General Terms and Conditions of Business

Notice on Amendments to the General Terms and Conditions of Business for Transaction Accounts and the Provision of Payment and Other Services at Hipotekarna banka AD Podgorica, effective as of August 28, 2025

Dear clients,

The amended General Terms and Conditions of Business for transaction accounts and the provision of payment and other services at Hipotekarna banka AD Podgorica – hereinafter: General Terms and Conditions of Business, effective as of August 28, 2025, have been aligned with the Law on Amendments to the Law on Payment Transactions (“Official Gazette of Montenegro”, No. 015/25 of February 20, 2025).

The key changes to the General Terms and Conditions of Business relate to:

Introduction of terms related to SEPA – area, payments, payment schemes, credit transfer, refund of funds, with a note that this service will be available at Hipotekarna banka after October 6, 2025;
Supplement to the Cut-off Time Schedule for the receipt and execution of transactions of Hipotekarna banka, which forms an integral part of the General Terms and Conditions of Business for transaction accounts and the provision of payment and other services at Hipotekarna banka AD Podgorica, in the part relating to the availability of funds after cash deposits to a payment account made by payment service users who are not consumers;
Amendment of the deadline regarding the Bank’s obligation to respond to a complaint submitted by a payment service user, which is now 15 working days from the date of receipt of the complaint, instead of the previous 15 calendar days;
Change of the name of the HB SMS Info service to HB Info service, due to the introduction of smartphone (mobile device) applications that support messaging.

If you have any questions regarding the amended General Terms and Conditions of Business, you may contact us by phone at 19905, or from abroad at +382 20 219905 (Contact Centre), or via email at kontakt@hb.co.me to obtain information on other ways to personally review the amendments to the General Terms and Conditions, as well as by visiting the nearest branch of the Bank.

If you do not agree with the proposed amendments to the General Terms and Conditions of Business, you may terminate the Framework Agreement without notice and without any fees.

The termination statement must be submitted to the Bank in writing to the address of the Bank’s branch no later than August 27, 2025.

If you do not submit a statement to the Bank within this period indicating that you do not agree with the amended General Terms and Conditions of Business, it will be deemed that you have accepted them. In the event that you reject the proposed amended General Terms and Conditions of Business, the Bank will terminate the Framework Agreement.

Hipotekarna banka

I INTRODUCTION

These General Terms and Conditions of Business for transaction accounts and the provision of payment and other services – hereinafter: General Terms and Conditions – define, by Hipotekarna banka AD Podgorica (hereinafter: the “Bank”), the manner of conducting business with transaction accounts, the execution of payment transactions, as well as the rights and obligations of the Bank and the Payment Service User. The General Terms and Conditions apply to the opening and maintenance of transaction accounts, the execution and recording of payment transactions, the formation and disposal of funds, reporting to the Payment Service User on account changes, accrual of interest on funds, calculation and charging of the Bank’s service fees, account closure, as well as the provision of payment services in accordance with applicable regulations.

Integral parts of these General Terms and Conditions are:

Cut-off Time Schedule for the receipt and execution of payment transactions
Excerpt from the valid Decision on the Bank’s Fee Tariff
Excerpt from the valid Decision on the Bank’s Interest Rates
The Bank’s exchange rate list applicable on the date of application, whether forming an integral part of an individual agreement or being available to Payment Service Users on the website www.hipotekarnabanka.com (“website”) or in the Bank’s organisational units – branches/sub-branches (“branches”).

Any reference to the General Terms and Conditions hereinafter shall also include a reference to the documents listed in the preceding paragraph.

The General Terms and Conditions form an integral part of the individual framework agreement on payment services (“Framework Agreement”), as well as of the agreement/order for a one-off payment transaction, and together with the documents referred to in the previous paragraph of these General Terms and Conditions, constitute the Framework Agreement and/or the agreement/order for a one-off payment transaction as a single whole.

The General Terms and Conditions, the Cut-off Time Schedule for the receipt and execution of payment transactions, the Excerpt from the valid Decision on Interest Rates, the Bank’s exchange rate list, and the Excerpt from the valid Decision on the Fee Tariff are available in written form upon opening a transaction account or executing a one-off payment transaction at all branches and on the Bank’s website.

In the event of any inconsistency between the Framework Agreement and the General Terms and Conditions and/or other acts of the Bank, the provisions of the Framework Agreement shall prevail, followed by the provisions of these General Terms and Conditions, and finally the acts of the Bank. By concluding the Framework Agreement, the Payment Service User confirms that they have been previously acquainted with these General Terms and Conditions, that they fully agree with them, and that they accept them. If the provisions of agreements governing contractual relations between the Bank and the Payment Service User prior to the introduction of these General Terms and Conditions, relating to account maintenance and the provision of payment services, are contrary to the provisions of applicable laws and/or these General Terms and Conditions, such provisions of previously concluded agreements shall cease to apply, and the provisions of these General Terms and Conditions and applicable laws shall apply instead.

The Bank may, on the basis of a separate agreement, entrust the performance of all or certain payment services to a third party, i.e. an agent. In such case, the agent shall provide payment services in the name and on behalf of the Bank, and the Bank shall be responsible for all actions and omissions of its agent in the performance of the entrusted tasks.

The Bank undertakes to provide the Payment Service User with information about itself as a payment service provider, about the use of the payment service, about the main characteristics of the payment service to be provided, and about the data necessary for the proper execution of a payment order, about fees, exchange rates and interest rates, about communication channels between the Bank and the Payment Service User, about protective and corrective measures, about amendments and termination of the agreement, about legal protection, as well as about other matters prescribed by applicable laws.

Terms used in the masculine gender shall be deemed to include the feminine gender as well.

II THE BANK – PAYMENT SERVICE PROVIDER

Name:	HIPOTEKARNA BANKA AD PODGORICA
Address:	Street-Josipa Broza Tita 67, 81 000 Podgorica, Montenegro
Registration number with CRPS:	40004632
Company registration number:	02085020
Tax identification number:	02085020
BIC/SWIFT:	HBBAMEPG
Transaction account with the Central Bank of Montenegro:	907-52001-93
E-mail:	hipotekarna@hb.co.me
Website:	www.hipotekarnabanka.com
Phone:	+382 77 700 001
Fax:	+382 77 700 071
Call centre:	19905/ for calls from abroad +382 20 219 905

Supervisory authority:	Central Bank of Montenegro
Operating licence issued by the Central Bank of Montenegro:	No. 0101-75/1-2002 dated December 17, 2002

III TERMS AND INTERPRETATION

In these General Terms and Conditions, the terms listed below shall have the following meanings:

