These risk disclosure statements are not exhaustive in referring to all the risks involved. Customers must carefully consider whether Currency Linked Deposit is suitable for his/her investment in light of his/her own financial position, investment objectives and the risks he/she agrees to bear before investing in Currency Linked Deposit. Customers are advised to seek independent financial and professional advice as appropriate.

Currency Linked Deposit is different from traditional fixed deposit in that it is a type of structured product investment that involves considerable risks. Currency Linked Deposit is not principal protected. The return of Currency Linked Deposit depends on the market conditions prevailing at the fixing time on the Fixing Date. Customers may suffer losses as a result of depreciation in the value of the Linked Currency. Such losses may offset the interest earned on the deposit and may even result in losses to the principal amount of the deposit.

Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effect of normal market forces may at times be countered by intervention by central banks and other bodies. At times, exchange rates and prices linked to such rates may rise or fall rapidly. The related governments or authorities may impose exchange controls or other monetary measures without notice. These controls or measures may have an adverse effect on the convertibility or liquidity of a currency and may have unexpected consequences on Currency Linked Deposit. The Linked Currency credited to the Customer´s Settlement Account may be worthless in extraordinary circumstances and the Customer may lose all principal and interest of the deposit.

The maximum return on Currency Linked Deposit is limited to a predetermined amount of principal and interest even if the Customer´s view of the market movement of the Linked Currency is correct.

Currency Linked Deposit is not the same as, and should not be regarded as a substitute for, normal fixed deposits.

The Customer investing in Currency Linked Deposit faces issuer´s risk including risk on the Bank´s creditworthiness and in the event that the Bank becomes insolvent and/or default, the Customers will be considered as unsecured creditors and will have no preferential claims to any assets or collaterals ("Issuer´s Risk"). Currency Linked Deposit is subject to both the actual and perceived measures of the creditworthiness of the Bank and there is no assurance of protection against a default by the Bank in respect of its payment obligations. In the worst scenario, such as the insolvency of the Bank, the Customer may lose all principal and interest of the Currency Linked Deposit.

