Landsbankinn's General Terms and Conditions

Landsbankinn hf. | No. 1532-01 | 12 June 2018

1 Introduction

1.1 Scope

The General Terms and Conditions of Landsbankinn (hereafter “the Terms” or ”these Terms”) apply to transactions between Landsbankinn hf. (hereafter “Landsbankinn” or “the Bank”) and a customer. A customer may be a private individual or a legal entity (hereafter “legal entity” or “undertaking”). Special rules, differing from the provisions of these Terms, may apply to customers who are not consumers as provided for by the Act on Consumer Credit and/or the Act on Payment Services. In addition to these Terms, contract provisions, terms and rules may apply to specific products or services provided by the Bank. Such provisions shall take precedence over these Terms, in the case of any discrepancies. The Bank’s terms are published on its website and are available in the Bank’s branches.

1.2 Changes to Terms

The Bank may at any time alter these Terms unilaterally and without notice. Amendments to the Terms are announced to customers via a durable medium, with a message sent through online banking and/or a general notice posted on the Bank’s website.

If amendments to these Terms involve changes to a Framework Contract on payment services and are not to the advantage of customers, the amendments shall enter into effect with two months’ notice. Notices of amendments to such provisions of the Terms will call attention to the fact that customers may notify the Bank of the termination of the Framework Contract before the changes enter into effect. The customer is considered to have approved the changes unless he/she notifies the Bank otherwise before the effective date. If a customer terminates a Framework Contract before the two months’ notice is up yet continues to use the payment account in question or a payment instrument linked to the account after the two months’ notice has lapsed, the customer is considered to have approved the changes.

1.3 About Landsbankinn

Landsbankinn provides individuals, undertakings and investors throughout Iceland with financial services based on long-term business relationships. Landsbankinn operates online banking, bank branches, outlets and ATMs at various locations throughout Iceland. The Bank is licensed to operate as a commercial bank in accordance with Act No. 161/2002, on Financial Undertakings, and is subject to supervision by the Financial Supervisory Authority (FME), Katrínartún 2, 105 Reykjavík, Iceland, cf. Act No. 87/1998, on Official Supervision of Financial Activities, as subsequently amended (see the Financial Supervisory Authority's website,

Landsbankinn hf., Reg. No. 471008-0280, Austurstræti 11, 101 Reykjavík, Iceland.
Tel. +54 410-4000. E-mail address:, Website: Swift/BIC: NBIIISRE

2 Processing of personal data and Data Protection Policy

Landsbankinn processes personal data from customers in accordance with these Terms, special terms and conditions, rules referred to in these Terms, as well as Landsbankinn’s Data Protection Policy, published on the Bank’s website. Processing personal data is a premise for the Bank to provide customers with financial services and for customers to undertake transactions with the Bank, as well as to fulfil related contracts. The customer shall provide the Bank with information about his/her name, Id./Reg. No., legal domicile and, as the case may be, place of residence, other contact details, as well as other necessary information. In addition, the Bank receives necessary information about customers on a regular basis from Registers Iceland. Laws on measures against money laundering and terrorist financing obligate the Bank to gather certain information from customers. Legal entities are required to provide information, inter alia, about their Board of Directors, management and persons authorised to sign for the undertaking. Customers applying for credit or comparable services from the Bank grant the Bank authorisation to obtain their financial information from (a) a register of currently operating credit bureaus, e.g. CreditInfo Lánstraust, i.e. information from customer surveillance, credit scoring, a copy of registered obligations and comparable information, (b) from tax reports submitted to the Directorate of Internal Revenue and, as the case may be, (c) from the Register of Enterprises, i.e. a company’s registration records, articles of association and comparable information. Data processors working on behalf of the Bank may receive customers’ personal data to carry out transactions or other Bank services. The afore-mentioned also applies to guarantors. The same applies to customers’ spouses in the case of joint obligations. The Bank preserves the aforementioned data for the duration of a contractual relationship in accordance with Landsbankinn’s Data Protection Policy and its rules. Refusal by the customer to provide the Bank with personal data or authorisation to process such information may prevent the Bank from providing the customer with requested services.