Bank Acts	all documents and decisions adopted by the Bank’s bodies, its units and authorized persons, which are made available to the Payment Service User through certain distribution channels, and which regulate the rights and obligations of the Payment Service User and all other persons assuming rights and obligations towards the Bank, as well as of the Bank itself.
Apple Pay	A service that enables contactless payments using compatible Apple devices (iPhone, Apple Watch, iPad). Card data is secure as it is not stored on the device nor shared during payment. Apple Pay with Hipotekarna banka cards can be used at points of sale that support contactless payments, at ATMs that support contactless cash withdrawals, as well as online and within applications that support Apple Pay.
CVV/CVC code	CVV (card verification value) or CVC (card verification code) – a three-digit code on the back of the payment card used for internet transactions or MOTO/CNP transactions.
Global payment systems	include a set of functions, procedures, processes, rules and devices that enable a cardholder to execute a payment transaction and/or withdraw cash from payment service providers; within the meaning of these General Terms and Conditions, they refer to Mastercard and VISA International.
Value date of credit/debit	the date on which the Bank credits the account of the payment service provider of the payee or the transaction account of the Payment Service User.
Dynamic Currency Conversion (DCC)	A Bank service that enables a cardholder, issued by banks outside Montenegro, to choose the currency of their card (excluding EUR) as the billing currency when performing transactions at an EFT POS terminal or ATM, subject to a fee in accordance with the Decision on the Fee Tariff of Hipotekarna banka.
Distribution channels	all means and methods of remote communication through which access to, contracting and use of the Bank’s products and services is enabled, including the execution of certain transactions and exchange of information via electronic communication without the simultaneous physical presence of the Payment Service User and Bank employees, including in particular online banking, self-service devices such as ATMs and devices enabling deposits and/or transfers from a transaction account maintained by the Bank in the name of the account holder, etc.
Direct debit	a payment service for debiting a payer’s payment account, where a payment transaction is initiated by the payee based on the payer’s consent given to the payee, the payee’s payment service provider, or the payer’s payment service provider.
Member State	a Member State of the European Union or a signatory to the Agreement on the European Economic Area.
EFT POS Terminal	a device intended for accepting payment cards and authorising transactions.
E-commerce	a Bank service, a system for accepting and authorising transactions on the internet.
Electronic payment transaction	a payment transaction initiated and executed using an electronic platform or device, excluding transactions initiated by paper payment orders, mail or telephone.
FATCA	Pursuant to the Law ratifying the Agreement between the Government of Montenegro and the Government of the United States of America to improve international tax compliance and implement FATCA (Foreign Account Tax Compliance Act), financial institutions (banks, custodians, investment firms, certain insurance companies) with headquarters in Montenegro are obliged to identify US taxpayers and report on certain accounts and data.
Google Pay	a service enabling contactless payments using Android-based mobile phones. Card data is secure as it is not stored on the device nor shared during payment. Google Pay enables the use of Hipotekarna banka cards added to Google Wallet at points of sale supporting contactless payments, ATMs supporting contactless withdrawals, as well as online and within applications supporting Google Pay.
HB Info	a service enabling the Payment Service User to receive notifications via mobile phone to the number registered with the Bank, by SMS or via messaging applications supported by the Bank, regarding account balance, inflows and outflows, certain Bank services/products, information on payment cards and their usage, including benefits of special Bank programs.
Identification document	a document presented to the Bank by the Payment Service User for identification purposes, establishing identity, citizenship and residence, such as an ID card, passport, as well as identity documents for asylum seekers or persons under subsidiary protection issued in Montenegro.
Issuance of payment instruments	a payment service whereby the payment service provider, based on an agreement with the payer, undertakes to issue a payment instrument for initiating and processing payment transactions..
Unique identification code	a combination of letters, numbers or symbols assigned by a payment service provider to identify a Payment Service User and/or their transaction account used in a payment transaction (may be IBAN/BBAN/account number; BBAN is used domestically, IBAN internationally). IBAN is mandatory for SEPA credit transfers.
One-off payment transaction	a payment order containing information in accordance with the Law.
Specimen signature card	a list of signatures of authorised persons for disposal of funds on the transaction account, deposited on the Bank’s prescribed form.
Payment Service User	a legal entity, public authority, part of a foreign company, entrepreneur or other person performing activity in accordance with regulations, and a natural person using payment services as payer and/or payee.
Payment card user	a Payment Service User or a person authorised by the Payment Service User to use the payment card.
User manual	a written document describing the use of online banking, available on the Bank’s website. www.hipotekarnabanka.com
Contact address of the Payment Service User	the address provided to the Bank for receiving written notifications, if different from registered address/residence.
Credit transfer	a payment service whereby the payee’s account is credited based on the payer’s instruction.
International payment transaction	a payment transaction in which one payment service provider provides the payment service within the territory of Montenegro, while another payment service provider provides the payment service within the territory of a third country, as well as a payment transaction in which the same payment service provider provides the payment service for one payment service user within the territory of Montenegro, and for the same or another payment service user within the territory of a third country.
MOTO/CNP transaction	mail order/telephone order and card-not-present transactions not requiring physical use of the card.
Nalog za plaćanje	instrukcija koju Korisnik platnih usluga podnosi Banci, a kojom se traži izvršenje platne transakcije i koja sadrži sve zakonom propisane elemente, a prema obliku plaćanja može biti: nalog za uplatu, nalog za isplatu i nalog za prenos.
National payment transaction	an instruction submitted by the Payment Service User to the Bank requesting the execution of a payment transaction, containing all elements prescribed by law, and which, depending on the form of payment, may be: a payment order for deposit, a payment order for withdrawal, or a payment order for transfer.
Non-consumera	a retail client who, in payment service agreements covered by these General Terms and Conditions, acts within the scope of their registered business activity, as well as a legal entity.
Non-residenta	a person defined in accordance with the law governing the prevention of money laundering and terrorist financing.
Money remittance	a payment service whereby funds are received from the payer, without opening a payment account in the name of the payer or the payee, solely for the purpose of transferring the corresponding amount of funds to the payee or to another payment service provider acting for the payee and/or such funds are received for the payee and made available to that payee.
Funds	cash (banknotes and coins), funds in an account and electronic money.
Framework Agreement	an agreement on payment services governing the future execution of individual payment transactions, the conditions for opening and maintaining a transaction account, as well as services related to the transaction account.
Online banking	distribution channels through which the Bank enables the Payment Service User to use services related to transaction accounts via the internet (internet/electronic banking) – hereinafter: HBklik or via a mobile application previously installed on their mobile device – hereinafter: mHBklik. Online banking via the internet (HB klik) enables the Payment Service User to perform electronic payment transactions and/or other services enabled by the Bank at that time, via the internet and with the use of a token or m-token, such as submitting requests, receiving notifications and documentation from the Bank, etc. Online banking via the mobile application (mHB klik) enables the Payment Service User who has activated it to perform electronic payment transactions and/or other services enabled by the Bank at that time, via the mobile application and with the use of an m-token, such as submitting requests, receiving notifications and documentation from the Bank, etc.
Authorised person	a retail cleint is authorised by the Payment Service User – the holder of the transaction account – to dispose of funds in that account, in accordance with the Bank’s internal acts and the granted power of attorney.
OTP	One-time password – a one-time code used by the Payment Service User for the purpose of reliable authentication and authorisation of remote electronic payment transactions.
Sensitive payment data	data that may be used to execute fraud, including personalised security credentials, provided that, for the activities of payment initiation service providers and account information service providers, the name of the account holder and the account number shall not be considered sensitive payment data.
PIN (Personal Identification Number)	a personalised security credential/element – a personal secret password used for identification of the card user and/or authorisation of payment transactions, as well as for contracting other products and services.
mToken	a means of identification and authorisation installed by the Payment Service User on a mobile device within the mHBklik application, which generates time-limited one-time passwords used to identify that person and authorise payment transactions.
Token	a means of identification of the Payment Service User and authorisation of their payment transactions, which generates one-time passwords used to identify that person, i.e. to authorise payment transactions.
Bank branches	organisational units of the Bank (branches and sub-branches).
Consumer	a natural person who concludes a payment services agreement covered by these General Terms and Conditions for purposes not intended for their business activity, trade or profession.
Payer	a natural or legal person who has a transaction account and gives an order or consent for payment from that account or a natural or legal person who does not have a transaction account and gives a payment order.
Payment brand	a material or digital name, term, sign, symbol or their combination used to designate a card payment scheme within which payment transactions based on a payment card are executed.
Payee	a natural or legal person to whom the funds subject to a payment transaction are intended.
Payment service provider	persons who, in accordance with the Law, may provide payment services in Montenegro.
Payment transaction	a deposit, withdrawal or transfer of funds, initiated by the payer, on their behalf or by the payee, regardless of the obligations between the payer and the payee.
Remote payment transaction	a payment transaction initiated via the internet or a device that can be used for remote communication.
Acceptance of payment transactionsa	a payment service whereby a payment service provider, based on an agreement with the payee on acceptance and processing of payment transactions, transfers funds to the payee.
Personalised security credentials	personalised characteristics provided by a payment service provider to a payment service user for authentication purposes.
Payment instrument	a personalised device and/or set of procedures agreed between the payment service user and the payment service provider which the payment service user uses to initiate a payment order.
Payment card	a payment instrument of the Bank enabling its holder to pay for goods and services via an acceptance device or remotely and/or to deposit/withdraw cash, or to use other services at an ATM or another self-service device. The Bank is the issuer and owner of payment cards.
Cross-border payment transaction	a payment transaction in which one payment service provider provides the payment service in the territory of Montenegro, and another payment service provider in the territory of another Member State, as well as a payment transaction in which the same payment service provider provides the payment service for one payment service user in the territory of Montenegro, and for the same or another payment service user in the territory of another Member State of the European Union.
Authentication	a procedure that enables the payment service provider to verify the identity of the payment service user or the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials.
Confirmation of availability of funds	the Bank’s response “yes” or “no” to a request of a payment service provider issuing a payment instrument based on a payment card regarding the availability of funds in the account and shall not contain information on the account balance.
Strong Customer Authentication of the Payment Service User (SCA)	authentication based on the use of two or more elements belonging to the categories of knowledge, possession and inherence, which are mutually independent and known and possessed only by the user, meaning that the compromise of one does not reduce the reliability of the others, and which is designed in such a way as to protect the confidentiality of the data whose authenticity is being verified.
Business day	a part of the day during which the Bank or another payment service provider of the payee/payer, participating in the execution of a payment transaction, operates and enables the execution of the payment transaction to the Payment Service User.
Payment account	an account maintained by a payment service provider in the name of a payment service user, used for the execution of payment transactions.
Payment account with basic services – Basic account	a type of transaction account intended for natural persons – consumers, which the Bank opens and maintains in the currency that is legal tender in Montenegro, in accordance with the Law on the comparability of fees related to payment accounts for consumers, switching of payment accounts for consumers and payment accounts with basic services.
Reference number	a numerical designation generated during the processing of a payment order in the Bank, which enables the payer/payee to identify the payment transaction.
Resident	a person defined in accordance with the law governing the prevention of money laundering and terrorist financing.
Self-service device for depositing funds	an electronic device intended for depositing banknotes and/or coins into transaction accounts of legal entities, entrepreneurs and other persons performing a registered activity, where transactions are carried out using a card and identification of its user in a manner provided by the device itself.
SEPA	the Single Euro Payments Area is an area in which payment service users can make and receive payments in euros under the same basic conditions, rights and obligations, regardless of location.
SEPA payments[1]	all types of credit transfers and direct debits executed within the Single Euro Payments Area through SEPA payment schemes.
SEPA payment schemes	a set of rules, practices, standards and guidelines agreed for the execution of payment transactions via credit transfers and direct debits in euros, where one of the payment service providers is located in Montenegro and the other within SEPA, which is separate from the infrastructure or payment system supporting the functioning of that payment scheme.
SEPA credit transfer	an international payment service whereby the Bank, as the payment service provider with which the payer’s transaction account is maintained, based on the instruction given by the payer, credits the payee’s transaction account within SEPA for the amount of funds transferred by a payment transaction or a series of payment transactions debited from the payer’s transaction account, in accordance with the rules of the applicable SEPA payment scheme prescribed by the European Payments Council (EPC).
Transaction account	a type of payment account opened and maintained by banks and other credit institutions providing payment services, a branch of a credit institution from a third country with its seat in Montenegro and the Central Bank, in the name of a payment service user for the execution of payment transactions and for other purposes. It is used for the execution of payment transactions as well as for other purposes related to payment services and is opened for consumers and non-consumers / natural and legal persons / residents and non-residents.
Standing order	a payment service for the execution of a credit transfer based on a contractual relationship between the payer and their payment service provider, whereby the payer authorises the payment service provider to issue a payment order debiting their transaction account and execute payment in favour of a designated payee.
Third country	until Montenegro’s accession to the European Union, any foreign country, and after accession, a country that is not a Member State.
Durable medium	a payment service for the execution of a credit transfer based on a contractual relationship between the payer and their payment service provider, whereby the payer authorises the payment service provider to issue a payment order debiting their transaction account and execute payment in favour of a designated payee.
Cut-off Time Schedule for the receipt and execution of payment transactions	an act of the Bank defining deadlines, methods and conditions for the execution of payment transactions.
Payment services agreement	an agreement whereby the payment service provider undertakes to provide certain payment services or a payment service to the payment service user, and the payment service user undertakes to pay a fee for such services.
Payment initiation service	a payment service of initiating a payment order at the request of the payment service user relating to a payment account held with another payment service provider.
Account information service	a payment service provided via online connection, which provides consolidated information on one or more payment accounts that the payment service user holds with another payment service provider or with several payment service providers.
Account holder	a payment service user who has signed a Framework Agreement with the Bank and has an open transaction account with the Bank.
Representative	a person who is the legal representative of the Payment Service User based on the statute, founding act or other act.
Law	the applicable Law on Payment Transactions in Montenegro, including its amendments and bylaws.
3-D Secure Standard	a standard for verifying the identity of the card user when making purchases on the internet, developed by Mastercard Worldwide (Mastercard SecureCode) and Visa International (Verified by Visa), which provides the highest level of security for payments for goods and services with payment cards on online sales points, and which is accepted by the Bank.
In relation to the interpretation of the meaning of certain words from this section of the General Terms and Conditions, it is irrelevant whether the singular or plural form is used, the grammatical gender, or uppercase or lowercase letters. The headings of individual sections are for orientation purposes only and shall not serve as a basis for interpretation of the General Terms and Conditions.

IV TYPES OF PAYMENT SERVICES

These General Terms and Conditions define the provision of payment services, as follows:

· services enabling cash deposits into a transaction account, as well as all activities required for maintaining a transaction account;

· services enabling cash withdrawals from a transaction account, as well as all activities required for maintaining a transaction account;

· execution of payment transactions, including the transfer of funds to the transaction account of a payment service user with their payment service provider or with another payment service provider, as follows:

– execution of direct debits, including one-off direct debits,

– execution of payment transactions through payment cards or similar instruments,

– execution of credit transfers, including standing orders;

· execution of payment transactions where the funds are covered by a credit granted to the Payment Service User:

– execution of direct debits, including one-off direct debits,

– execution of payment transactions through payment cards or similar instruments,

– execution of credit transfers, including standing orders;

· issuing and/or acquiring of payment transactions;

· execution of money remittances;

· payment initiation services;

· account information services;

· SEPA credit transfers.

Payment transactions executed by the Bank are divided into: 1) national; 2) international; and 3) cross-border payment transactions.[2]

The Bank may conclude a payment services agreement with a Payment Service User as: 1) a one-off payment transaction and/or 2) a Framework Agreement. The agreement (order) on a one-off payment transaction regulates the execution of a single payment transaction not covered by a Framework Agreement. The Framework Agreement regulates the execution of future individual payment transactions, as well as the conditions for opening, maintaining and closing a transaction account. Under the Framework Agreement, in addition to the aforementioned services, the Payment Service User may also be provided with electronic banking services, HB Info service, standing orders/direct debits, payment cards and other payment services of the Bank.

Based on the submitted documentation for opening a transaction account and the signed Framework Agreement, the Bank opens the transaction account(s) and issues payment instruments to the Payment Service User.

The Bank performs the agreed payment services in accordance with the applicable regulations of the Central Bank of Montenegro regarding execution deadlines and the Cut-off Time Schedule for the receipt and execution of payment transactions of the Bank, which forms an integral part of these General Terms and Conditions.

IV-1 OPENING, MAINTENANCE AND CLOSURE OF A TRANSACTION ACCOUNT

1. Payment of the founding capital

Prior to the opening of a transaction account, the founders of a legal entity shall deposit funds for the founding capital. The deposit may be made at any branch of the Bank into an account opened for that purpose, on the basis of which the Bank issues a confirmation to the founders of the legal entity regarding the payment of the founding capital, for the purposes of registering the legal entity with the competent authority. The Bank charges a prescribed fee for issuing such confirmations.

Upon completion of the registration with the competent authorities of Montenegro, the funds of the founding capital shall be transferred to the newly opened transaction account of that legal entity.

If the registration procedure is terminated, the founding capital shall be returned to the payer upon their request, provided that the payer returns to the Bank the original confirmations of the payment of the founding capital.

2. Payment of funds for the increase of the founding capital

Payments shall be executed in favour of the transaction account of the Payment Service User with a reference number, a specified payment description, and the account number and name of the legal entity for which the increase of the founding capital is being made.

Upon execution of the payment, the Bank shall issue a confirmation to the Payment Service User on the amount of the payment made for the increase of the founding capital, i.e. the performed recapitalisation, based on a written request of the Payment Service User.

For the issuance of such confirmations, the Payment Service User is obliged to submit to the Bank a valid decision on the increase of the founding capital/recapitalisation, and the Bank shall charge the prescribed fee.

3. Opening of a transaction account

The Bank opens a transaction account for a Payment Service User based on a concluded Framework Agreement. The Framework Agreement is concluded based on a written request of the Payment Service User for opening a transaction account, accompanied by the documentation prescribed by these General Terms and Conditions. The request for opening a transaction account is submitted on the Bank’s prescribed form or in the form of a written request containing all elements prescribed by applicable laws.

The Payment Service User is responsible for the accuracy and completeness of all data stated in the request for opening a transaction account.

Based on the request for opening a transaction account and the submitted documentation, the Bank may conclude a Framework Agreement and open a transaction account for domestic and international payment transactions, i.e. for the execution of national and/or international/cross-border payment transactions, as well as a special purpose account. The Bank may open these types of accounts for residents and non-residents, consumers and non-consumers. Transaction accounts opened for national transactions are opened in BBAN format – Basic Bank Account Number, consisting of 18 numeric characters, while transaction accounts opened for international/cross-border transactions are opened in IBAN format (International Bank Account Number), consisting of 2 alphabetical characters and 20 numeric characters.

During the procedure of opening a transaction account, the Bank is obliged to establish the identity of the Payment Service User and carry out other procedures in accordance with the applicable legal regulations governing the prevention of money laundering and terrorist financing and the implementation of FATCA in Montenegro.

The Bank may require the Payment Service User to present additional data or documentation if prescribed by law or other regulations, as well as in cases where it considers the submission of additional documentation necessary for deciding on the request.

The Bank reserves the right, at its own discretion and without providing specific explanation, to reject a request for opening a transaction account, even if the Payment Service User meets the conditions specified in this section. At the request of the Payment Service User, the Bank shall return the original documentation submitted for the purpose of opening the account and retain copies thereof.

The Payment Service User is responsible for the accuracy and completeness of all data on the basis of which the Bank has opened and maintains the transaction account. The Payment Service User shall compensate the Bank for any loss or expense arising from inaccurate and/or incomplete data submitted by the Payment Service User. The Payment Service User is obliged to notify the Bank in writing of any change in data recorded in the account register immediately, and no later than within 3 days from the date of occurrence of such change, and to submit the relevant documentation to the Bank. In the event that the Payment Service User fails/delays to notify the Bank of such changes, the Payment Service User shall bear responsibility for any potential damage related to the maintenance of their transaction account. Upon request of the Bank, the Payment Service User is obliged to provide additional data regarding persons authorised to represent and dispose of funds.

Transaction accounts of Clients are subject to supervision by competent authorities in accordance with applicable legal regulations.

