If the Bank sends a personal notice to the Customer by publishing it on the Internet Bank, the notice is deemed to have been received by the Customer on the day of its publication.
  5. Unless expressly stated otherwise, the information provided by the Bank to the Customer is not intended as an offer or advice by the Bank to enter into a transaction (including investment advice).
  6. The Customer is obliged to verify the accuracy of the information contained in the notice received from the Bank without undue delay and to submit any objections to the Bank without undue delay upon receipt of the notice.
  7. If the Customer has not received from the Bank a notice which they could reasonably have expected to receive or the sending of which was agreed in the Agreement, the Customer must notify the Bank immediately, but no later than within a reasonable period of time from the day on which they could reasonably have expected to receive the notice or should have received it from the Bank in accordance with the Agreement. For the purposes of this Clause, a reasonable period is presumed to be 10 (ten) days.
2. Provision of information by the Customer
  1. The Customer transmits information to the Bank on paper, electronically by e-mail, via the Internet Bank or by any other means accepted by the Bank.
  2. The Customer is obliged to immediately inform the Bank in writing or in any other pre-agreed manner of all information and circumstances that are relevant to the relationship between the Customer and the Bank and/or that affect or may affect Customer Relationships, including the following:
    1. changes to the Customer’s name, address, telephone number or other contact details;
    2. changes to the Customer’s and/or the Customer’s representative’s identity document details;
    3. loss or theft of an identity document or other means of identification (e.g. Security Elements) or if the Customer otherwise loses possession thereof against his or her will;
    4. changes to the rights of the Customer’s legal representative and/or the rights of a person authorised by the Customer;
    5. transformation, merger and division of a legal entity as the Customer and the declaration of bankruptcy, liquidation or deregistration of a legal entity as the Customer;
    6. any other information that the Customer is required to provide to the Bank under the Agreement.
  3. The obligation to provide information referred to in Clause 6.2.2 of the General Conditions also applies if the relevant information is available in a public register or is made public through the media or otherwise.
  4. If the Customer has failed to comply with the notification obligation, the Bank is entitled to presume the accuracy and completeness of the information known to the Bank.
Information about accounts and transactions
1. The Customer has the right to receive information about their Account balance, the transactions related to their Account, and other data related to their Account:
  1. on request of the Client in the Bank’s service centres or in any other agreed manner (e.g. via the Internet Bank);
  2. in the form of Account statements at least once a calendar month in accordance with the terms and conditions agreed between the Bank and the Customer, taking into account the provisions of law.
2. The Bank documents all transactions carried out on the Customer’s account and stores such data in accordance with the legislation. The Customer has the right to request from the Bank the submission of documents related to transactions made by the Bank under the terms and conditions provided for in legislation.
Customer's orders
1. The Customer may give orders to the Bank for execution and the Bank executes the orders in accordance with the law and the terms and conditions of the Agreement. The Customer submits their instructions to the Bank in writing or in any other manner agreed between the Bank and the Customer and in a format developed by the Bank (e.g. via the Internet Bank or by e-mail). Order forms are available on the Website and in the Bank’s service centres. It is the Customer’s responsibility to ensure that their arrangements comply with applicable law, the terms and conditions of the Agreement, and other relevant requirements and practices.
2. The Bank has the right to refuse to execute an order and to provide the Service or to suspend the execution of an order or the provision of the Service if the Bank suspects that the person giving the order and wishing to use the Service is not entitled to do so or that the order does not comply with the terms and conditions of the Agreement. The Bank has the right to verify the instructions given by the Customer via the Internet Bank or other means of communication in the manner chosen by the Bank. In the event that the Bank fails to verify or the Customer fails to confirm the issuance of the order and/or the information contained therein, the Bank has the right not to execute such order. Unless otherwise provided by law, the Bank will not be liable in such case for any loss or damage caused by the refusal to execute the order and to provide the Service.
3. The Bank has the right to record all orders and other communications (including telephone conversations) given by means of communication when using the Services and to use such recordings, if necessary, as evidence of orders given or other actions taken by the Customer (including in legal proceedings).
4. The Bank only accepts for execution a Customer’s order that has been given in accordance with the agreement between the Customer and the Bank, that has been formalised in accordance with the relevant regulations of Eesti Pank and the instructions and forms provided by the Bank, that does not contain inaccurate, incomplete or incorrect information and that clearly indicates the Customer’s intention.