In these Terms, save where the context otherwise requires:
"Account Rules" means the Bank´s Account Rules as amended or supplemented by the Bank at its sole discretion which may be in effect from time to time;
"Bank" means Chong Hing Bank Limited including its successors and assigns;
"Banking Day" means a day on which (a) the Bank is open for business in Hong Kong (but excluding (1) Saturdays and (2) any period of time between (i) the hoisting of typhoon signal number 8 or above or a black rainstorm warning and (ii) such time after the lowering of such signal or warning as the Bank may in its absolute discretion determine) and (b) if any payment is to be made in a currency other than Hong Kong Dollars, commercial banks are open for business in the principal financial centre of that currency;
"Confirmation" has the meaning set out in Clause 7;
"Currency Linked Deposit(s)" or "CLD(s)" has the meaning set out in Clause 2.1;
"Customer" means any person making an order with the Bank to invest in CLD(s) or is holding one or more immature CLD(s); if the relevant CLD is in the joint names of two or more persons, "Customer" means all of such individuals collectively; if the Customer is a sole proprietor, "Customer" includes the sole proprietor and successor(s) to such proprietorship; or if the Customer is a partnership, "Customer" means all the partners from time to time of the partnership and the successor(s) to such partnership;
"Deal Date", in respect of a Currency Linked Deposit, means the day on which a binding contract for CLD is formed between the Customer and the Bank pursuant to Clause 6.
"Deposit Currency" means the currency, as selected by the Customer and agreed by the Bank, in which the Customer makes his original deposit for the purposes of placing a Currency Linked Deposit with the Bank;
"Fixing Date", in respect of a Currency Linked Deposit, means the date, as agreed by the Bank and the Customer on the Deal Date, on which the Bank determines the applicable Fixing Rate;
"Fixing Rate", in respect of a Currency Linked Deposit, means the prevailing market exchange rate (expressed in the same quotation method as the Strike Rate) between the relevant Deposit Currency and its Linked Currency at or about 2:00 p.m. (Hong Kong time) on the relevant Fixing Date as determined by the Bank in its absolute discretion from time to time;
"Hong Kong" means the Hong Kong Special Administrative Region of the People´s Republic of China;
"Investment Account" means each investment account opened, maintained and operated in the name of the Customer with the Bank for the purpose of holding the Customer´s investments (including Currency Linked Deposit(s)) made pursuant to these Terms and / or the Investment Account Conditions;
"Investment Account Conditions" means the Bank´s Investment Account General Terms and Conditions as amended or supplemented by the Bank at its sole discretion which may be in effect from time to time;
"Issuer´s Risk" means in the event that a structured product issuer becomes insolvent and default, the investors concerned will be considered as unsecured creditors and will have no preferential claims to any assets held by the issuer;
"Linked Currency", in respect of a Currency Linked Deposit, means the currency, as selected by the Customer and agreed by the Bank, into which the relevant Deposit Currency may be converted;
"Maturity Date", in respect of a Currency Linked Deposit, means the last day of the tenor in respect of the related Currency Linked Deposit, as stated on the relevant Confirmation;
"Principal" has the meaning set out in Clause 8;
"PDPO Notice" means the Notice to Customers and other Persons relating to the Personal Data (Privacy) Ordinance and data policies of the Bank, issued or made available by the Bank to its customers and other persons which may be amended or supplemented by the Bank at its sole discretion from time to time;
"Risk Disclosure Statement" includes any or all of the risk disclosure statements as set out above and in the Investment Account Conditions respectively;
"Settlement Account" means the account designated by the Customer in relation to his Investment Account into which the principal and interest in relation to his CLD (in either Deposit Currency or Linked Currency) will be credited on the Settlement Date;
"Settlement Date" means the date on which the proceeds of the CLD will be credited to the Settlement Account of the Customer as stated on the relevant Confirmation;
"Strike Rate", in respect of a Currency Linked Deposit, means the exchange rate as determined by the Bank in its absolute discretion and agreed by the Customer between the relevant Deposit Currency and its Linked Currency on the date of the contract for that Currency Linked Deposit and specified in the Confirmation for that Currency Linked Deposit;
"Terms" means these terms and conditions for Currency Linked Deposits (as may from time to time be amended or supplemented by the Bank at its sole discretion).

In these Terms:

1. words and expressions importing the singular only shall include the plural and vice versa and references to one gender shall include references to all other genders;
2. "Clause" refers to a clause of these Terms unless otherwise specified, and clause headings are inserted for convenience of reference only and shall not affect construction;
3. the expression "person" shall include a company, society, corporation, firm, partnership, joint venture, trust, state, agency of a state, or an individual and in the case of an individual his or her executors, administrators, committee, receiver or other person lawfully acting on behalf of every such person;
4. the words "including" or "includes" shall be construed as meaning "including without limitation" or "includes without limitation" (except when used in the computation of time periods).
   

If there is any conflict between the English and Chinese versions of these Terms, the English version shall prevail for all purposes to the extent of such conflict.

These Terms shall apply to all moneys placed or to be placed with the Bank for the purpose of its Currency Linked Deposit product under which, depending upon changes in the currency exchange rate between a Deposit Currency and its Linked Currency, the principal of and interest on such moneys may be paid in the Linked Currency instead of the Deposit Currency (all such principal moneys be collectively called "Currency Linked Deposit" or "CLD").

In addition to these Terms, the Investment Account Conditions and the Account Rules shall also apply to Currency Linked Deposits. If there is any conflict between these Terms and such other documents, these Terms shall prevail to the extent of such conflict. If there is any conflict between the Investment Account Conditions and the Account Rules, the former shall prevail to the extent of such conflict.

The Bank shall act as the principal in all CLD transactions with the Customers.