3.1 Opening of a transaction account for a non-consumer (legal entity, entrepreneur and other person performing an activity in accordance with regulations) – resident

The documentation that the Payment Service User is required to submit together with a duly completed Request for opening a transaction account is:

decision on registration – entry into the Central Register of Business Entities (CRPS), or an act of registration with another competent authority, if such registration is prescribed;
act of the competent authority on establishment, if registration is not prescribed;
excerpt from the law, if the entity is established directly on the basis of law;
notification of the competent authority on classification by activities, submitted if such data is not an integral part of the decision, act or excerpt referred to in items 1, 2 and 3 of this paragraph;
act on completed registration with the competent tax authority containing the tax identification number of the applicant, if such registration is prescribed, submitted if such data is not an integral part of the decision, act or excerpt referred to in items 1, 2 and 3 of this paragraph;
completed specimen signature card of persons authorised to sign payment orders;
act on the appointment of the person authorised to represent the applicant, if such person is not specified in the registration act, law or other regulation on the basis of which the entity is established;
certified signature of the authorised person of the applicant, which is not mandatory if such person is present and signs the request upon submission;
other documentation required by the Bank in accordance with its business policy and other internal acts.

The Payment Service User is obliged to present the documentation to the Bank in original for inspection or as a certified copy, not older than 3 (three) months from the date of issuance.

In accordance with the applicable regulations governing the prevention of money laundering and terrorist financing, as well as the implementation of FATCA, in addition to the above documentation, the Payment Service User, when opening a transaction account with the Bank, shall also complete the following forms:

Questionnaire for politically exposed persons
data on beneficial owners
documentation for the identification of U.S. persons, where applicable

In the case of opening a transaction account exempt from enforcement, in accordance with applicable laws, the Payment Service User is obliged, in addition to the documentation referred to in paragraphs 1 and 3 of this section of the General Terms and Conditions, to submit documentation proving that such transaction account is exempt from enforcement.

The Request for opening a transaction account and the documentation submitted with the Request do not need to be certified with a stamp, except where this is mandatory in accordance with the law, other regulations or general acts.

When the Bank determines, based on the documentation submitted in the preceding paragraphs of this section of the General Terms and Conditions, that it is complete and that the prescribed conditions for opening a transaction account have been met, it shall conclude a Framework Agreement with the Payment Service User.

3.2 Opening of a transaction account for a consumer (retail client) – resident/non-resident with HB Info

A transaction account may be opened by a legally capable retail client who receives inflows to their account on the basis of regular income/contributions, royalties, additional work or other income in accordance with applicable regulations and who accepts the General Terms and Conditions.

A Basic account may be opened and used only if the legal conditions for contracting a Basic account are fulfilled and under the conditions set out in these General Terms and Conditions.

Opening of a transaction account for a consumer is not possible without activation of the HB Info service, for a mobile phone number registered with the Bank.

For the HB Info service, the Bank does not charge a fee; however, the Payment Service User’s mobile account is charged for the cost of sending SMS messages to number 14575, in accordance with the tariffs of the mobile operator whose network the phone number belongs to.

The Bank opens a transaction account for a consumer based on a valid identification document and a completed request for opening a transaction account, as well as other documentation required by the Bank in accordance with applicable FATCA regulations, its business policy and other internal acts. The Payment Service User may, when opening a transaction account or at a later stage, authorise another person to dispose of funds in that account. Such authorised person disposes of the funds in the transaction account in accordance with the Bank’s instructions and the power of attorney granted by the Payment Service User. The Payment Service User shall be fully liable for the disposal of funds from their transaction account by the authorised person. The power of attorney shall remain valid until revoked in writing by the Payment Service User, closure of the transaction account, death of the Payment Service User or death of the authorised person.

The Payment Service User may authorise another person to conclude a Framework Agreement with the Bank on their behalf and for their account, in which case the Bank shall establish the identity of the authorised person based on a valid identification document and the original authorisation for concluding the Framework Agreement certified by a notary or competent authority, which must not be older than 3 (three) months.

The Bank may open a transaction account upon the request of a minor, for the purpose of receiving funds based on scholarships, student competition awards, student work through services/associations, etc. In this case, the Framework Agreement is signed on behalf and for the account of the minor by the legal representative. In such case, the Bank establishes the identity of the legal representative based on a valid identification document and by inspecting the original birth certificate proving parenthood. If the minor does not have a legal representative, the transaction account is opened by a guardian who, in addition to a valid identification document, must present to the Bank the original final decision of the competent social welfare authority on guardianship.

Exceptionally to paragraph 7 of item 3.2, the Bank may open a transaction account upon the request of a minor with legal capacity, with mandatory identification and submission of documents proving legal capacity status, proof of marriage for persons older than 16 years, proof of parenthood for persons older than 15 years, employment contract or other documents, in which cases the Framework Agreement may be signed between the Bank and the minor with legal capacity.

The Bank may issue a payment card, with or without a PIN, to a person to whom it has approved the opening of a transaction account. A payment card is a document by which the Payment Service User or the card user proves their identity, together with an identification document, in transactions related to the transaction account. If the Bank has approved the issuance of a payment card with a PIN, the card users, in addition to signing the Framework Agreement, also accept the terms related to the use of payment cards, where applicable.

When the Bank determines, based on the documentation submitted in the preceding paragraphs of this section of the General Terms and Conditions, that it is complete and that the prescribed conditions for opening a transaction account have been fulfilled, it shall conclude a Framework Agreement with the Payment Service User and activate the HB Info service.

Existing Payment Service Users who have not submitted a request for activation of the HB Info service may request its activation.

The Bank may, at its own discretion, refuse to open an account for any Payment Service User; however, a request for opening a Basic account must be rejected without delay, and no later than within 10 (ten) business days from the date of receipt of a duly completed request.

In the event of refusal of a consumer’s request to open a Basic account, the consumer must be provided, free of charge and in paper form, with a notification of refusal and the reasons for refusal, unless disclosure of such reasons would be contrary to regulations (objectives of national security, public interest or regulations on the prevention of money laundering).

3.3 Switching service in accordance with applicable regulations on consumer payment accounts

In accordance with the Law on the comparability of fees related to consumer payment accounts, the switching of consumer payment accounts and payment accounts with basic services, the Bank provides the Payment Service User – account holder with a switching service for certain services related to payment accounts (transaction accounts) contracted with another bank – hereinafter: Switching service, based on a submitted request and written authorisation of the consumer, the content of which is defined in a form provided by the Bank.

The Switching service is available to any consumer, provided that the payment accounts are in the same currency and are opened and maintained with banks in the territory of Montenegro.

The Switching service consists of the transfer to the Bank of:

information on all or selected standing orders for credit transfers, recurring direct debits and recurring incoming credit transfers executed on the payment account, and/or
available funds (part or the entire positive balance) from a transaction account opened with another bank to a transaction account with the Bank, with or without closing the transaction account with the other bank;

The Bank also provides the switching service for services related to a transaction account contracted with the Bank to another bank. The Payment Service User – consumer, who is the holder of a transaction account with the Bank, is obliged to settle, without delay, all obligations related to the account, as well as costs incurred from the use of the payment card associated with that account and other services contracted with the account, including not yet due financial obligations.

All obligations related to the transaction account subject to switching must be settled no later than the date specified in the written authorisation as the date of closure of that account. If the obligations related to the transaction account are not settled on the date specified in the written authorisation as the account closure date, the account will not be closed based on that authorisation.

Upon closure of the account that was subject to switching, the execution of services shall cease, i.e. all services and products of the Bank linked to the closed transaction account shall be terminated.

Detailed information on the Switching service is available at all branches of the Bank and on the Bank’s website www.hipotekarnabanka.com and forms an integral part of these General Terms and Conditions.

3.4 Opening of a transaction account for a non-consumer (corporate client) – non-resident

The documentation that the Payment Service User is required to submit together with a duly completed Request for opening a transaction account is:

extract from the register in which the non-resident (corporate client) is registered in the country where it has its registered seat or, if established in a country where such registration is not carried out – another valid document on establishment in accordance with the regulations of the country of seat, based on which the legal form of the non-resident and the date of its establishment can be determined;
certified signature of the authorised person of the applicant, which is not mandatory if such person is present and signs the request upon submission;
completed specimen signature card of persons authorised to sign payment orders, containing the prescribed data and signed by the authorised person from the registration decision of the non-resident corporate client in the country of seat and the person to whom the authorised person has transferred the signing authority, or from another valid document on establishment;
other documentation required by the Bank in accordance with applicable FATCA regulations, its business policy and other internal acts.

The documentation referred to in the previous paragraph of this section of the General Terms and Conditions shall be submitted as a copy certified by the competent authority and accompanied by a certified translation into Montenegrin, not older than 3 (three) months. After the conclusion of the Framework Agreement, the Payment Service User is obliged to submit this documentation to the Bank once a year; otherwise, the Bank shall not execute payment transactions for the Payment Service User until such documentation is provided. In case of failure to submit the required documentation, the Bank shall block the use of funds in the transaction account until the required documentation is submitted or, upon written request of the Payment Service User, transfer the funds in accordance with its instructions and close the transaction account. Exceptionally, in accordance with applicable regulations governing the prevention of money laundering and terrorist financing, the Bank may require the Payment Service User to submit the above data more frequently than the legally prescribed period of 1 (one) year, and the Payment Service User is obliged to comply within the specified deadline.

Foreign diplomatic and consular missions in Montenegro, when opening a transaction account, in addition to a duly completed request for opening a transaction account, shall submit:

certificate of registration issued by the state administration authority competent for foreign affairs;
notification of the competent authority in Montenegro on classification of activities;
act on completed registration with the competent tax authority in Montenegro containing the tax identification number;
certified signature of the authorised person of the applicant, which is not mandatory if such person is present and signs the request upon submission;
specimen signature card of persons authorised to sign payment orders on that account, containing the prescribed data;
as well as other documentation that may be required by the Bank in accordance with its internal procedures and policies.

In accordance with the applicable regulations governing the prevention of money laundering and terrorist financing, the Payment Service User, when opening a transaction account with the Bank, shall also complete the following forms:

Questionnaire for politically exposed persons
data on beneficial owners

4. Maintenance of a transaction account

Funds in transaction accounts are held as demand deposits, and the Bank participates in the deposit protection system with the Deposit Protection Fund in accordance with applicable laws.

The Bank maintains transaction accounts in the currency in official use in Montenegro, as well as in currencies from the Bank’s exchange rate list, depending on the type of transaction account and in accordance with the provisions of the Framework Agreement concluded with the Payment Service User.

The Bank records executed payment transactions of the Payment Service User at the level of their individual transaction account and is obliged to update and record data on a daily basis and ensure their accuracy.

The Payment Service User – retail client may authorise, in writing, one or more persons, in a manner prescribed by the Bank, or in accordance with a special power of attorney certified by a notary, consular office or other competent authority of a foreign country, provided that such document is duly certified for use abroad and accompanied by a translation into Montenegrin by a certified court interpreter. In addition to the Payment Service User and the authorised person, payment transactions may also be initiated by legal representatives or guardians of the Payment Service User.

The Payment Service User – corporate client appoints authorised persons for the disposal of funds in the account and shall timely notify the Bank of all changes related thereto. The Payment Service User is obliged to inform the authorised persons of their rights and obligations in exercising the granted authorisations for disposal of funds in the transaction account. The Payment Service User shall be liable to the Bank for any damage arising as a result of exceeding the authorisations by its authorised persons. The authorisation for disposal of funds in the transaction account is granted, amended and revoked by the Payment Service User exclusively in written form, on the Bank’s Specimen Signature Card (“SSC”).

The Bank shall not bear any responsibility for any damage resulting from the Payment Service User’s failure to timely notify the Bank as referred to in the previous paragraph.

5. Available balance of the transaction account and the method of disposal of funds

Available funds/balance shall mean the balance of funds in the transaction account from the previous day, increased by daily inflows and funds from an approved framework credit facility, and reduced by daily outflows and amounts reserved for card transactions, up to the moment of determining the balance.

The Payment Service User and the Bank agree that the Bank shall receive deposits of funds into the transaction account and shall perform withdrawals and transfers of funds based on the Payment Service User’s orders within the available funds in the transaction account, all in accordance with the Cut-off Time Schedule for the receipt and execution of payment transactions.

The Bank may grant the Payment Service User a framework credit facility – an authorised overdraft on the account (“overdraft on the transaction account”), in accordance with the applicable internal acts of the Bank.

The Payment Service User is obliged to keep their own records of transactions on the transaction account with the Bank and to ensure that sufficient funds are available in the account for the execution of submitted payment orders.

Payment orders submitted by the Payment Service User are delivered to the Bank using the Bank’s payment forms in paper form, via electronic banking services, via payment cards, via mobile phones supporting Apple Pay or Google Pay, and based on the contractual relationship between the Payment Service User and the Bank.

Any negative balance on the transaction account not covered by a credit facility shall be considered an unauthorised overdraft. If an unauthorised overdraft occurs, the Bank shall take measures against the Payment Service User in accordance with the contractual provisions and applicable internal acts. The Payment Service User is obliged to settle the debt no later than within 8 (eight) days from the date on which the Bank has sent a reminder by regular mail or a termination notice by registered mail with return receipt to the address of the Payment Service User specified in the agreement. If the Payment Service User fails to settle the debt within the specified period, the Bank shall undertake further measures for debt collection.

6. Bank’s authorisations to dispose of funds in the Client’s transaction account

The Bank disposes of funds in the transaction account of the Payment Service User on the basis of contractual authorisations granted to the Bank.

In the enforcement procedure on the funds of the Payment Service User as an enforcement debtor, the Bank acts as the executor of orders issued by the competent authority in accordance with the law governing enforcement and security, and in doing so neither establishes nor verifies the relationship between the Payment Service User and the person designated in the order as the creditor. The Bank shall not be liable to the Payment Service User for any damage that may arise as a result of executing an unlawful or irregular order of a competent authority.