5. It is the responsibility of the Customer, when submitting any order, to ensure that the necessary consents, including court consents where applicable, are in place.
6. The Bank is not liable for any errors, ambiguities, omissions, misrepresentations or mistakes in the order transmitted by the Customer to the Bank, unless otherwise provided by law. The same applies to the erroneous repetition of orders. In the case of doubt or ambiguity, the Bank has the right to request additional information and documents from the Customer and, pending their receipt and verification of the information contained therein, not to execute the order or not to comply with the order.
7. The Customer is obliged to ensure that the Account has the necessary funds to execute the order submitted to the Bank. If the Account does not have the necessary funds to execute the order, the Bank has the right not to execute the order. If, however, the Bank executes the Customer’s order, such execution is not considered granting overdraft or a short position to the Customer or any other similar transaction and the Customer is obliged to immediately transfer to the Account the funds that should have been in the Account for the execution of the order.
8. If the Bank has doubts as to the legality of the order, it has the right to request, at the Customer’s expense, additional confirmation in a form and manner acceptable to the Bank before executing the order.
9. The Bank may deviate from the Customer’s instructions if the Bank has reason to believe, under the circumstances, that the Customer would approve its actions.
10. If an order submitted by the Customer is incorrect or incomplete (including if not all the information required by the Bank for the execution of the order has been provided to the Bank), the Bank has the right to determine the manner of execution of the order in accordance with good banking practice and other relevant practices or to refuse to execute the order. Unless otherwise provided by law, the Bank is not liable for any order executed on the basis of the foregoing and is not liable for any loss or damage resulting from failure to execute the order.
11. The Bank has the right to transfer the performance of its obligation, in whole or in part, to a Third Party, if this results from the nature of the obligation or is more expedient for the performance of the obligation, taking into account the interests of the Customer.
12. The Bank is not liable for any deadlines or rules imposed by the Customer or the Third Party or for any damage caused by the Customer or the Third Party, unless otherwise provided by law.
13. The Bank may refuse to execute an order relating to another country (e.g., foreign currency, foreign payee, foreign payee’s bank) or impose restrictions on an order if this is required by the authorities or the bank of the country concerned.
14. The Bank has the right to refuse to accept and/or execute the Customer’s order if, in the Bank’s opinion, the Customer is acting inappropriately when giving the order or there is reason to believe that the Customer is acting under the influence of alcohol, psychotropic substances, narcotic drugs or other substances affecting normal and reasonable behaviour, or if the Bank has doubts as to the Customer’s capacity to act and make decisions and/or the Customer’s free will when giving the order to the Bank.
15. The Bank has the right to suspend the execution of the Customer’s order for the time necessary to obtain and assess the information and documents required to properly comply with the legislation on the prevention of money laundering and terrorism and the application of sanctions.
16. The Bank has the right to refuse to execute the Customer’s order or to impose restrictions on the order if the beneficiary of the payment is a sanctioned person, the beneficial owner of the legal person to whom the payment is made is a sanctioned person, or the transaction is contrary to a restriction arising from the Sanctions, or the purpose of the transaction may, in the Bank’s opinion, be to circumvent the Sanctions.
17. The Customer is obliged to create all the prerequisites and conditions necessary for the fulfilment of their order. If the Customer has not fulfilled this obligation, the Bank has the right not to execute the Customer’s order. Unless otherwise provided by law, the Bank is not liable for any damage caused to the Customer and/or Third Parties as a result of non-execution of the order.
18. The Bank executes the Customer’s orders accepted for execution in the chronological order of their submission.
19. An order transmitted to the Bank is valid until the order is executed or until the order is deemed cancelled by the Bank.
20. The Customer does not have the right to withdraw an order transmitted to the Bank and executed by the Bank. If the Bank, on the basis of a respective request by the Customer, cancels an order which has been accepted for execution, the Customer shall compensate the Bank for any and all costs and losses incurred and suffered in connection with assuming execution and/or cancellation of the order. The Bank has the right to refuse to cancel an order for execution at its own discretion.
21. If the Bank has given the Customer a term to eliminate the circumstance preventing the execution of the order and the Customer has not eliminated the aforementioned circumstance within this term, the order is deemed cancelled. The Bank has the right to cancel the order immediately if, in the reasonable opinion of the Bank, it is not possible for the Customer to eliminate the circumstance which is the basis for the suspension of the execution of the order.