Based on a contract with a customer, legal obligation, legal permission or customer consent, the Bank takes automatic decisions on services, inter alia based on customer profiles, as part of the business relationship. A customer profile is compiled from personal data the Bank has about the customer, including credit assessments, credit ratings and business history. Automatic decisions include the automatic extensions of overdraft authorisations based on a customer’s credit assessment. Customers can object to automatic decisions to the Bank.

Based on a contract with a customer, legal obligation, legal permission, pressing customer concern, pressing concern of another individual or other legitimate interests, the Bank utilises a customer’s personal data for business purposes to develop and/or advertise products, services or business solutions, as well as to ensure the quality of services provided, to maintain an overview of the customer's position and for liquidity management and/or risk management within the Bank. The Bank contacts a customer for those purposes through such media as email, telephone or messages to mobiles or via online banking or comparable communication channels.

The Bank processes necessary personal data from customers through the use of cookies on the Bank’s website and online banking as a security measure that analyses departures from usual customer behaviour. Further information about the Bank’s use of cookies is available on the Bank’s website. For security purposes, the Bank examines the technical infrastructure of customers’ online banking and connections to online banking, processes data about the device the customer uses each time, such as IP number and device type, as well as other aspects of the connection to the Bank for the purpose of carrying out business transactions. If a customer becomes aware of errors or defects during use, he/she must notify Landsbankinn without delay. Resolving errors may require the Bank to log on to a customer’s online banking space.

Landsbankinn's employees are bound by obligations of confidentiality in all matters concerning the situation of the Bank’s customers and other matters of which they may become aware in the course of employment and should be kept secret in accordance with legislation on financial undertakings. Notwithstanding legal duty of confidentiality towards third parties as regards customer affairs, the Bank is obliged by law to provide public authorities (i.e. regulators, customs, tax and law enforcement agencies) with such information. The confidentiality obligation of employees and parties to which such information is divulged remains even after employment ceases.

All processing of personal data is in accordance with current data protection legislation at each time. Landsbankinn’s Data Protection Policy contains a more detailed description of the processing and treatment of personal data carried out by the Bank, including the type of personal data processed and for what purpose, the retention time of personal data, transmission to third parties, the Bank's Data Protection Officer and the rights of individuals; that Policy applies in tandem with these Terms. The customer confirms that he/she has acquainted him-/herself with Landsbankinn’s Data Protection Policy.

3 General provisions on establishing a business relationship and on the business relationship

3.1 Establishing a business relationship

Customers establish a business relationship with the Bank on the Bank’s web, through online banking, the Bank’s application for smart devices (hereafter “the app”) or at a branch of the Bank. To establish a business relationship customers must provide proof of identity by producing valid personal identification issued by a public authority, i.e. a passport, Icelandic identity card, driver’s licence or a valid electronic ID. If a business relationship is established for a legal entity, all directors, the managing director and/or authorised signatories of the legal entity must verify their identity by presenting valid identification. When establishing a business relationship customers select products and/or services and obtain access to online banking. The Bank reviews the reliability of new customers by requesting information on their financial situation, cf. further discussion in the section on Measures to Combat Money Laundering and Terrorist Financing. Applications must satisfy the requirements for establishing a business relationship laid down in these Terms and, as the case may be, specific terms and conditions or rules which may apply to the respective goods and/or services. The customer shall confirm the respective application and/or terms and conditions as required by the Bank in each instance. The Bank may refuse an application to establish a business relationship, for instance, if the customer's information is insufficient, if an application does not meet the requirements for establishing a business relationship or for other objective reasons.

3.2 Actions to Combat Money Laundering and Terrorist Financing

The Bank’s operations are governed by the Act on Measures to Combat Money Laundering and Terrorist Financing, as subsequently amended, and the Bank is obliged to carry out due diligence on its customers, for instance, when establishing a business relationship, when new accounts are opened and/or with regard to individual transactions. In order to perform due diligence, the Bank requests, for example, personal information about a customer, such as name, Id. No., domicile, position, telephone number, email address, place of birth and citizenship, as well as financial information. Legal entities must provide information on their name, Reg. no., legal domicile, legal form, information about the Board of Directors, executive management and authorised signatories, as well as information on the legal entity's beneficial owners and persons authorised to oblige the legal person. The Bank also gathers information on whether transactions will be carried out on behalf of third parties and information on the nature and purpose of the proposed business relationship.