In accordance with applicable laws governing the enforcement of collection on monetary funds, the Bank executes payment orders from funds in transaction accounts within the available balance in those accounts.

By signing the Framework Agreement, the Payment Service User agrees that the Bank may collect all due obligations of the Payment Service User towards the Bank, on any legal basis, without submitting a payment order, by direct debit of all their transaction accounts. If the Bank’s claims are collected in EUR and charged against funds held in a currency other than EUR, the Bank shall perform conversion according to the exchange rate list published by the Bank on the due date of the obligation, i.e. on the date of transfer of such funds.

Such a payment transaction shall not be considered an unauthorised payment transaction.

By accepting the General Terms and Conditions, the Payment Service User authorises the Bank, without prior consent of the Payment Service User, to correct obvious errors of the Bank arising in operations, due to which the balance in the transaction account would deviate from the actually issued payment orders credited to or debited from that account. The Bank shall inform the Payment Service User of the error and of the executed debit or credit through the account statement, and the Payment Service User may subsequently verify this at a Bank branch.

The Bank is authorised to restrict the disposal of funds in the account if it assesses that there is suspicion of potential fraud or misuse by the account holder, representative, authorised person or a third party.

7. Blocking of a transaction account

The Bank may block a transaction account, i.e. impose a restriction on the disposal of funds in the transaction account in cases prescribed by law (in relation to enforcement procedures, decisions of competent authorities of Montenegro in accordance with regulations on the prevention of money laundering and terrorist financing, the introduction of international restrictive measures, etc.).

The Bank may, by means of a block, temporarily or permanently restrict or disable the use of certain or all functionalities of the transaction account.

The Bank shall also block transaction accounts upon becoming aware of the death of the Payment Service User. After the death of the Payment Service User, the funds in the transaction account shall be distributed based on a final court decision on inheritance, or other legally recognised grounds for succession, and the transaction account of the Payment Service User shall be closed.

The Bank shall block the transaction account based on an order received from an authorised institution and shall act further in accordance with applicable laws. During the period of the block/restriction, the Payment Service User and authorised persons may not dispose of the funds in the transaction account.

8. Closure of a transaction account

The Bank shall close the transaction accounts of a Payment Service User that has ceased to exist as a legal entity, in accordance with the law or regulation, as follows:

when it is not registered in the CRPS or another public register under any designation, although registration is required, or it is recorded under the designation “deleted”, “liquidated” or any other designation indicating that it has ceased to exist as a legal entity in accordance with regulations;

If no legal successor or other person in whose favour the transaction is to be executed is determined by regulation or legal act for the entities referred to in paragraph 1 of this section, the Bank shall transfer the funds from their closed transaction accounts to a Bank account designated for unused funds.

The Bank shall close all transaction accounts of a corporate client and entrepreneur – resident, over whom bankruptcy or liquidation proceedings have been initiated, based on the request of the bankruptcy/liquidation administrator, and shall open for such entity a transaction account in bankruptcy or liquidation. The prescribed documentation shall be submitted together with the request of the bankruptcy/liquidation administrator.

In the case of status changes of a Payment Service User of the Bank – corporate client or entrepreneur – resident, the Bank shall close the accounts based on the request of such entity or its legal successor, accompanied by the prescribed documentation, and shall transfer the funds from the closed accounts to the transaction account specified in the request.

An exception to the rule that the Bank may not close transaction accounts of an entity subject to a block under item 7 of this Section (III-1) of the General Terms and Conditions applies to the closure of blocked transaction accounts of Payment Service Users – corporate clients/entrepreneurs – residents, when such entities have ceased to exist as legal entities. When the Bank receives data from the Central Bank on Payment Service Users – corporate clients/entrepreneurs – residents that have been deleted from the CRPS or another public register, it is obliged to close such accounts without delay.

The Bank shall also close transaction accounts without a request from the Payment Service User if there have been no transactions on those accounts for a period of 5 (five) years and if the balance on such accounts is zero.

IV-2 PAYMENT SERVICES

1. Payment Order Details

The Bank shall receive and execute the following types of payment orders: cash deposit orders, cash withdrawal orders, and transfer orders. The form and structure of payment orders are defined by law.

A cash deposit order is a payment order requesting the execution of a transaction involving the deposit of cash. A cash withdrawal order is a payment order requesting the execution of a transaction involving the withdrawal of cash. A transfer order is a payment order requesting the execution of a transaction involving the transfer of funds.The payment order must be properly completed, legible, and signed by the payment service user. The Bank shall not be liable for any damage that may arise as a result of delays in processing a payment order if such delay is caused by the need for additional contact with the payment service user for the purpose of completing and/or correcting the order.

The content of payment orders used in domestic and international payment transactions differs in terms of required documentation, as follows:

Domestic Payments

International Payment Transactions

A duly completed payment order, in accordance with the provisions of the Law.

A duly completed order/request for an international payment, containing all required details, including: payer information, payer’s account number, payment amount and currency, beneficiary details with payment instructions, purpose of payment, payment options (cost allocation, value date), and the basis for payment (invoice/pro forma invoice/contract/decision, etc.).

For SEPA payment orders, the payment currency is EUR and the cost option is shared (SHA).

2. Signing of Payment Orders / Authorization

All types of payment orders submitted to the Bank must be signed by authorized persons as registered on the KDP or other documentation deposited with the Bank, and stamped with the registered seal (for corporate clients), if applicable.

Payment orders received by the Bank via electronic banking services are signed and authorized in accordance with the terms defined in the service activation request and the user guide governing the electronic submission of payment orders.

When making payments or cash withdrawals at EFTPOS terminals using a payment card, the cardholder is identified by signature or PIN; for deposits/withdrawals/transfers at ATMs, identification is performed via PIN. A correctly entered and verified PIN serves as the sole and unequivocal confirmation of a transaction performed at an ATM or EFTPOS terminal. The cardholder is obliged to keep their PIN confidential and must not disclose it to anyone or record it on the card itself. Any risk of PIN misuse shall be borne by the payment service user. Confirmation of a transaction performed at an EFTPOS terminal without a PIN module is the cardholder’s signature. Confirmation of a transaction performed on an electronic device at a point of sale is the confirmation received by the payment service user through one of the agreed channels for receiving transaction confirmations at that location.

When paying for goods and services online, the cardholder confirms their identity using the following details: card number, card expiry date, and optionally the security code printed on the back of the card (CVV/CVC). When making payments online, via telephone orders, toll payments, and similar, the cardholder assumes full responsibility for any potential misuse if such misuse results from negligence or gross carelessness, or from use of the card contrary to the general terms and conditions.

When operating a transaction account, a payment service user – retail client is required to identify themselves using a payment/bank card and a valid identification document. When signing documents in relation to a transaction account, the signature of the payment service user – retail client must match the signature deposited on the application form or on the bank/payment card.

3. Acceptance of Payment Orders

The Bank receives payment orders in accordance with the published and valid Schedule for the Receipt and Execution of Payment Transactions, with which the payment service user is familiar through the Bank’s branches and website.

The Bank accepts advance non-cash payment orders exclusively via electronic banking services, in accordance with the terms defined in the service activation request and the user guide governing the electronic submission of payment orders.

Interbank non-cash payment orders submitted in paper form are accepted by the Bank in accordance with the Schedule for the Receipt and Execution of Payment Transactions.

The payment service user and their authorized representatives may authorize the Bank to execute regular or occasional payments from the user’s transaction account, i.e., via standing orders/direct debits. The Bank shall execute standing orders/direct debits in accordance with the conditions defined by the payment service user. If the scheduled payment date falls on a non-business day, the payment will be executed on the next business day.

The Bank executes standing orders/direct debits only if sufficient funds are available in the transaction account to cover the full payment amount and the Bank’s service fee. If a standing order/direct debit cannot be executed on the scheduled date due to insufficient funds, the Bank will attempt to process the payment subsequently for a defined number of days, in accordance with the agreement with the beneficiary and the applicable Schedule for the Receipt and Execution of Payment Transactions.

Upon the expiry of the calendar month, the Bank will notify the payment service user of the inability to execute the standing order/direct debit and its rejection.

4. Accuracy of Payment Orders

The Bank shall execute a payment from the transaction account of the payment service user only on the basis of a valid payment order submitted by the payment service user. A valid payment order is considered to be an order that meets the following conditions:

it contains the minimum required elements of a payment order in accordance with the Law and these General Terms and Conditions;
sufficient funds are available in the transaction account to cover the full amount of the payment in the payment currency, as well as the applicable transaction fee;
the order, in its entirety, complies with applicable legal regulations and the Bank’s internal policies, and there are no legal obstacles to its execution;
appropriate consent for the payment has been provided in the manner defined by these General Terms and Conditions.

5. Rejection of a Payment Order

The Bank shall not execute a payment order that has been corrected, crossed out, erased, or otherwise altered, or for which there are insufficient funds in the transaction account. A payment order for which there are no sufficient funds available on the value date, or only partial funds (insufficient to cover the full amount), shall not be executed by the Bank.

If the Bank refuses to execute a payment order or to initiate a payment transaction, it shall inform the payment service user of the refusal, the reasons for the refusal, and the procedure for correcting any errors that led to the refusal. A rejected payment order shall be deemed not to have been received.

The Bank reserves the right to refuse a payment order even if it meets all previously stated conditions, if its execution would be contrary to applicable legal regulations related to international restrictive measures, the prevention of money laundering and terrorist financing, or the Bank’s internal policies.

Irrevocability of a Payment Order

The payment service user may not revoke a payment order once it has been received and processed by the Bank in its system and assigned a reference number, i.e., once the Bank has received the user’s consent.

If a payment transaction is initiated by a payment initiation service provider or by or through the payee, the payer may not revoke the payment order after giving consent to the payment initiation service provider to initiate the transaction or after giving consent to the payee for the execution of the payment transaction.

Revocation of a standing order must be submitted to the Bank for the following month, at least one month prior to the scheduled payment date. In the case of a direct debit, where an agreed debit date applies, the payment service user may revoke the payment order no later than the end of the business day preceding the agreed debit date, without prejudice to the payer’s right to a refund.

The Bank is obliged to execute the full amount of the payment transaction without deduction of fees, unless otherwise agreed between the payment service user and the Bank.

7. Authorization of Payment Transactions

A payment transaction shall be considered authorized only if the payment service user has given consent for its execution. Consent may be given by performing one or more actions simultaneously. For the avoidance of doubt, consent shall also be deemed to have been given subsequently if, after the execution of a payment transaction, the payer collects documents (receipts, certified payment orders, etc.) related to that transaction.

The payment service user provides consent for the execution of a payment transaction by signing and collecting a copy of the payment order bearing a processing reference at the Bank’s counters, by accepting the reference number of a payment order submitted via the Bank’s electronic banking services, or by signing at EFTPOS terminals.

The payment service user gives consent depending on the channel used for submitting the payment order and the payment instrument, as follows:

a) At the Bank’s branches: by submitting a duly completed payment order, signing and collecting a copy of the order with a processing reference at the counter, and providing the required amount of cash for execution;

b) By card: by presenting the card, inserting it into an ATM and entering the PIN (with the option of using the Bank’s DCC service for foreign cards), inserting the card into other self-service devices for deposits/transfers, inserting the card into an EFTPOS terminal and entering the PIN or signing the receipt if the terminal has no PIN module, tapping the card on a contactless reader and entering a PIN where required, or using the card on an NFC-enabled device; for online (e-commerce) transactions, by entering the card number, expiry date, CVV/CVC code, and OTP if required (3-D Secure), as well as for MOTO/CNP transactions by entering the CVV/CVC code;

c) Via online banking services;

d) At the payee’s premises: by signing the payment order;

e) Via iOS mobile devices (Apple Pay): by tapping on a contactless reader and authenticating using device security (PIN, fingerprint, or facial recognition);

f) At ATMs supporting contactless withdrawals: via Apple devices with registered Mastercard cards of Hipotekarna banka;

g) Via Apple devices on online sales platforms and applications supporting Apple Pay;

h) Via Android mobile devices (Google Pay): using the “Google Wallet” app with tokenized Mastercard cards, by tapping on a contactless reader and authenticating using device security;

i) At ATMs supporting contactless withdrawals: via Android devices with Google Wallet;

j) Via Android devices on online sales platforms and applications supporting Google Pay.

Where applicable laws require additional documents or information for the execution of a payment order, the Bank shall execute the order only if such documents and data are duly provided. In such cases, the Bank shall not be liable for any extension of execution deadlines.

The Bank shall not be liable for non-execution of a payment order if, in accordance with regulations on anti-money laundering, counter-terrorist financing, international restrictive measures, embargo measures, or FATCA requirements, it is obliged to apply such measures.

Consent may be revoked by withdrawing the action(s) by which it was given, until the payment transaction has been executed. Irrevocability occurs once the Bank has received the payment order or all necessary data for its execution.

The payment service user acknowledges that a PIN entered and verified at an ATM or EFTPOS terminal, a signature on a receipt from an EFTPOS terminal without a PIN module, or, for online (e-commerce) or MOTO/CNP transactions, the entry of CVV/CVC and OTP, constitutes the sole and unequivocal confirmation of the transaction and the user’s identity.

At certain points of sale where, due to transaction speed or technological conditions, transactions are executed without signature or PIN (e.g., toll payments, contactless payments), the payment service user gives consent by simply using the card or a mobile device supporting Apple Pay or Google Pay.

The payment service user accepts that their username, PIN, and OTP entered in the electronic banking application constitute the sole and unequivocal confirmation of access.