22. The Bank informs the Customer of the cancellation of the order.
23. The Customer confirms that they are aware that:
  1. the Bank cannot fully guarantee the smooth operation of the information systems used by the Bank and/or the Third Parties for the execution of the order or the execution of the transaction, and therefore the Bank cannot exclude the possibility of delays in the transmission of the order and/or the execution of the transaction, and the Customer warrants and represents that upon sending orders he or she is aware of such risk and admits such possibility;
  2. it is not possible for the Bank to completely exclude the possibility of Third Parties interfering with, monitoring or otherwise influencing the transmission or execution of orders or the execution of transactions through the Internet Bank against the will of the Customer and/or the Bank, and the Customer agrees that such risk lies with the Customer.
Erroneous entries
1. If money or other assets have been transferred to the Account erroneously or unduly, the Customer is obliged to notify the Bank immediately upon discovery of the false entry and return the money or other assets to the Account designated by the Bank.
2. The Bank has the right to block and/or debit funds or other assets wrongly transferred to the Account without the Customer’s consent. The Customer does not have the right to give instructions in respect of assets erroneously transferred to the Account.
3. If the Bank has made a mistake in the execution of the Customer’s order with regard to the amount, the explanation, the reference number or other details of the payment or transfer of assets, the Bank has the right to debit the Account without the Customer’s consent in order to make a correction entry and to make the transfer in exact accordance with the details of the order.
4. If the Bank debits the Customer’s Account unduly (including, but not limited to, unjustifiably deviating from the Customer’s order), the Bank must credit the Account to the extent of the debit no later than on the next Settlement Day after receiving the relevant notification from the Customer.
5. The Customer is obliged to count the amounts deposited in cash into the Account prior to making a deposit and the amounts withdrawn from the Account immediately upon receipt, and to make complaints immediately and on the spot.
Account access restrictions
1. Blocking
  1. The Customer is obliged to give the blocking order to the Bank in writing at the Bank’s service centre or in any other manner agreed between the Bank and the Customer.
  2. When issuing a verbal blocking order, the Bank has the right to ask questions about the Customer requesting blocking on the basis of the information in the Bank’s database in order to verify the identity of the person. If the Bank has doubts as to the identity of the person, it has the right not to block the Account or Service. Unless otherwise provided by law, the Bank is not liable for any loss or damage caused by failure to block an Account or Service.
  3. The Bank has the right to block the Account and/or the Service if:
    1. the Customer’s Account does not contain enough funds or other assets to satisfy claims that the Bank or any person belonging to the Group has against the Customer;
    2. the Bank suspects the Customer of money laundering, terrorist financing or any other criminal offence (e.g. fraud) or of aiding and abetting such offence;
    3. the Bank suspects that the Customer or a person associated with the Customer or an order initiated by the Customer is related to a person, business, region or regime subject to Sanctions;
    4. the Bank suspects that the funds or assets in the Customer’s Account have been obtained as a result of a criminal offence or if the Bank becomes aware of circumstances that give rise to a need to clarify the legal origin of the Customer’s funds or assets;
    5. the Customer or the Customer’s representative fails to provide the documents required by the Bank to identify the rights of representation;
    6. the Bank has been provided with contradictory information about the persons holding rights of representation or with documents, the accuracy of which the Bank has reason to doubt;
    7. the Customer has not submitted the documents required by the Bank;
    8. blocking is, in the Bank’s opinion, necessary to prevent damage to the Bank, the Customer or a Third Party;
    9. the Account is fully or partially seized;
    10. the Bank has been provided with information about the death of the Customer evidenced by written documents or if the Bank has reasonable grounds to believe that the Customer or the Customer’s representative has died;
    11. the details of the means of communication provided by the Customer to the Bank (telephones, e-mail, postal mail, etc.) and/or the address of the Customer’s domicile/residence and/or other details concerning the Customer’s (business) activities prove to be incorrect and the Customer cannot be contacted through any of the means of communication last provided by the Customer to the Bank.
  4. The Bank unblocks the Account or the Service initiated by the Bank when the reason that led to the blocking has been eliminated.
  5. Unless otherwise provided by law, the Bank is not liable for any loss or damage resulting from the blocking of an Account or the Service.
2. Account seizure
  1. The Bank only seizes the Account at the request of a Third Party in the cases and in accordance with the procedure provided by law (e.g. at the initiative of a tax authority or a bailiff).