Before a business relationship is established, customers must also prove their identity by presenting valid personal identification issued or recognised by a government, such as a passport, driver's license, ID card issued by Registers Iceland or valid electronic identification. Legal entities prove their identity by providing certificates of incorporation from the Company Register of the Directorate of Internal Revenue or equivalent as proof of their registration. An assessment shall be made in each instance as to whether to request a copy of the undertaking's Articles of Association and/or audited annual financial statements. The legal entity’s directors, managing directors and authorised signatories must furthermore provide proof of identity in accordance with the above.

If the customer is not financially competent, the signature of a legal guardian may be necessary for certain transactions and contracts. The legal guardian must then present valid personal identification when transactions are concluded.

Under certain circumstances, where special caution is warranted, the Bank is required to apply enhanced due diligence. In such cases, the Bank reserves the right to request additional customer documentation. The Bank also exercises risk-based supervision of its business relationship with customers and may obtain updated information at any time during the contractual relationship. Should the Bank suspect that funds which the client intends to channel through the Bank's system are proceeds of unlawful conduct and/or linked to terrorist financing, the Bank reserves the right to suspend the requested transaction without notice. Should Landsbankinn have legitimate grounds or reason to consider certain transactions suspicious with regard to money laundering and/or terrorist financing, the Bank is obliged to report the transaction to the police and provide all necessary information in connection with such notification. The customer is obliged to inform the Bank of any changes to the information provided to the Bank in conducting due diligence.

3.3 A Framework Contract as defined by the Act on Payment Services

Provisions of these terms that fall within the scope of the Act on Payment Services (including provisions on online banking, payment accounts and debit cards) are considered to comprise a Framework Contract for Payment Services between the client and the Bank within the meaning of the Act. A payment account is an account which is used for the execution of payment transactions, cf. the Act on Payment Services.

3.4 Concluding agreements

The customer concludes binding agreements with the Bank and/or confirms his/her consent by signing a paper document, with an electronic signature or electronic approval, for example, in online banking or on the Bank's web, with request or approval by telephone, via an Internet communication application or other communication medium, depending on the nature of the commitment each time in accordance with the Bank's requirements. The customer furthermore confirms the Bank’s agreements, terms and/or rules for specific products and services, as they currently exist, by accepting or utilising the respective goods or services. If a customer is not financially competent, a legal guardian obliges the said individual with his/her signature. If a customer has granted a third party power of attorney, the signature of that authorised agent obliges the customer.

3.5 Authorisations of persons under the age of legal competence

A customer under the age of legal competence can establish a business relationship with the Bank with the approval of his/her legal guardian. However, a customer who will reach 13 years of age that year may open a payment account for deposit of own funds and/or gifts, have control over the account, receive a debit card for the account and have access to online banking without the consent of a legal guardian. Legal guardians are generally not authorised to make withdrawals from such customers’ accounts except with the customer’s consent. Withdrawals by legal guardians from the accounts of persons not legally competent are subject to the consent of both legal guardians, if they are two, unless each legal guardian has given the other power of attorney to exercise solely all authorisations pertaining to the account, including authorisations to make withdrawals from the customer's account. Once the account holder becomes financially competent by law at age 18 he/she becomes the sole custodian of his/her assets. Authorisations of legal guardians are then cancelled. Both the legal guardian and the person who is not financially competent may each obtain information about the accounts of the non-financially competent customer, including the balance and statements. Landsbankinn must be notified of any changes to the legal guardianship of a minor or changes to arrangements for a legal guardian. In addition to these Terms, the handling of funds of persons not financially competent and authorisations of customers not financially competent are governed by the Act on Financial Competence, No. 71/1997, as subsequently amended, as well as other rules of the Bank which may set terms and conditions other than those laid down in these Terms.