As a payment service provider and issuer of payment instruments, the Bank is required, when initiating electronic payment transactions and enabling remote access to payment accounts, to apply strong customer authentication, except in cases where applicable regulations allow exemptions (based on transaction amount, number or cumulative value of transactions, payee, or other regulatory criteria). Where exemptions apply, the absence of strong customer authentication does not in itself mean that the transaction was not duly authorized.

The authentication and authorization system consists of devices, applications, or methods used for verifying identity and authorizing access and use of online banking services, as further described in the relevant user guides.

8. Proof of Authentication and Execution of Payment Transactions

If the payment service user disputes having authorized an executed payment transaction or claims that the transaction was not properly executed, the Bank shall prove that the authentication of the payment transaction was carried out, that the transaction was properly recorded and posted, and that its execution was not affected by a technical malfunction or any other deficiency.

If the payment service user disputes having authorized an executed payment transaction, the mere use of the payment instrument recorded by the Bank shall not in itself be sufficient proof that the payer authorized the transaction, or that they acted with fraudulent intent or intentionally or with gross negligence failed to fulfill one or more obligations. In such cases, the Bank is required to prove fraud or gross negligence on the part of the payment service user.

9. Interbank Payment Execution

Execution timeframes for payment transactions between payment service providers are defined by the Bank’s Schedule for the Receipt and Execution of Payment Transactions and are calculated from the moment the payment order is received.

10. Cross-Border and International Payments

For payment orders submitted to the Bank, the payment service user shall provide supporting documentation evidencing the purpose and obligation of the payment. The Bank shall execute received payment orders exclusively within the available balance on the transaction account. The total amount of the order includes both the payment amount and all applicable fees payable to the Bank for executing the order. If the available balance is insufficient to cover the total amount, the Bank shall not execute the order. In such cases, the Bank shall bear no liability for any damage resulting from non-execution. The Bank executes orders in accordance with the Schedule for the Receipt and Execution of Payment Transactions, with which the payment service user is familiar prior to concluding the Framework Agreement.

In processing payment orders, the Bank applies its daily exchange rate list, unless otherwise agreed with the payment service user. When buying or selling foreign currency for the purpose of international payments or crediting a transaction account, the Bank applies the applicable buying/selling exchange rate from its standard exchange rate list on the transaction date, unless otherwise agreed.

Valid payment orders are executed via SWIFT in accordance with the Schedule for the Receipt and Execution of Payment Transactions.

A valid payment order is considered to be one that includes, at a minimum: details of the payment service user, the account number from which the payment is made, the beneficiary (full name, address, IBAN, payment instructions), purpose of payment, amount and currency, payment options (urgency, cost allocation, etc.), and is accompanied by appropriate supporting documentation (contract, pro forma invoice/invoice, decision, statement, etc.), signed by authorized persons of the payment service user. In addition, sufficient funds must be available in the payment currency, as well as funds to cover applicable fees on the transaction account. The payment service user authorizes the Bank to debit fees for payment services, intermediary bank charges, and fees under the “OUR” option from available funds in their transaction accounts without separate consent. The Bank charges such fees immediately, i.e., prior to execution of the transaction.

The payment service user is responsible for the accuracy of all data provided in the payment order and for the authenticity of the underlying transaction and documentation.

For electronic cross-border and international payments via electronic banking services, the payment service user is responsible for the accuracy of all entered payment data, including the payment purpose code.

The Bank shall not be liable for delays or non-execution of payment orders if such outcome results from the application of measures in accordance with applicable laws on anti-money laundering, counter-terrorist financing, international restrictive measures, embargo regulations, or internationally accepted obligations in these areas.

In exceptional cases, the Bank may execute orders received via fax or email, in accordance with good business practice and to the extent possible, by verifying the apparent content and signature of the payment service user and any accompanying documentation. However, in the event of any misuse by the sender, the Bank shall not be liable to the payment service user and/or third parties for any damages arising from the receipt and execution of such orders.

11. International Incoming Payments

The Bank credits the transaction account of the payment service user with the value date corresponding to the credit of the Bank’s account abroad or with another domestic bank. If a foreign bank or another domestic bank revokes or amends the order before the value date, the Bank will not process the incoming funds and shall be released from any liability or obligation towards the payment service user.

If the instruction/data provided by the payment service user is incomplete, the Bank has the right to withhold the incoming funds until the missing information/instruction is received and shall credit the transaction account no later than the next business day following receipt of the required data. If the necessary information/instructions are not provided within the specified timeframe, the Bank is authorized to return the funds to the sender and deduct its costs from the incoming amount. The payment service user authorizes the Bank to debit service fees and intermediary bank charges arising from the execution of the transaction from the available funds on their transaction account.

In processing incoming funds, the Bank assigns the payment purpose code based on data received via the SWIFT message or based on information provided by the payment service user. The Bank is authorized to request additional information from the ordering bank, if necessary, regarding the purpose of the payment, as well as additional documentation from the payment service user, in accordance with applicable regulations on anti-money laundering and counter-terrorist financing.

The Bank shall not be liable for delays or non-execution of crediting incoming funds if such outcome results from the application of measures in accordance with applicable laws on anti-money laundering, counter-terrorist financing, international restrictive measures, embargo regulations, or internationally accepted obligations in these areas.

Upon receipt of funds on the account used for international payment transactions, the Bank shall:

transfer the received funds to the user’s transaction account for domestic payments; and/or
execute a cash withdrawal; and/or
execute payment obligations abroad.

12. E-Banking Services

The Bank provides online banking services based on a request submitted by the payment service user. For each individual service, a specific set of data is provided to the user to ensure secure use of the service. The service is linked to a transaction account with the Bank, which must be opened in advance. All transactions executed via online banking services are debited to the transaction account and carried out within the available balance.

For the execution of remote electronic payment transactions via online banking services, the payment service user signs all required documentation in accordance with the Bank’s internal policies and receives a service package consisting of:

for Hbklik: a sealed PIN, token/m-token, and user guide;
for mHBklik: a sealed PIN, token/m-token, and user guide.

For accessing online banking and performing remote electronic payment transactions, the payment service user uses strong customer authentication provided by the Bank.

When performing transactions via online banking, the payment service user is required to enter a precise and accurate payment purpose in accordance with the supporting documentation for the intended transaction. The Bank reserves the right to warn the user that transactions with imprecise or inadequate purposes may be suspended.

When executing domestic, international, or cross-border transactions, the Bank reserves the right to request supporting documentation forming the basis for the transaction prior to its execution.

The payment service user undertakes, in particular, to obtain, use, and maintain appropriate computer and communication equipment in accordance with the technical requirements specified in the user guide; to ensure that such equipment is protected and used in accordance with the user guide; to keep personalized security credentials confidential and protect them from theft, loss, damage, or misuse, and not to disclose them to third parties; to perform all transactions via online banking services in accordance with the Framework Agreement, applicable laws and regulations, and the user guide; to pay fees for the use of online banking services in accordance with the Bank’s tariff schedule; to immediately notify the Bank of any loss, theft, misuse, or unauthorized use of a mobile device or personalized security credentials, or any suspicion of unauthorized use of online banking services; and to promptly inform the Bank of any changes to personal or other relevant data necessary for secure and uninterrupted use of the services.

Before using online banking services, it is recommended that the payment service user review the user guide and regularly check notifications made available by the Bank through its distribution channels (the Bank’s website www.hipotekarnabanka.com, online banking applications, etc.).

The payment service user undertakes to provide only those data required by these General Terms and Conditions and the relevant user guide when accessing online banking services, and to discontinue use of the service if additional data are requested that are not предусмотрени by the user guide.

The Bank shall not be liable to the payment service user for any damage resulting from force majeure events (e.g., war, civil unrest, terrorism, natural disasters, etc.), interruptions in electricity supply, telecommunications failures, or other similar circumstances beyond the Bank’s control.

The payment service user agrees to be liable for any damage incurred as a result of acting contrary to the obligations set out in this section of these General Terms and Conditions.

The Bank is authorized to amend the user guide and the security requirements applicable to computer and communication equipment, including mobile devices, used for online banking services. Notification of such amendments will be made available in the Bank’s branches and on the Bank’s website, and it shall be deemed that the user has accepted the amendments if they continue to use the services after the changes have been published.

13. Apple Pay

Apple Pay, via the iOS platform, provides payment service users of Hipotekarna banka with an additional channel for contactless payments using Apple devices (iPhone, Apple Watch, iPad, and Mac). Apple Pay is a secure payment method, as payment card data is tokenized, and the token is unique to each device and cannot be linked to the actual card details. The service operates using NFC technology for contactless payments.

The payment service user must set up a screen unlocking method on their Apple device (passcode, fingerprint, or facial recognition). If no security authentication is set, Apple Pay cannot be activated. The actual card details are not included in the payment transaction, thereby preventing fraud and misuse.

Debit and credit Mastercard cards issued by Hipotekarna banka can be added to Apple Pay.

Cardholders who have added their Mastercard payment cards to Apple Pay may continue to use the physical cards as previously issued by the Bank.

In the event of loss, theft, or misuse of a device with Apple Pay activated, or of a card added to the Wallet application, the cardholder is obliged to notify the Bank immediately by contacting the Call Center.

14. Google Pay

Google Pay, via the Android platform, enables payment service users of Hipotekarna banka to use an additional channel for contactless payments using Android devices. Google Pay is a secure payment method, as payment card data is tokenized, and the token is unique to each device and cannot be linked to the actual card details. The service operates using NFC technology for contactless payments.

The payment service user must set up a screen unlocking method on their Android device (passcode, fingerprint, or facial recognition). If no security authentication is set, Google Pay cannot be activated. The actual card details are not included in the payment transaction, thereby preventing fraud and misuse.

Debit and credit Mastercard cards issued by Hipotekarna banka can be added (tokenized) to the Google Wallet.

Cardholders who have added (tokenized) their Mastercard payment cards to Google Wallet may continue to use the physical cards as previously issued by the Bank.

In the event of loss, theft, or misuse of a device with Google Pay activated, or of a card added to the Wallet application, the cardholder is obliged to notify the Bank immediately by contacting the Call Center.

15. Issuance and Acceptance of Payment Instruments / Payment Cards

Upon opening a transaction account, the Bank may issue payment instruments to the payment service user and/or their authorized representatives and/or cardholders, upon request of the payment service user, in accordance with these General Terms and Conditions and any specific terms applicable to such services.

The Bank issues a payment card to the cardholder in their name, linked to the transaction account of the payment service user. Transactions executed using the payment card are debited from the transaction account with the transaction date. The payment card is personal, non-transferable, and may be used only by the person whose name is printed on it. It is issued for an agreed period and may be used as a cashless payment instrument at physical points of sale in Montenegro and abroad displaying the card acceptance marks, for online purchases of goods and services, and for cash withdrawals up to the available balance on the transaction account.

If identification is required at certain points of sale, the cardholder must present a valid identification document. The cardholder is responsible for all costs incurred through the use of the payment card. The cardholder may agree separately with an online payment service provider on the type, manner, and conditions of use of such services, and the Bank shall not be responsible for such arrangements.

For the execution of cashless and cash payment transactions using a payment card, the payment service user signs all required documentation in accordance with the Bank’s internal policies and receives the payment card and PIN.

Payment cards issued by the Bank are enabled with the 3-D Secure standard. The cardholder is obliged, when using the card online, to verify the security features of the merchant (e.g., whether 3-D Secure is enabled, such as “Mastercard SecureCode” or “Verified by Visa”), and in particular to avoid payments on unverified websites or those without 3-D Secure.

Certain payment cards issued by the Bank allow cash withdrawal at EFTPOS terminals at points of sale where purchases are made, subject to the limits defined by the rules of Visa and Mastercard. Such cash withdrawals are clearly indicated on the purchase receipt.

All costs incurred domestically are debited from the transaction account in euros.

When transactions are processed in euros and the original currency differs from the settlement currency, the amount in the original currency is converted into euros using the exchange rates of Visa and Mastercard applicable on the transaction processing date, including the Bank’s applicable fees in accordance with its tariff schedule.

Due to differences in exchange rates between authorization and settlement, the authorized and charged transaction amounts may differ, meaning that the final charged amount may be higher or lower than the initially authorized amount. The cardholder is required to ensure sufficient funds to cover any exchange rate differences and must settle the full charged amount regardless of the initially authorized amount.

Similarly, due to exchange rate fluctuations between the time of transaction and the time of refund, the refunded amount may differ from the original transaction amount.

Authorization requests to the Bank are processed in euros, with Visa and Mastercard converting the original transaction amount using their respective exchange rates.

In the event of loss, theft, disappearance, or destruction of a payment card, the payment service user must notify the Bank immediately by phone at 19905 or, for calls from abroad, at +382 20 219905. The user acknowledges that the Bank records such calls, and that recordings may be used for complaint resolution or as evidence in legal proceedings.

The Bank may agree with a resident payment service user – a corporate client or entrepreneur – to provide payment card acceptance services via EFTPOS terminals, the internet, and/or other electronic devices (such as mobile phones, tablets, or computers supporting NFC technology).

Based on the concluded agreement, payment cards may be accepted at the merchant’s points of sale for cashless payments of permitted transactions (e.g., sale of goods, provision of services, utility bills, etc.).

The agreement on payment card acceptance regulates mutual rights and obligations between the Bank and the payment service user, including fees, installation and removal of EFTPOS terminals, technical support, and maintenance.

The Bank may entrust certain obligations related to payment card acceptance to its business partners, who perform such services on behalf of and for the account of the Bank.

The DCC (Dynamic Currency Conversion) service is available at EFTPOS terminals and ATMs. When using foreign payment cards, the cardholder must choose whether to accept DCC, i.e., whether to be charged in the card’s home currency and accept applicable fees in accordance with the Bank’s tariff schedule.