  2. The Bank releases the Account from seizure on the basis of a decision, order or injunction issued by a seizing authority, or on the basis of an enforceable court decision, or in other cases provided by law.
3. Succession
  1. The Bank makes payments from the deceased Customer’s account on the basis of a certificate of succession and/or ownership or other documents required by law or on the basis of a respective court decision.
4. Information system maintenance and development
  1. The Bank is entitled to carry out scheduled maintenance and development work of the information system. Wherever possible, the Bank carries out scheduled maintenance and development work during night time.
  2. In the event of extraordinary circumstances, the Bank has the right to carry out extraordinary maintenance or development work in order to prevent greater damage.
  3. For the duration of the maintenance or development work, the Bank’s obligations to the Customer under the Agreement are deemed suspended. Unless otherwise provided by law, the Bank is not obliged to compensate the Customer for any loss or damage caused to the Customer due to the non-performance of its obligations under the Agreement as a result of maintenance or development work.
Service fees, arrears and Bank’s claims
1. The Bank has the right to charge and the Customer has the obligation to pay a fee for the provided Service as set out in the Price List and/or the Agreement.
2. In addition to the items specified in the Price List and agreed in the Agreement, the Customer bears the Bank’s costs arising from the acts performed in the Customer’s interest (e.g. communication or postal charges, notary fees, etc.) and the costs related to the Customer Relationships (e.g. costs of establishment, management and realisation of collateral, insurance or legal expenses, etc.).
3. For the Services not specified in the Price List, the Customer pays the Bank according to the actual costs incurred by the Bank. In such a case, the Customer has the right to request an invoice from the Bank.
4. The Bank may, where possible, invoice the Customer electronically (including via the Internet Bank).
5. In the event that the Customer fails to fulfil its obligations to the Bank, the Customer undertakes to pay the Bank interest on arrears and/or the contractual penalty stipulated in the Price List or the Agreement.
6. The Customer is obliged to keep sufficient funds in the Account to enable the Bank to debit the Account for all fees and other amounts due and payable.
7. Unless otherwise agreed by the Parties, fees and other amounts due and payable are debited by the Bank from the Account with which the fees and other amounts due and payable are related to.
8. In the event that there are insufficient funds in the Account designated for the payment of fee or other amount due or payable, the Bank is entitled to debit the fees and other amounts due and payable from any Account, including from any foreign currency kept on the Account and from any amounts credited to the Account at any time even if after the amounts have become due and payable and before they are actually withheld by the Bank, the Customer has made other orders in respect of such amounts.
9. The Bank debits fees and other amounts due in euros or, in their absence, in another currency. Fees calculated in another currency and other amounts payable are converted into euros at an exchange rate established by the Bank.
10. Amounts owed to the Bank are retained by the Bank in the currency in which they are incurred. If there is no such currency on the Account, the Bank converts the required amount from another currency on the Account at an exchange rate determined by the Bank.
11. If there are insufficient funds on the Account to cover all fees and other amounts due and payable, the Bank determines the order in which obligations are to be met.
12. The Customer receives information regarding the deducted fees and the amounts and arrears withheld according to the Agreement or the Price List from the Account statement.
13. If a new currency is introduced instead of the former currency of the Customer Relationships, the Bank has the right to unilaterally change the currency of the Customer Relationships and to convert the financial obligations into the new currency based on the official exchange rate of that currency.
14. The Bank has the right to set off its claims against the Customer’s claims and to determine the claims to be set off, unless otherwise provided by law.
15. Unless otherwise provided by law, the Bank has the right to assign claims against the Customer to a Third Party.
Interest rates
1. The Bank calculates interest on the basis of the rate set out for the Service in the Price List or the Agreement.
2. The Bank has the right to unilaterally change the interest rate and the procedure for calculating the interest, unless the Agreement provides otherwise.
3. Interest is calculated and paid or debited in accordance with the Service Conditions.
4. If the law stipulates the obligation to pay income tax on interest, the Bank withholds income tax on the amount of interest disbursed on the basis and in accordance with the procedure laid down in the law. At the Customer’s request, the Bank issues a statement of the income tax withheld from the interest amount.
Liability
1. The Bank and the Customer perform their obligations arising out of Customer Relationships properly, reasonably, in good faith, with due diligence and pursuant to custom and practice.