3.6 Power of Attorney

Power of attorney granted by customers to third parties to act on their behalf towards the Bank must be made in writing, dated and signed. Unless the Bank decides otherwise, the power of attorney shall also be (a) attested to by two witnesses, by a lawyer or a lawyer’s representative, a certified realtor or notary public; or (b) signed with valid electronic identification. The power of attorney must specify what actions it covers. The customer can authorise a third party to open an account in his/her name and/or manage his/her account in a specified manner. Such authorised agents must provide the same proof of identity as customers. Customers are fully responsible for an authorised agent’s actions based on power of attorney. Power of attorney must be granted in a format accepted by Landsbankinn. Should a power of attorney fail to meet the Bank's or legal demands for form and/or clarity, the Bank is authorised to reject any transactions based on it. All funds in an account opened at the request of a third party are considered to be owned by the customer once they have been deposited to the account. All notifications concerning the account shall be communicated to the customer. Should a customer object to the opening of an account, any funds deposited shall be returned to the person who applied to open the account or deposited funds in it. The customer is responsible for notifying the Bank of any changes in the power of attorney. All changes to a power of attorney shall be made in writing and witnessed in the same manner as the original and shall enter into effect upon receipt by the Bank. A power of attorney with an indefinite term is cancelled towards the Bank when revoked by the customer. Revocation of power of attorney must generally be made in writing and shall take effect upon receipt by the Bank. Only the customer can revoke power of attorney, unless otherwise provided for by law. Previously issued powers of attorney remain effective despite the registration of new powers of attorney unless these are specifically revoked. Even after a customer has revoked a power of attorney, the customer is responsible for payments made by the authorised agent until the customer has notified the Bank of revocation by verifiable means and this has been received by the Bank. The same applies to other transactions performed by the agent in the customer’s name. If an authorised agent has received a payment instrument for withdrawing funds from a payment account (e.g. a debit card), the account holder shall ensure that such payment instruments are returned to a local branch or destroyed once the power of attorney is revoked. Accounts held by an estate (of inheritance or insolvency) can only be accessed by a person duly authorised to manage the estate funds by a public authority. Laws and regulations on granting power of attorney, changing or revoking power of attorney apply in other respects.

3.7 Credit transactions and guarantees

When initiating a credit transaction the Bank may request that the customer provide security for prompt and full payment or request that a third party provide a guarantee for the borrower or provide collateral. In addition to these Terms, credit transactions are governed by Acts and Regulations, rules, the special terms and conditions which apply to the respective goods or services, the special terms and conditions of the debt instruments concerned and/or guarantees and the Bank’s rules, as applicable. The Bank reserves the right to refuse credit to customers.

3.8 Information disclosure

A customer will receive messages, information and notifications concerning transactions with the Bank sent to online banking or by other means of communication that the Bank uses at any time, unless otherwise provided for by law or the Bank elects to use mail services in special cases. The customer may furthermore request to have notifications mailed, for a fee, as appropriate. Fees for such services are listed in Landsbankinn's tariff, available on the Bank's website. The Bank may send customers push notifications through online banking. Customers can change the settings of push notifications in smart devices and on computer browsers. If a customer changes contact details, such as a phone number or e-mail address, he/she must update the information in the online banking settings, through the Customer Service Centre or at a branch.

3.9 Interest

Interest rates on deposits and loans are floating unless otherwise stated or agreed. Deposit and lending rates are determined and altered without prior notice in accordance with Landsbankinn’s current tariff. If an agreement with the Bank provides for a fixed interest rate or other special interest terms changes to interest rates shall be governed by the terms and conditions laid down in the agreement between the Bank and the customer. Information about the Bank's lending and deposit rates are available on the Bank's website, from its Customer Service Centre and branches. In calculating interest, each month shall be considered to have 30 days and each year to have 360 days, unless otherwise agreed. Deposits generally bear interest commencing on the day following the date of deposit. The day preceding withdrawal is the last day on which the withdrawn deposit generates interest. Special rules may apply to interest calculation on deposits and withdrawals carried out on weekends and public holidays. As a rule, interest on deposits is added to the principal at year-end and indexation is added on a monthly basis, except in the case of special savings accounts and vacation pay accounts. Interest appears on annual account statements available in online banking or other electronic format at the beginning of each year. Interest and indexation on outstanding debt is debited monthly unless otherwise agreed. If the account balance proves to be insufficient to cover withdrawals from payment accounts or withdrawals exceed an overdraft authorisation, penalty interest is calculated as determined by the Central Bank as of the date of withdrawal plus bank charges as per the Bank’s tariff. Lending rates vary depending on the type of loan. Unless otherwise agreed, interest is calculated on loans as of the disbursement date. A regular banking day is a day when banks are open in Iceland. If a due date, which is also the final date for payment, falls on a weekend or public holiday it shall be moved to the following banking day. If the due date and final date for payment on claims in collection by the Bank for a third party do not coincide, the final date for payment shall not be moved even though it falls on a weekend or public holiday.