When contracting e-commerce services, the Bank and the payment service user define the terms and conditions for conducting transactions at the user’s online sales points, in accordance with the laws of Montenegro and the standards and rules of global payment systems Mastercard Worldwide and VISA International.

Similarly, when contracting payment card acceptance on other electronic devices, the Bank and the payment service user define the terms and conditions in accordance with applicable regulations, standards, and user guidelines forming an integral part of these General Terms and Conditions.

The Bank reserves the right to amend the user guide and security requirements applicable to equipment used for payment acceptance services. Notification of such changes will be made available in the Bank’s branches and on its website, and it shall be deemed that the user has accepted such changes if they continue using the services after publication.

16. Usage Limits for Payment Instruments

The payment service user and the Bank agree on spending limits for payment transactions executed using payment instruments. These limits are subject to change, and the Bank shall inform the payment service user through the communication channels defined in these General Terms and Conditions.

The Bank determines daily limits for cash withdrawals at ATMs and for payments for goods and services via EFTPOS terminals, and informs the cardholder of these limits upon card activation. Such limits are also subject to the limits of the network in which the payment card is used.

17. Card Validity and Replacement

A payment card is valid until the last day of the month indicated on the card.

The Bank shall replace a previously issued payment card upon its expiry, provided that the cardholder has duly fulfilled all obligations related to the card and other obligations towards the Bank, and has not previously cancelled the card in writing. The new card replacing the previously issued card becomes valid upon activation, while the existing card, if still valid, shall cease to be valid at that time.

The issuance of a new card replacing an expired card, regardless of the number of such replacements, and provided that the new card bears the same number, does not require renewal of the contractual relationship between the Bank and the cardholder. Accordingly, the expiry of the existing card and the issuance of a replacement card do not affect the continued use of the card with the same number, including in cases of direct debits for recurring payments at online points of sale.

The Bank reserves the right to replace a payment card with another card, within the same payment brand, upon reissuance or at the request of the cardholder.

The payment service user is obliged to return a damaged or defective payment card to the Bank, cut in half, either in person or by mail. The Bank shall cancel the damaged card and issue a new one. The replacement of a damaged payment card shall be charged in accordance with the Bank’s Tariff of Fees, unless the Bank decides otherwise.

18. Special Terms and Benefits for the Issuance and Use of Payment Cards

The Bank may, upon request of a consumer, issue a Visa Gold Relax payment card to a payment service user who already holds a transaction account and has been granted an authorized overdraft on that account in the form of an installment payment limit. The mutual rights and obligations between the Bank and the consumer regarding the approved installment limit are governed by a contract, while the applicable fees for the use of the Visa Gold Relax payment card are defined in the Bank’s Tariff of Fees and published on the Bank’s website.

The Bank reserves the right to determine the minimum transaction amount using the Visa Gold Relax payment card that is not eligible for installment payments and for which no fee is charged, as well as the number of installments, depending on the transaction amount.

Upon request of a consumer who already has a transaction account and has been issued a Mastercard Premium payment card, the Bank may, under agreed terms, approve an authorized overdraft on that account in the form of an installment payment limit for purchases made with merchants with whom the Bank has concluded relevant agreements (hereinafter: Premium Merchants). The Bank agrees with Premium Merchants on the maximum number of installments into which the purchase amount may be divided, as well as benefits such as discounts and/or installment payments when using the Mastercard Premium card. Cardholders are informed directly at Premium Merchant locations about the available benefits. The Bank does not charge fees for installment payments made using the Mastercard Premium payment card.

For a payment service user who already holds a transaction account and has been granted an authorized overdraft in the form of an installment payment limit, the Bank may issue a payment card – Mastercard Super Card – the use of which provides benefits with partners of the Super Card Program, available at www.superkartica.me.

The Bank may, upon request of a consumer who has a transaction account, issue a payment card that enables certain benefits with selected merchants when using the card. The Bank informs card users about such benefits in an appropriate manner (individually, collectively, through promotional materials, etc.).

The Bank may also enable cardholders to use certain benefits provided by third parties based on agreements concluded with the Bank. In such cases, the Bank will inform cardholders accordingly. However, the Bank shall not be responsible for the scope or quality of such benefits, nor can it be held liable for any damage resulting from inadequate provision of benefits by third parties. Any complaints related to such benefits should be addressed directly to the third parties providing them.

19. Payment Initiation Services, Account Information Services, and Confirmation of Funds Availability

The payment service user may use payment initiation services provided by a payment initiation service provider, account information services provided by an account information service provider, and may give explicit consent to the Bank to confirm the availability of funds on the account at the request of a card-based payment instrument issuer.

If the Bank suspects unauthorized access to accounts or access intended for fraudulent purposes by payment initiation service providers, account information service providers, or card-based payment instrument issuers, the Bank may deny such providers access. The Bank shall inform the payment service user/account holder thereof before or immediately after such action, as soon as it is objectively possible.

A. Payment Initiation Services

A payment service user / transaction account holder whose account is opened and maintained with the Bank may initiate a payment transaction through another payment initiation service provider. Strong customer authentication and authorization of such payment orders shall be carried out in accordance with these General Terms and Conditions.

The Bank is obliged to:

communicate securely with payment initiation service providers;
immediately upon receipt of a payment order from a payment initiation service provider, provide or make available to that provider all information on the initiation of the payment transaction and all information available to the account-servicing payment service provider regarding the execution of the transaction;
treat payment orders transmitted through a payment initiation service provider in a non-discriminatory manner, particularly in terms of receipt time, priority, and fees, compared to orders submitted directly by the payer, unless there is an objective reason otherwise.

B. Account Information Services

A payment service user / transaction account holder whose account is opened and maintained with the Bank has the right to use account information services provided by an account information service provider, for access to information on account balance and transactions.

The Bank shall perform strong customer authentication of the account holder in accordance with these General Terms and Conditions.

The Bank is obliged to:

communicate securely with account information service providers;
treat requests for information transmitted through such providers in a non-discriminatory manner, unless there is an objective reason otherwise.

C. Confirmation of Funds Availability

At the request of a card-based payment instrument issuer, the Bank shall, without delay, confirm whether the amount necessary for the execution of a card-based payment transaction is available on the payer’s transaction account, provided that:

the payer’s payment account is accessible online at the time the request is received;
the payer has given explicit consent to the Bank to respond to such requests;
such consent has been given prior to the first request for confirmation.

Use of the service described under point C implies the provision of two consents: one given to the card-based payment instrument issuer, and the other to the Bank.

These General Terms and Conditions do not govern the rights and obligations between the card-based payment instrument issuer and the payment service user/account holder, nor the process of granting consent to such provider.

20. HB Information Service

The HB Info service includes:

Sending notifications of account changes immediately after they occur;
Sending notifications related to the use of the Bank’s payment cards at ATMs, EFTPOS terminals, and online;
Sending a message in response to an inquiry on account balance and transactions by sending the message “STANJE” to 14575;
Sending a message in response to an inquiry on installment limit balance by sending the message “STANJE RATE” to 14575;
Sending a message in response to an inquiry on the account linked to the “Aktiviraj sitniš” service by sending the message “STANJE SITNIŠ” to 14575.

The user bears all risk of damage that may arise due to loss, unauthorized use, or change of the mobile phone number used to receive SMS or messages via mobile applications.

The Bank shall not be liable in cases where the user is unable to use the HB Info service due to disruptions in telecommunications networks or other circumstances beyond the Bank’s control.

For corporate clients, the Bank charges a fee for the HB Info service in accordance with the Tariff of Fees, published in the Bank’s branches and on its website, by debiting the user’s transaction account. The corporate client may cancel the HB Info service by submitting a written request.

21. Payment Initiation Services, Account Information Services, and Confirmation of Funds Availability

The Bank enables payment service users to execute SEPA Credit Transfers (SCT) in accordance with the applicable SEPA scheme rules established by the European Payments Council (EPC), the relevant decisions of the Central Bank of Montenegro, Directive (EU) 2015/2366 on payment services (PSD2), and other applicable regulations governing payment transactions.

SEPA Credit Transfers are available only for:

payment transactions in EUR;
transactions between payment accounts whose payment service providers are registered and technically enabled to participate in the SCT scheme;
SEPA member countries.

As a payment service provider, the Bank shall ensure that the payer provides the following data:

name of the payer and/or IBAN of the payer’s payment account;
amount of the credit transfer;
IBAN of the payee’s payment account;
if available, the name of the payee;
any payment-related information.

As the payer’s payment service provider, the Bank shall provide the payee’s payment service provider with the following data:

name of the payer;
IBAN of the payer’s payment account;
amount of the credit transfer;
IBAN of the payee’s payment account;
any payment description information;
any payee identification code;
name of any reference party of the payee;
purpose of the credit transfer;
any category of the credit transfer purpose.

As the payee’s payment service provider, the Bank shall provide or make available to the payee the following data:

name of the payer;
amount of the credit transfer;
any payment-related information.

The Bank, as a payment service provider, may not require users to provide the Business Identifier Code (BIC) of the payer’s or payee’s payment service provider.

SEPA Credit Transfers are executed no later than the next business day following the receipt of the order (D+1), in accordance with the defined cut-off times specified in the Bank’s Schedule.

Orders received after the cut-off time shall be deemed received on the next business day.

For SCT transactions, the SHA cost model applies – the payer bears the costs of their bank, while the payee bears the costs of their bank.

An SCT order may be revoked only until it becomes irrevocable in accordance with the Bank’s internal rules. After execution, revocation is possible only with the prior consent of the payee and may be subject to additional fees.

In the event of non-execution due to incorrect data (e.g., incorrect IBAN), the funds shall be returned to the payer’s account, reduced by any applicable costs.

The payer is required to apply prescribed security measures, including strong customer authentication (SCA). The Bank shall not be liable for losses resulting from unauthorized access if the payer has failed to apply appropriate security measures.

The user has the right to submit a complaint regarding the execution of an SCT within 13 months from the date of debit from the payment account.

V FEES, INTEREST RATES AND EXCHANGE RATES

The Bank’s Decision on the Tariff of Fees for Payment Services defines the fees that the payment service user is obliged to pay to the Bank. The Bank’s Decision on Interest Rates defines applicable interest rates, as well as the method and timing of interest calculation and the value dating of changes on transaction accounts. Interest rates, fees, and the method and timing of their calculation are subject to change in accordance with these decisions of the Bank.

The Bank calculates and charges the payment service user fees for maintaining a transaction account, as well as fees for executing individual payment transactions under the Framework Agreement, in accordance with the said Decision and its amendments, which are available in all Bank branches and on the Bank’s website. The payment service user confirms that they were informed of these prior to concluding the Framework Agreement and fully accept their application. The Bank also charges fees for other services related to opening, maintaining, and closing transaction accounts, as well as for other payment services not explicitly mentioned herein but covered by the Tariff of Fees. Any amendment to the Tariff of Fees shall automatically apply to the Framework Agreement from the date of its entry into force, without the need to conclude an additional annex. The Bank may agree with the payment service user on more favorable fee terms than those defined in the Tariff of Fees. The payment service user authorizes the Bank to debit any of their accounts held with the Bank, without additional consent, for all fees of other banks charged to the Bank in connection with corrections and complaints related to payment transactions resulting from incorrect instructions provided by the payment service user.

The payment service user agrees that the Bank calculates interest on funds in the transaction account in accordance with the Decision on Interest Rates and acknowledges that interest rates, as well as the method and timing of calculation and collection, are variable and subject to change in accordance with the Bank’s decisions and their amendments. These are available in all Bank branches and on the Bank’s website, and the payment service user confirms that they were informed of and accept their application prior to concluding the Framework Agreement. Any amendment to the Decision on Interest Rates shall apply to the Framework Agreement from the date of its entry into force/application, without the need to conclude an additional annex.

The Bank undertakes to inform the payment service user in writing of any change in the interest rate at least two months prior to its application, in the manner provided in Chapters V and VII of these General Terms and Conditions, if the new interest rate is less favorable than the current one. The conditions under which regular and default interest rates may be changed during the contractual relationship are defined by the Bank’s internal acts, which are publicly available to all payment service users.

For unauthorized overdrafts on the transaction account, the Bank charges default interest in accordance with the Decision on Interest Rates.

When executing international payment orders, the Bank applies its current exchange rate list and informs the payment service user in advance of the applicable exchange rate, or agrees on a specific rate with the user.

In the case of unexecuted, unauthorized, or incorrectly executed payment transactions by the Bank, the interest payable to the payment service user shall be calculated in accordance with the applicable statutory default interest rate.

VI COMMUNICATION – CLIENT INFORMATION REQUIREMENTS

For the purpose of managing the quality of communication and services, the Bank may enable payment service users to communicate via telephone, video, and chat, while reserving the right to modify the scope of communication channels and services over time.

Telephone, video, and chat communication represent real-time, two-way communication between the Bank and the payment service user, initiated at the request of the user, through the Call Center, internet connection, mobile devices, or other communication platforms.

Before using the video call service, the payment service user is advised to review the user guide available at: https://www.hipotekarnabanka.com/video-call-uslovi-koriscenja, which forms an integral part of these General Terms and Conditions.

Upon establishing communication, the identity of the payment service user is verified, after which the user provides consent to the communication rules, including consent to recording and storing the content of such communication, which may later serve as evidence in complaint resolution procedures, use of specific services, and similar cases.

During the contractual relationship between the Bank and the payment service user, communication shall be conducted in the Montenegrin language, unless otherwise agreed.