2. The Parties are not liable for non-performance of an obligation if the non-performance has been caused by force majeure beyond the control of the Party in breach of the obligation and could not reasonably be expected to have been avoided.
3. Unless otherwise provided by law:
  1. the Bank does not provide tax or legal advice to the Customer, unless specifically agreed in the Agreement;
  2. the Bank is only liable for an intentional or grossly negligent breach of the Bank’s obligations under the Agreement;
  3. the Bank is not liable for any Services or information provided by Third Parties through the Bank, or for any other acts or omissions of Third Parties, including the performance of any obligations of Third Parties, or for any losses resulting from bankruptcy or insolvency;
  4. the Bank is not liable for consequential losses incurred by the Customer or for loss of income;
  5. the Bank is not liable for any loss or damage caused directly or indirectly to the Customer or a Third Party by the Customer’s failure to comply with or improper compliance with the obligation to inform referred to in Clause 6.2.2 of the General Conditions;
  6. the Bank is not liable for losses caused by changes in currency or security prices or other investment risks;
  7. the Bank is not liable for any loss or damage caused by the Bank’s unawareness of the lack of legal capacity of a legal person or the lack of legal capacity of a natural person;
  8. the Bank is not liable for any loss or damage caused by the exercise of due diligence measures;
  9. if according to the terms and conditions of the Agreement the Bank has the right to refuse to enter into a transaction or to refrain from executing the Customer’s order, block the Account or terminate the Agreement, the Bank shall not be liable for the damage or loss of the Customer or a Third Party arising from such circumstances.
4. The Customer undertakes to indemnify the Bank for any damage, including loss of income, expenses incurred, fines or income paid to Third Parties, resulting from the Customer’s breach of the requirements of the Agreement, any legislation (including foreign legislation), the rules of stock exchanges or securities registers or any other decision of the relevant competent body, or any incomplete, misleading or false statements or information provided by the Customer to the Bank.
5. If an unauthorised payment within the meaning of the Law of Obligations Act has been made using the lost or stolen Security Elements or if the Security Elements have been used in any other unauthorised manner and the Customer has not properly handled the Security Elements and there are no circumstances precluding liability as provided by law, the Customer is liable up to the amount of 50 euros. This limitation does not apply and the Customer bears all losses related to unauthorised payment transactions if the unauthorised payment is fraudulent on the part of the Customer or if the Customer has intentionally or with gross negligence breached:
  1. the obligation to use the Security Elements in accordance with the terms and conditions under which they are issued and used, including but not limited to, an obligation to do whatever is necessary, from the time the Security Elements were received, to keep the Security Elements and the assistive devices that enable their use secure;
  2. the obligation to immediately notify the Bank, or a third party that the Customer has been let known by the Bank for that purpose, of the loss, theft or unauthorised or improper use of the Security Element upon becoming aware of it;
  3. one or more of the terms and conditions for the issue and use of the Security Element.
6. The Customer shall not be held liable under Article 13.5, if:
  1. the Customer was not aware of the loss, theft or misuse of the payment instrument before making the payment, unless the Customer committed fraud; or
  2. the loss or damage occurs after the fulfilment of the obligation to notify set out in Clause 13.5.2;
  3. an unauthorised Payment Transaction was made without the Customer’s Strong Authentication, unless the Customer committed fraud;
  4. the loss or damage caused by an unauthorised Payment Transaction can be attributed to an act or omission of an employee, agent, branch or unit of the Bank to whom the Bank’s operations was delegated.
7. The circumstances limiting or excluding liability set out in Clauses 13.5 to 13.6 do not apply to a Customer who is a legal person.
Cancellation of the Agreement
1. The Bank has the right to unilaterally terminate the Agreement with a compelling reason without notice (extraordinary termination).
2. In particular, a compelling reason is when:
  1. the Customer or any person related to the Customer has breached any obligation arising from legislation or the Agreement. Such obligations include in particular:
    1. providing complete and accurate identification data;
    2. informing of any changes to the information contained in all Agreements or documents submitted to the Bank;
    3. providing sufficient and/or correct information and documents verifying the legality of the origin of their activities (including related persons, founders, owners, members of the management body of the legal entity, beneficial owners, turnover, business partners, the content of transactions and economic activities, etc.), the source of funds or other assets, or any other information and documents required for the application of the Bank’s due diligence measures, upon the Bank’s request, and within a reasonable period of time set by the Bank;
    4. the provision of factual information about their financial situation, if such information is important for the Bank to make credit decisions or other operations;
