T293 Questions and Answers

Your account must operate within the limit and you must pay all interest, fees and charges without going over the limit.

Please monitor your account balance as we will not tell you about items which are being presented for payment and which we may have to dishonour.

If we decide to pay items which would create an unauthorised overdraft, this does not mean we will do so in future.

2.1 General

If we change our principal interest rates (including 'Charity', 'AA' and 'A') or our surcharge rate, we will publish the new rates in at least one national newspaper. We also display those rates on notices in all our branches. Variations apply from the date shown on the notices. If you would like details of other variable rates, please ask.

The new interest rate which applies is shown on the next account statement issued after an interest rate change.

We charge interest (including surcharge) to accounts every three months, in March, June, September and December and up-to-date when your account is closed. We may charge interest to accounts at other intervals but before we do we will give three months' notice in at least one national newspaper.

We always charge compound interest. This means that interest charged to accounts bears interest until it is paid.

2.2 Working out the interest

We work out the interest on the balance you owe each day on your account after we have taken account of items paid out. When we work out your interest we take account of items paid out as soon as we give value for them and we do not take account of the value of items paid in until we actually receive value for them.

The credit limit on your account is notified to you in your letter of sanction and will reduce each month in line with your agreed monthly repayment. If you owe more than this limit (unauthorised overdraft) we will charge interest on the amount of the unauthorised overdraft at our surcharge rate in addition to the Interest Rate. We work out the surcharge each day on the unauthorised overdraft for as long as the unauthorised overdraft continues. At present the surcharge rate of interest is 12% (variable) per annum.

We also work out an interest adjustment for unpaid items.

You can avoid surcharge interest, by ensuring that your account operates in credit, or within your sanctioned limit.

You must provide any specified security before you use the masterplan account unless we allow extra time. Having followed the terms of the Consumer Credit Act, 1995 and without affecting our right to demand repayment at any time, we may demand repayment of your masterplan account if the security for the facility is also security for other money you owe us (or any of our subsidiaries) and the security becomes enforceable to pay any of the other money.

If the security includes a guarantee, we must notify the terms of the facility, and any changes in those terms, to the guarantor.

4.1 Joint and several liability

All borrowers on a joint account are responsible on their own, and together with the other joint account borrowers, to repay us according to the terms and conditions of this agreement.

4.2 If there is more than one borrower or guarantor (multiple parties)

If the expressions 'the Borrower', 'you' or 'the guarantor' refer to more than one person those expressions refer to all or each of those people.

4.3 Fire insurance

If property is security for the Masterplan facility:

• You must take out and maintain (for the entire period of the Masterplan facility) index-linked insurance cover for fire and other usual risks for the full reinstatement value of the property;
• We can decide the level of insurance even if you do not agree with us;
• The insurance must be with an insurance company acceptable to us;
• You must inform the insurance company that we have an interest in the property;
• Before you use the masterplan, and, if we ask you, at any time during the period of the masterplan facility, you must show us that the insurance cover exists;
• If we ask you, you must complete a form for us to send to the insurance company telling them of our interest in the property;
• If we become aware that a premium has not been paid, we can (but we do not have to) pay the unpaid premium and charge it to your account.

4.4 (If we delay using our rights) Forbearance

If we delay or do not use our rights under this agreement, we are not waiving them and we can still use them in the future.

4.5 Letters

If we write to you about this agreement, the letter will be either hand delivered or sent by ordinary post addressed to you at the address shown in your letter of sanction (or any changed address you have told your branch about). The letter will be deemed to have been served on you when delivered by hand or on the second business day (not including Saturdays) after the date we posted it.

If you change your address, you must inform your branch.

4.6 Force majeure (events we cannot control)

We will not be liable if we cannot perform any of our obligations because of industrial disputes or other events we cannot control.

Unless we have made an obvious error, our certificate of any amount you owe will be binding on you.

We may pass information about this masterplan facility and about you to any of the companies in AIB group.

This credit agreement is governed by the laws of Ireland.