The Bank reserves the right to amend the user guide for communication with the Bank. Notification of such changes will be made available on the Bank’s website, and it shall be deemed that the payment service user has accepted such changes if they continue to use the services thereafter.

All information related to these General Terms and Conditions, as well as the Framework Agreement or individual payment transactions, is available in all Bank branches, on the Bank’s website, and upon personal request prior to initiating a payment transaction.

The Bank undertakes, prior to providing any payment service, executing a one-off payment transaction, or concluding a Framework Agreement, to provide the payment service user with a draft agreement, general terms, or a sample payment order containing all required information.

The Bank undertakes to provide the following pre-contractual information prior to the execution of a payment transaction:

that the payment service user must provide a unique identifier and/or data specification for the correct execution of the payment order;
execution timeframe, fees, exchange rate, and other relevant information related to the transaction.

After receiving and executing a payment order, the Bank undertakes to provide the payment service user with a copy of the completed order including the reference number, transaction amount in the requested currency, applicable fees and/or exchange rate (if applicable), and the date of receipt/processing.

The Framework Agreement, General Terms and Conditions, Schedule for the Receipt and Execution of Payment Transactions, and the Tariff of Fees are drafted in clear, simple, and comprehensive language.

For each individual payment transaction initiated directly by the payer, the Bank shall, upon request, provide information on the maximum execution time and all fees borne by the payer, including the amount of each fee.

Information obligations when providing payment services apply to the relationship between the Bank and a payment service user who is a retail client. For corporate clients, such obligations apply unless otherwise agreed.

The maximum execution time for payment services is defined by the Schedule for the Receipt and Execution of Payment Transactions.

The method and frequency of charging fees for payment transactions are determined in accordance with the applicable Tariff of Fees, unless otherwise agreed between the Bank and the payment service user.

The reference exchange rate for foreign currency conversion is applied in accordance with the Bank’s current exchange rate list, unless otherwise agreed between the Bank and the payment service user.

Interest on funds held in transaction accounts is calculated in accordance with the Decision on Interest Rates, unless otherwise agreed.

The Bank undertakes to inform the payment service user at least once a month, free of charge, via account statements, about the account balance, rejected or unexecuted orders, applicable fees, transaction amounts, interest, exchange rates, and other relevant information. These statements are also made available via electronic banking services, if used by the payment service user.

Statements may be delivered in Bank branches or via other channels made available by the Bank (e.g., email). Upon explicit request, the Bank will provide monthly paper statements to the address registered by the payment service user, free of charge.

The Bank undertakes to provide, at least once a year and free of charge, a report on interest and fees related to payment account services to retail clients, in accordance with agreed terms.

The Bank also undertakes to inform retail clients, at least once a year and free of charge, about the balance of funds on accounts held with the Bank.

Any additional or more frequent notifications requested by the payment service user may be provided subject to fees in accordance with the Tariff of Fees. The Bank may outsource the processing of account transactions and reporting to a third party, which will deliver statements in the agreed format, while the Bank undertakes to protect such data as confidential banking information.

The Bank and the payment service user may agree on more frequent delivery of account statements than the minimum defined in these General Terms and Conditions.

The language used for providing the above information and for concluding the Framework Agreement is Montenegrin, unless otherwise agreed.

The payment service user has the right, at any time during the contractual relationship, to request a copy of the Framework Agreement and General Terms and Conditions in paper form or another durable medium.

VII PROTECTIVE AND CORRECTIVE MEASURES

1. Obligations of the Client and Their Authorized Representatives as Users of the Bank’s Payment Instruments / Payment Cards

The payment service user or their authorized representative, who is authorized to use a payment instrument, is obliged to comply with security measures to protect that instrument, in particular to:

sign the card immediately upon issuance;
use the payment card in accordance with the provisions of the Framework Agreement and these General Terms and Conditions governing the issuance and use of payment cards;
take all reasonable measures to protect personalized security credentials, including one-time passwords;
memorize the assigned/received PIN and not disclose it to third parties, nor record it on a mobile device or keep it together with the card;
ensure that online transactions are initiated only from computers or other devices protected against viruses and other malicious software;
not leave the card unattended during use, i.e., ensure that the card remains within sight at all times (e.g., in restaurants, vehicles, petrol stations, etc.);
request a transaction receipt (slip) and immediately verify the transaction amount; where, due to technical conditions prescribed by card schemes, no receipt is issued at a point of sale, request that confirmation of the transaction be provided via email, phone, or another available method;
when using the card for online payments, verify the security features of the website (e.g., whether 3-D Secure is enabled, such as “Mastercard SecureCode” and/or “Verified by Visa”), and in particular avoid payments on unverified websites or those without 3-D Secure;
immediately notify the Bank at 19905 or +382 20 219905 (for calls from abroad), or another person designated by the Bank, of any loss, theft, misuse, or unauthorized use of the payment instrument.

1.1. Obligations of the Bank in Relation to Payment Instruments / Payment Cards

The Bank is obliged to:

ensure that the personalized security credentials of a payment instrument are accessible only to the payment service user authorized to use that instrument;
refrain from sending a payment instrument/payment card that has not been requested by the payment service user, except in cases of replacement of an already issued instrument;
ensure that appropriate means are available at all times to enable the payment service user to notify the Bank (at tel. no. 19905 or +382 20 219905 for calls from abroad) or a person designated by the Bank of the loss, theft, misuse, or unauthorized use of a payment instrument/payment card, or to request unblocking of the instrument once the reasons for blocking have ceased, or replacement of a blocked instrument/card with a new one;
upon request of the payment service user, provide appropriate proof that such notification of loss, theft, misuse, or unauthorized use of the payment instrument/payment card was submitted, provided that the request is made within 18 (eighteen) months from the Bank’s receipt of such notification;
prevent any use of the payment instrument after receiving notification of loss, theft, misuse, or unauthorized use.

The Bank bears the risk of delivery of the payment instrument and its personalized security credentials to the payment service user.

The Bank informs the payment service user about the issuance of a payment card via SMS, mobile application message, and/or by calling the phone number provided by the user, and, depending on the type of card, provides instructions on how to collect it (via postal or courier services, at a designated Bank branch, etc.).

For the purpose of timely communication, the Bank provides a 24-hour Call Center (tel. no. 19905 or +382 20 219905 for calls from abroad), through which payment service users may submit all necessary notifications.

2. Bank’s Right to Block a Payment Instrument / Payment Card

The Bank reserves the right to block a payment instrument for objectively justified reasons, including:

reasons related to the security of the payment instrument;
suspicion of unauthorized use or use of the payment instrument with intent to commit fraud;
in the case of a payment instrument with a credit line, a significant increase in the risk that the payer will be unable to meet their payment obligations;
suspicion of actions contrary to regulations on anti-money laundering and counter-terrorist financing;
failure of the cardholder to provide the Bank with the data and documentation required for issuing and using the card, or for maintaining the existing contractual relationship in accordance with applicable regulations and the Bank’s internal acts;
failure of the cardholder to settle obligations towards the Bank arising from the use of the card or on any other basis;
repeated entry of an incorrect PIN at a POS terminal or ATM.

The Bank shall inform the payment service user of its intention to block the payment instrument and the reasons for such action via the address/phone number provided when opening the transaction account. If the Bank is unable to notify the user in advance, it shall do so immediately after the blocking. Exceptionally, for justified security reasons or where contrary to applicable regulations, the Bank may refrain from notifying the user.

The payment service user is obliged, without delay, to notify the Bank, via the communication channels specified in Chapter II of these General Terms and Conditions, of any loss, theft, misuse, or unauthorized use of the payment instrument, in accordance with the Framework Agreement and agreements on additional services. If such notification is made via telephone (Call Center) or email, the user must confirm it in writing at any Bank branch without delay. Upon receipt of the notification, the Bank shall block the payment card and prevent further use. The Bank shall not charge any fee for reporting loss, theft, misuse, or unauthorized use of a payment instrument.

Once the reasons for blocking cease to exist, the Bank may replace the blocked payment instrument or card with a new one.

If the payment card has been blocked due to failure to meet obligations towards the Bank, the card shall be temporarily blocked and, once the reasons for blocking cease, it shall be unblocked and remain valid in accordance with these General Terms and Conditions.

3. Client Liability for Unauthorized Transactions

If the execution of unauthorized payment transactions results from the use of a lost or stolen payment instrument or from misuse of a payment instrument, the payment service user may be liable for losses related to such unauthorized transactions up to a maximum of EUR 50.

The payment service user shall not bear any losses, even up to the amount referred to above, if:

the loss, theft, or misuse of the payment instrument could not have been detected prior to the execution of the unauthorized transaction;
the unauthorized transactions are the result of an act or omission of an employee, agent, or branch of the payment service provider, or of a party to whom the provider’s activities have been outsourced;
the Bank did not provide appropriate means for reporting the loss, theft, or misuse of the payment instrument, in accordance with the Payment Services Law;
the Bank, as the payer’s payment service provider, did not require strong customer authentication;
the Bank, as the payee’s payment service provider, failed to apply the required strong customer authentication.

A payee or the payee’s payment service provider that fails to apply the required strong customer authentication shall compensate the payer’s payment service provider for any resulting loss.

Notwithstanding the above, the payment service user shall bear all losses related to unauthorized payment transactions if they acted fraudulently or intentionally or with gross negligence failed to fulfill one or more obligations, including: taking all reasonable measures to protect personalized security credentials immediately upon receipt of the payment instrument; using the payment instrument in accordance with the agreed terms; and/or promptly notifying the Bank or a person designated by the Bank upon becoming aware of loss, theft, misuse, or unauthorized use.

The payment service user shall not be liable for unauthorized payment transactions executed after notifying the Bank (or a designated party) without delay upon becoming aware of the loss, theft, misuse, or unauthorized use, unless they acted fraudulently.

For transactions made using a lost, stolen, or misused card that were authorized by PIN or OTP, the cardholder shall bear full liability regardless of when the loss, theft, or misuse was reported, as such losses are deemed to result from gross negligence or failure to comply with these General Terms and Conditions.

If the payment service user fails to notify the Bank without undue delay upon becoming aware of an unauthorized transaction, and no later than 13 (thirteen) months from the date of debit, they shall lose the right to claim in relation to such unauthorized transaction. The 13-month period shall not apply if the Bank failed to provide or make available information on the executed transaction. In such cases, the payment service user may exercise their rights beyond the 13-month period.

4. Client Rights in Case of Unauthorized or Incorrectly Executed Payment Transactions

In the event of an unauthorized payment transaction or an incorrectly executed payment transaction, including delays in execution, the payment service user has the right to request that the Bank rectify the unauthorized transaction and/or properly execute the payment transaction, or to claim interest or a refund of the amount of the incorrectly executed or unauthorized transaction, in accordance with the Law.

The payment service user shall lose this right if they fail to notify the Bank of the incorrect execution or unauthorized transaction without delay upon becoming aware of it, and no later than 13 (thirteen) months from the date of debit or credit to the transaction account. The 13-month period shall not apply if the Bank failed to provide or make available information on the payment transaction in accordance with the Law. In such cases, the payment service user may exercise their rights referred to in paragraph 1 beyond the 13-month period.

5. Bank’s Liability for Unauthorized or Incorrectly Executed Payment Transactions

In the event of an unauthorized payment transaction, including an unauthorized transaction initiated through a payment initiation service provider, the Bank is obliged to refund the payment service user the amount of the unauthorized transaction without delay, and no later than the end of the next business day after becoming aware of the transaction or after being notified of it, unless the Bank has reasonable grounds to suspect fraud and informs the Central Bank accordingly.

If the payment account of the payment service user has been debited for the amount of the unauthorized transaction, the Bank shall, within the timeframe specified above, restore the debited account to the state it would have been in had the unauthorized transaction not occurred. The value date of the credit to the payment account must not be later than the date on which the account was debited for the unauthorized transaction.

In addition to the above, in the event of an unauthorized payment transaction, the payment service user shall also have the right to claim compensation for any additional loss in accordance with the general rules on liability for damages.

6. Bank’s Liability for the Execution of Payment Transactions Initiated by the Payer or the Payee

If a payment order is executed in accordance with the unique identifier, it shall be deemed to have been correctly executed with respect to the payee specified by that identifier. The Bank shall not be liable to the payment service user for a non-executed or incorrectly executed payment transaction if the user provided an incorrect unique identifier. If the payment service user provides additional data alongside the unique identifier (e.g., details of the payee), the Bank shall be liable only for execution based on the unique identifier. In such cases, the Bank shall take reasonable measures to recover funds from an incorrectly executed transaction and may charge a fee for this service where the error was caused by the payment service user.

If the recovery of funds from an incorrectly executed transaction is not possible, the Bank shall, upon written request, provide the payment service user with all available information necessary to initiate legal or other proceedings to recover the funds.

The Bank shall be liable to the payment service user for the execution of a payment transaction initiated by the user, except in the following cases:

if the Bank proves that the payee’s payment service provider has received the transaction amount in accordance with the Law and the payment order—in such case, liability rests with the payee’s payment service provider, vis-à-vis the payee;
if the payment service user provided an incorrect unique identifier—the Bank shall not be liable for non-execution or improper execution to the extent related to the incorrect identifier;
in extraordinary and unforeseeable circumstances beyond the Bank’s control, the consequences of which could not have been avoided despite due care, or where the Bank was required to act in accordance with other applicable regulations;
in the case of international payment transactions where the Bank is not responsible for execution.