    5. the obligation to inform the Bank of any deterioration in the Customer’s financial situation or any other circumstance that may affect the Customer’s ability to duly perform their obligations to the Bank;
  2. the Bank suspects the Customer or a person associated with the Customer of money laundering or terrorist financing;
  3. the Customer is subject to Sanctions or the Customer's conduct breaches or is likely to breach a Sanction;
  4. the circumstances set out in Clauses 5.2.5-5.2.12 of the General Conditions become known about the Customer or a person associated with the Customer;
  5. the Customer has intentionally or due to gross negligence failed to comply with an obligation arising from a payment service agreement or other Agreement with the Group;
  6. the Customer or a person associated with the Customer has caused, intentionally or due to gross negligence, damage or a real risk of damage to the Group by an act or omission;
  7. the Customer or any person associated with the Customer has failed to perform an obligation under any agreement with the Group and this fact constitutes a compelling reason for the Bank to assume that the Customer or any person associated with the Customer continues to fail to perform its contractual obligations (e.g. the Customer or any person associated with the Customer has repeatedly failed to properly perform financial obligations);
  8. an event has occurred which, in the reasonable opinion of the Bank, may impede the Customer's ability to properly perform their obligations under the Agreement or have a material adverse effect on the Customer’s business or financial condition (e.g. bankruptcy, compulsory liquidation or liquidation proceedings of the Customer);
  9. the Customer has deceased;
  10. the legal person or sole proprietor has been deleted from the register;
  11. there are insufficient funds in the Account to meet the Customer’s obligations under the Agreements (including the payment of fees) and the Customer has not transferred sufficient funds for that purpose to the Account within 15 (fifteen) days after receiving the respective notice from the Bank;
  12. the termination of the Agreement is required by an Estonian or foreign supervisory authority or other government authority;
  13. the termination of the Agreement is required by the operator of the international settlement system (e.g. an international card organisation), the Bank’s correspondent bank or another bank;
  14. the Customer requests the termination or restriction of the processing of the Customer’s Personal Data and, in the opinion of the Bank, the Bank has the right and the need to process the Customer’s Personal Data in accordance with the General Conditions, the Service Conditions and/or the Principles for Customer Data Processing as a prerequisite for providing the Services to the Customer;
  15. in the opinion of the Bank, it is not possible to apply due diligence measures provided for by law to the Customer or any person associated with the Customer;
  16. the payment service agreement between the Customer and the Bank terminates.
3. Prior to the extraordinary cancellation of the Agreement, the Bank carefully considers all the circumstances and makes a decision based on the principle of reasonableness.
4. Unless otherwise provided by law or the Agreement, the Party has the right to terminate the Agreement by giving at least two (2) months’ advance notice to the other Party.
5. In the event of termination of the Agreement at the Bank’s initiative, the Bank has the right to refuse to transfer assets to an account other than the Customer’s account opened with a credit institution registered or established in an European Economic Area member state.
Resolution of disagreements
1. Disagreements between the Parties are resolved by way of negotiation.
2. If the Parties are unable to settle the disagreement immediately on the spot, the complaint must be made in writing or by other agreed means.
3. The complaint must refer to the facts and documents on the basis of which the complaint is made. If the Customer refers in the complaint to a document that is not freely available to the Bank, this document must be attached to the complaint.
4. The Bank reviews the complaint and notify its decision at the agreed time and in the agreed manner (e.g. verbally, in writing).
5. If the Parties fail to reach an agreement, the disagreement is settled by the Consumer Disputes Committee of the Consumer Protection and Technical Regulatory Authority or the County Court of the Republic of Estonia.
6. Legal disputes between the Parties are settled in the court of the location of the Bank unless the Parties have agreed otherwise or the law provides otherwise.
7. The Customer Relationship between the Parties is governed by Estonian law unless agreed otherwise by the Parties.
8. The Bank is supervised by the Financial Supervision Authority. The contact details of the Financial Supervision Authority and the list of the subjects of financial supervision, in which also the Bank is included, are published on the website of the Financial Supervision Authority at https://www.fi.ee.

General Conditions of AS LHV Pank

General provisions

Identification and representation

Banking secret and processing of the Customer data

Bank’s rights to prevent money laundering and terrorist financing and to impose Sanctions

Entry into Agreements

Exchange of information between the Bank and the Customer

Information about accounts and transactions

Customer's orders

Erroneous entries

Account access restrictions

Service fees, arrears and Bank’s claims

Interest rates

Liability

Cancellation of the Agreement

Resolution of disagreements

Cookies