The Customer has read, understood and agreed to accept the risks as disclosed under the Risk Disclosure Statements together with such other risks as may be involved as to which the Bank is not subject to any duty or liability to the Customer.

The Customer may not withdraw CLD, or request the Bank to close his position, before maturity. CLD will not be automatically renewed.

Pursuant to the principles of the Deposit Protection Scheme in Hong Kong, structured deposits are not protected. Currency Linked Deposit is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.

Prior to entering into any contract for a CLD, the Customer shall open and maintain an Investment Account with the Bank pursuant to, among others, the Investment Account Conditions.

The Bank shall have from time to time the sole absolute discretion to determine (a) the provision of quotation of a specific currency pair in respect of a CLD, (b) the interest rate payable in respect of a CLD, (c) the minimum and maximum amount of a Deposit Currency, (d) the tenor of a CLD and its Maturity Date, (e) any exchange rate to apply in respect of a CLD, (f) any other terms of a CLD, and (g) whether or not to accept any instructions from the Customer in relation to a CLD.

If the Customer accepts or agrees to any terms offered as quoted by the Bank for a CLD, whether such acceptance or agreement is made either orally or in writing, there shall form forthwith upon such acceptance or agreement a binding contract for such CLD between the Customer and the Bank. The Customer shall accordingly be bound to make, and the Bank shall be bound to take, the deposit in the Deposit Currency and on such terms as agreed, which shall be recorded in the Bank´s Confirmation to the Customer. For the avoidance of doubt, the contract shall not be conditional nor shall depend on/be otherwise effected by the receipt by the Customer of such Confirmation or any written confirmation. If the Customer does not place adequate fund for his CLD after formation of a binding contract, the Customer will be liable for all costs and losses incurred by the Bank as a consequence, including the cost of unwinding hedging positions taken by the Bank in respect of the relevant CLD and interest The Customer agrees to inform the Bank immediately if the Customer fails to receive the Currency Linked Deposit Confirmation from the Bank within 5 Banking Days after such acceptance or agreement of CLD.

Without prejudice to the terms of the Investment Account Conditions, the Customer agrees that the Bank may (without obligation) from time to time record any conversations (including instructions) at telephone or otherwise between the Customer and the Bank by any system operated by the Bank and or else in writing and that the Bank may (without obligation) record all other instructions in writing and / or by other means (including electronic or digital means). The Bank´s records of such conversations shall be conclusive and binding on the Customer in the absence of manifest error, negligence or fraud on the part of the Bank. The Bank may dispose of and/or erase any such written or other records after the expiration of such period as the Bank may determine at its sole discretion.

The Bank will not be liable for any loss which the Customer may suffer if the Bank fails or is unable to take instructions from the Customer for any reason beyond the Bank´s reasonable control including the case where the Bank´s computer and/or other systems is/are inoperative or defective for any reason but excluding cases caused by fraud, negligence or wilful default of the Bank, its authorised employee or agent.

Within 2 Banking Days after the day on which a contract for a Currency Linked Deposit has been formed pursuant to Clause 6, the Bank shall issue to the Customer a written confirmation ("Confirmation") setting out the terms of such contract of Currency Linked Deposit. The Customer must immediately examine all the details of the Confirmation and notify the Bank forthwith if the Customer considers that any detail set out in the Confirmation as incorrect, incomplete or otherwise erroneous in any respect. If the Bank does not receive any notification from the Customer within 5 Banking Days after the deemed receipt of the Confirmation by the Customer pursuant to Clause 15, the Customer shall be deemed to have confirmed all the contract details set out in the Confirmation as true, complete and accurate in all respects.

Interest on the Principal shall accrue and be payable in arrears on the Maturity Date, which shall be calculated on the basis of the actual number of days elapsed (including the first day but excluding the last day of the tenor during which it accrues) and a 360/365 day year, depending on the "day count" convention applicable by market practice to the relevant Deposit Currency, as determined by the Bank at its sole discretion in good faith.