The Bank shall be liable to the payer (payment service user) for the proper execution of a payment transaction initiated by the payer, except where the payer provided an incorrect unique identifier. If the Bank proves that the payee’s payment service provider received the transaction amount within the deadlines prescribed by law and the payment order, liability for proper execution rests with the payee’s payment service provider, vis-à-vis the payee. In such cases, the payee’s payment service provider shall make the funds available to the payee and credit the payee’s account without delay.

In the case of a non-executed or incorrectly executed payment transaction initiated by the payer, the Bank shall, upon the payer’s request and regardless of liability, take immediate and free-of-charge measures to trace the transaction and inform the payer accordingly. Where the Bank is liable, it shall also reimburse any fees charged and any interest due to the payer in relation to the non-executed or incorrectly executed transaction.

Where a payment transaction is initiated by or through the payee, except where the Bank proves proper transmission of the payment order, or where the user provided an incorrect unique identifier, or in cases defined in Chapter X of these General Terms, the Bank of the payee shall be liable to the payee for correct transmission of the order to the payer’s payment service provider, as well as for value date and availability of funds in accordance with the received order and the applicable processing schedule. If the Bank of the payee is responsible for non-execution or incorrect execution, it shall immediately resend the payment order to the payer’s payment service provider. Upon request of the payee, and regardless of liability, the Bank shall take immediate measures to trace the transaction and inform the payee. If liable, the Bank shall also reimburse any fees charged and any interest due to the payee.

If the payer initiates a payment order through a payment initiation service provider, the account-servicing payment service provider shall, in accordance with this Chapter, refund the payer the amount of the non-executed or incorrectly executed transaction and restore the payment account to the state it would have been in had the transaction not occurred.

7. Refund of Funds for Authorized Payment Transactions Initiated by or Through the Payee

The payment service user (payer) has the right to a refund from the Bank of the full amount of an authorized payment transaction that has already been executed and that was initiated by or through the payee, provided that the following conditions are met:

a) the consent for execution, at the time it was given, did not specify the exact amount of the payment transaction; and
b) the amount of the payment transaction exceeds the amount that the payment service user (payer) could reasonably have expected, taking into account previous spending patterns.

In the case of SEPA payments, the payment service user (payer) shall have the right to a refund from the Bank even if the above conditions are not met.

The payment service user (payer) may not rely on the right to a refund where the reason for claiming that consent was not given for the exact amount of the payment transaction is the application of a reference exchange rate agreed with the Bank.

The payment service user (payer) and the Bank agree that the payer shall not have the right to a refund if the following conditions are met:

the payer has given consent for the execution of the payment transaction directly to their payment service provider; and
where applicable, the Bank or the payee has provided or made available to the payer information on the future payment transaction in the agreed manner at least four weeks prior to the due date.

8. Refund Request for Authorized Payment Transactions Initiated by the Payee

The payment service user shall lose the right to a refund if they fail to submit a refund request to the Bank within eight weeks from the value date of the debit.

The Bank may request from the payment service user any data necessary to determine whether the conditions for a refund, as defined in the previous section of these General Terms and Conditions, have been met.

Within 10 (ten) business days from receipt of the refund request, the Bank is obliged to:

refund the full amount of the payment transaction; or
provide a reasoned refusal of the refund request, including information that, if the payment service user does not accept the explanation, they may submit a proposal for out-of-court dispute resolution in payment services.

The Bank shall not refuse a refund where such right has been agreed in the case of direct debit between the Bank and the payment service user, where the exact amount of the payment transaction was not specified at the time of authorization, as well as in the case of SEPA payments.

VIII AMENDMENTS TO THE FRAMEWORK AGREEMENT / GENERAL TERMS AND CONDITIONS AND THEIR INTEGRAL PARTS

The Framework Agreement is concluded for an indefinite period and may be terminated by cancellation or termination. The payment service user and the Bank may, at any time, terminate the agreement by mutual consent with immediate effect, based on a written request from the payment service user. The payment service user may unilaterally terminate the Framework Agreement at any time by submitting a written notice to a Bank branch, with a notice period of 1 (one) month, except in cases provided for in Chapter VII of these General Terms and Conditions.

The Bank may terminate a Framework Agreement concluded for an indefinite period with a notice period of 2 (two) months. The Bank shall provide notice of termination to the payment service user in a clear and understandable manner, in paper form, to the last recorded address of the payment service user or through another agreed communication channel. The notice period shall commence from the date the notice is dispatched.

The Bank may charge a fee for termination of the Framework Agreement. Exceptionally, in the case of termination of a Framework Agreement concluded for a fixed term longer than 6 (six) months or for an indefinite period, the Bank shall not charge a fee for closing the transaction account if the payment service user terminates the agreement after the expiry of 6 (six) months. If the payment service user terminates the Framework Agreement, they shall pay fees only for services provided up to the date of termination, and if fees have been paid in advance, the Bank shall refund a proportional amount.

The Bank may terminate the agreement without notice in the following cases:

if the payment service user breaches the provisions of the Framework Agreement or these General Terms and Conditions;
if the payment service user provided incorrect or false personal data or other information relevant for lawful service provision at the time of concluding the Framework Agreement;
if the payment service user acts contrary to applicable laws and regulations on anti-money laundering and counter-terrorist financing, international restrictive or embargo measures, generally accepted standards of conduct or morality, or damages the reputation of the Bank;
in other cases defined by the Framework Agreement.

The Bank may unilaterally terminate the Framework Agreement for a Basic Account if at least one of the following conditions is met:

the consumer has intentionally used the account for unlawful purposes;
no transactions have been executed on the account for more than 24 consecutive months;
the consumer obtained the right to the account based on inaccurate information;
the consumer no longer has legal residence in Montenegro;
the consumer has subsequently opened another payment account enabling the use of services associated with the Basic Account.

If the Bank terminates a Basic Account agreement in cases referred to in points 2, 4, and 5 above, it shall notify the consumer at least 2 (two) months prior to termination, free of charge and in paper form, stating the reasons for termination, unless such disclosure would be contrary to national security or public interest. In cases referred to in points 1 and 3, termination shall take effect upon delivery of the termination notice.

The termination notice shall include information on the consumer’s right to out-of-court dispute resolution in accordance with the law.

If the payment service user has multiple Framework Agreements with the Bank, termination of one agreement shall not affect the others, except in cases specified in points 1, 2, 3, and paragraph 5 of this Chapter. The payment service user agrees that the Bank determines the procedure for closing the transaction account upon termination of the Framework Agreement. Upon termination, the payment service user is obliged to settle all outstanding obligations and submit an order for the transfer of funds to bring the account balance to zero. If no such order is given, any remaining funds shall remain available to the payment service user even after termination of the agreement.

IX DURATION AND TERMINATION OF THE AGREEMENT

The Bank may charge a fee for termination of the Framework Agreement. Exceptionally, in the case of termination of a Framework Agreement concluded for a fixed term longer than 6 (six) months or for an indefinite period, the Bank shall not charge a fee for closing the transaction account if the payment service user terminates the agreement after the expiry of 6 (six) months. If the payment service user terminates the Framework Agreement, they shall pay fees only for services provided up to the date of termination, and if such fees were paid in advance, the Bank shall refund a proportional part thereof.

The Bank may terminate the agreement without a notice period in the following cases:

if the payment service user breaches the provisions of the Framework Agreement or these General Terms and Conditions;
if the payment service user provided incorrect or false personal data or other information relevant for lawful and proper service provision at the time of concluding the Framework Agreement;
if the payment service user acts contrary to applicable laws and regulations on anti-money laundering and counter-terrorist financing, international restrictive or embargo measures, internationally accepted obligations in this field, generally accepted standards of conduct or morality, or damages the reputation of the Bank;
in other cases defined by the Framework Agreement.

The Bank may unilaterally terminate the Framework Agreement for a Basic Account if at least one of the following conditions is met:

the consumer has intentionally used the account for unlawful purposes;
no transactions have been carried out on the account for more than 24 consecutive months;
the consumer obtained the right to the account based on inaccurate information;
the consumer no longer has legal residence in Montenegro;
the consumer has subsequently opened another payment account enabling the use of services associated with the Basic Account.

If the Bank terminates a Basic Account agreement in accordance with points 2, 4, and 5 above, it shall notify the consumer at least 2 (two) months prior to termination, free of charge and in paper form, stating the reasons for termination, unless such disclosure would be contrary to national security or public interest. In cases referred to in points 1 and 3, termination shall take effect upon delivery of the termination notice to the consumer.

The termination notice shall include information on the consumer’s right to out-of-court dispute resolution in accordance with the law.

If the payment service user has concluded multiple Framework Agreements with the Bank, termination of one agreement shall not affect the others, except in cases referred to in points 1, 2, 3 and paragraph 5 of this Chapter. The payment service user agrees that the Bank determines the procedure for closing the transaction account upon termination of the Framework Agreement. Upon termination, the payment service user is obliged to fully settle all obligations related to the transaction account and to submit an order for the transfer of funds to bring the account balance to zero. If the payment service user fails to provide such an order, any remaining funds in the transaction account shall remain available to the user even after termination of the Framework Agreement.

X OUT-OF-COURT PROCEDURES

If the payment service user considers that the Bank is not complying with the provisions of the Framework Agreement and/or the agreement governing a specific transaction account, the Law on Payment Transactions, or these General Terms and Conditions, they may submit a complaint to the Bank. The complaint shall be submitted in writing to the Bank’s registered address (Bulevar Josipa Broza Tita 67, Podgorica), to any Bank branch, or electronically via email at: prigovor@hb.co.me. The Bank is obliged to respond to the complaint within 15 (fifteen) business days from the date of receipt, in paper form or, if agreed between the parties, on another durable medium.

If the Bank is unable to respond within the above deadline due to reasons beyond its control, it shall, within 15 (fifteen) business days from receipt of the complaint, inform the payment service user of the reasons for the delay and specify a deadline for providing the response, which shall not exceed 35 (thirty-five) business days from the date of receipt of the complaint.

The payment service user has the right to protect their rights and interests through out-of-court dispute resolution mechanisms, including the right to submit a complaint to the Central Bank and to pursue alternative dispute resolution, in accordance with the laws governing alternative dispute resolution and arbitration, and, for retail clients, in accordance with consumer protection laws. The competent body for alternative consumer dispute resolution is the Center for Alternative Dispute Resolution, located at Serdara Jola Piletića bb, Podgorica, with the email address: centarzaars@centarzaars.me.

The right of the payment service user to alternative dispute resolution does not affect their right to initiate court proceedings in accordance with applicable law.

XI EXCLUSION OF LIABILITY

The Bank shall not be liable for the inability to perform payment services in cases where objective obstacles prevent the execution of payment transactions. Objective obstacles shall be understood as any events or actions that hinder or prevent the execution of payment services, including those caused by force majeure, war, civil unrest, terrorist acts, strikes, disruptions in telecommunications networks, or any other events that cannot be attributed to the Bank.

Such obstacles also include the interruption or malfunctioning of the RTGS system and the SWIFT network.

The exclusion of liability shall also apply in cases where the Bank was obliged to act in accordance with applicable laws and regulations.

XII DATA PROCESSING

Data obtained by the Bank in the course of its operations relating to the payment service user, including personal data, as well as data on payment transactions, account balances, and changes on the user’s transaction account, shall constitute banking (business) secrecy. The Bank, members of its governing bodies, employees, and persons engaged by the Bank shall not disclose, provide, or allow access to such data to third parties, except in cases prescribed by applicable law.

When collecting and processing personal data of the payment service user, the Bank shall act in accordance with the law governing personal data protection.

By signing the Framework Agreement, the payment service user gives consent to the Bank to undertake all actions related to the processing of their personal data specified in the Framework Agreement, as well as in the documentation submitted in accordance with applicable regulations and/or the Bank’s internal acts, for the purposes of the Bank’s regular operations, prevention of money laundering and terrorist financing, implementation of FATCA (identification of U.S. persons and reporting in accordance with applicable regulations), and the detection and investigation of fraud or misuse in payment transactions.

The Bank is authorized to process sensitive payment data and personal data for the purposes of preventing, investigating, and detecting fraud related to payment transactions, of which the payment service user shall be informed. Such data may also be shared with third parties in accordance with the Law on Payment Transactions and data protection regulations. In such cases, no explicit consent of the payment service user is required.

XIII FINAL PROVISIONS

These General Terms and Conditions are available on the Bank’s website (www.hipotekarnabanka.com) and in all Bank branches.

By signing the Framework Agreement, the payment service user confirms that they are familiar with these General Terms and Conditions, that they have been given sufficient time to review their content, and that they fully accept them.

The Montenegrin language shall be used for contractual relationships and communication between the Bank and the payment service user, both prior to and during the contractual relationship, unless otherwise agreed.

These General Terms and Conditions have been prepared in accordance with the applicable laws and regulations of Montenegro, which shall also govern their interpretation.

Any disputes arising between the Bank and the payment service user from the Framework Agreement and these General Terms and Conditions shall be resolved in accordance with the laws of Montenegro. In the event of a dispute, the court having jurisdiction shall be the court at the Bank’s registered seat.

Provisions relating to cross-border payment transactions shall apply from the date of Montenegro’s accession to the European Union.

For matters not regulated by these General Terms and Conditions, applicable laws and regulations, decisions and instructions of competent authorities, and the Bank’s internal acts shall apply. The payment service user confirms that they were informed of these prior to concluding the Framework Agreement or initiating a one-off payment transaction, and that they are available in all Bank branches and on the Bank’s website.

These General Terms and Conditions shall enter into force on 28 June 2025 and shall apply from 28 August 2025.

The General Terms and Conditions governing transaction accounts and the provision of payment and other services in Hipotekarna banka AD Podgorica dated 8 April 2024 shall cease to be valid as of the effective date of these General Terms and Conditions.