If, for any reason, the Maturity Date and / or Fixing Date originally specified for a Currency Linked Deposit is not a Banking Day, then it shall be postponed to the following Banking Day, and additional interest will accrue on the relevant Principal at the Bank´s ordinary savings deposit rate for the Deposit Currency of that Currency Linked Deposit (which may be different from the interest rate specified in the Confirmation) for each day from, and including, the originally specified Maturity Date to, but excluding, the actual Maturity Date, which shall be determined by the Bank at its sole discretion.

Unless the Bank shall have received instructions from the Customer to the contrary 2 Business Days before the relevant Maturity Date in relation to the Principal and interest, such Principal and interest shall be credited in the relevant currency into the Customer´s Settlement Account with the Bank.

At its discretion, the Bank may effect payment in respect of any Currency Linked Deposit established in a currency other than Hong Kong Dollars either in the Deposit Currency or its Linked Currency pursuant to Clause 8.1 above or the equivalent amount of Hong Kong Dollars converted at the Bank´s spot rate of exchange at the time of payment, as determined by the Bank at its sole discretion.

Each Currency Linked Deposit will be payable only at the relevant branch of the Bank in Hong Kong where the deposit is made even if the Currency Linked Deposit is made (or may be repaid) in a currency other than Hong Kong Dollars.

Notwithstanding any provision to the contrary of these Terms including Clause 8.1 and this Clause, the Bank may at any time without liability and without disclosing any reason suspend, freeze or terminate Currency Linked Deposit and any account of the Customer for compliance with the legal and/or regulatory requirements, or as the Bank may deem as prudent.

The Bank may make available to the Customer information which may include indicative exchange rates from time to time, which is and shall be provided for the Customer´s reference only.

The Customer agrees that the Bank does not assume any liability for the accuracy or completeness of any indicative exchange rates and such information is provided for the Customer´s reference only. Customer shall consult his independent professional advisors in relation to his placement of the CLD and the terms and conditions governing or relating thereto.

If any exchange rate (other than a Strike Rate) or any other matter relating to a Currency Linked Deposit is to be determined or decided on by the Bank, the Bank shall make such determination or decision in good faith and, in the case of exchange rates other than a Strike Rate, in accordance with generally accepted practices in the relevant foreign exchange market. Subject to the latter qualification, each such determination or decision shall, at the Bank´s sole discretion, be conclusive and binding in the absence of manifest error, negligence or fraud.

The Customer shall not assign, mortgage, transfer, dispose of, charge, pledge or otherwise encumber any of his title or interest of and in the Currency Linked Deposit other than to the Bank to secure the liabilities of the Customer or any other person in favour of the Bank as the Bank may agree from time to time.

Any notice or other document issued by the Bank shall be deemed to have been validly served on the Customer if addressed to the Customer at the address for notices notified to the Bank in writing by the Customer from time to time or which appears in the Bank´s records as the Customer´s last known address. Any notice or other document delivered personally shall be deemed to have been validly served at time of delivery. Any notice or other document dispatched by post (postage prepaid) shall be deemed to have been validly served (a) 48 hours after posting, if the address is in Hong Kong or (b) 7 days after posting, if the address is outside Hong Kong (including the People´s Republic of China), its return by the post office notwithstanding. Any notice or other document sent by telex or by facsimile shall be deemed to have been validly served at the time of transmission.

Notwithstanding any provision to the contrary, service of any notice or document on any one person constituting the Customer will be deemed effective for such other person(s) of the Customer.

These Terms and each Currency Linked Deposit shall be governed by the laws of Hong Kong. The Customer submit irrevocably to the non-exclusive jurisdiction of the courts of Hong Kong.

The Bank shall be entitled at any time by notice of, not less than 30 days (except outside the Bank´s reasonable control) to the Customer, to supplement, amend or change any or all of these Terms at the Bank´s sole discretion which shall be effective as the date as the Bank may designate by placing such updated version of these Terms at the Bank´s website and/or any branch of the Bank in Hong Kong.