In these Terms, special rules provide for interest on payment accounts in the section on payment accounts.

3.10 Foreign transactions

Landsbankinn shall bear no responsibility for possible mistakes or negligence resulting from its customer’s choice of foreign business partners and their reliability. The same applies to mistakes or negligence on behalf of foreign financial undertakings. Customers are advised to familiarise themselves with the terms and conditions of the respective foreign financial undertaking, as well as current legislation and business conventions of the country in question. Landsbankinn’s exchange rates apply to all foreign currency transactions, unless expressly agreed otherwise. The nature of the transaction determines what exchange rate applies and whether this is a spot rate, closing price or a special rate determined by the Bank. In transactions subject to exchange rate gains/losses all risk thereof shall be borne by the customer, unless otherwise expressly agreed.

In these Terms, special rules for payment accounts and foreign currency payments are laid down in the section on payment accounts.

3.11 Tariff

Customers pay charges for the Bank's products and services and other expenses incurred for services rendered in accordance with the Bank's current tariff. Should other terms and conditions or the Bank's agreements with the customer provide for charging of fees, those terms and conditions shall take precedence over the Bank's tariff. The Bank may debit fees and cost from the customer’s payment account with the Bank; such debits must appear on the customer's statement. Landsbankinn may change its tariff without prior notice. Landsbankinn’s tariff is available on the Bank’s website, Customers can also access tariff information in branches or from the Bank's Customer Service Centre.

4 Online banking

4.1 Online banking in general

Landsbankinn’s online banking (Netbanki) is an area on the Bank's web where customers log on with an authentication accepted by the Bank to conduct banking transactions. Online banking is available on the Bank's web, on the mobile web for individuals,, and on the web for mobile banking by companies, and using the app. In order for customers to take advantage of online banking services their equipment must be connected to the Internet. The Bank reserves the right to unilaterally determine the services offered in online banking, or to change the services. Online banking services may differ depending on whether a client logs on through the Bank’s website, mobile bank or using the app. Landsbankinn owns the software used in online banking. The customer has permission to access and use it. Customers are completely prohibited from altering or having alterations made to software connected with online banking. Customers use authentication to prove their identity in online banking. Customers identify themselves when logging on to online banking using personal security features, such as electronic ID or username and password, in accordance with the Bank's current security requirements. Landsbankinn reserves the right to amend its security requirements without prior notice. Once a customer has logged on to online banking with authentication, the customer is responsible for and is bound by all actions undertaken in online banking. Customers must take the necessary precautionary measures to keep secure their personal security features used for authentication purposes. Customers may not allow others to use their personal security features and should always make sure no one is observing them when using their personal security features. Customers shall keep their personal security features and all information relating to their online banking authentication secret and are responsible for ensuring that such information is neither divulged nor accessible to third parties. Failure by customers to preserve their personal security features securely or in accordance with the above is considered gross negligence on their part. Should a customer realise that an unauthorised person has gained knowledge of his/her personal security features, the customer must promptly report this to the Bank, and change the personal security features. To ensure security, customers must enable locking functions on devices used to log on to online banking. The Bank is not responsible for customers’ use of online banking through the app, on the Bank's website or in mobile banking. Nor is the Bank liable for any loss which may arise from the use of online banking. If a customer lends, sells or allows others to use a device where the app has been set up he/she is obliged to log out of the app. If the device has been modified in such a manner that its security has been compromised, for example, by installing unsafe applications, the use of the app on the device is not secure and is therefore prohibited.

Customers must notify the Bank without undue delay if they become aware of any abuse or unauthorised use of online banking. Customers shall not be liable for any loss resulting from the use of online banking if the Bank has not taken appropriate measures as provided for in the Act on Payment Services in connection with notification of a lost, stolen or misappropriated payment instrument. The Bank may, immediately and without notice, block the customer's access to online banking or restrict the customer’s use of online banking, in whole or in part, temporarily or permanently, in the following cases: a) if there is suspicion of unauthorised or fraudulent use of online banking or a breach of the Bank's rules or terms and conditions; (b) due to file updates, system changes or other technical or security reasons; or (c) if a customer's estate is subject to insolvency proceedings, if a customer seeks composition or a moratorium or for other similar reasons. Customers will be informed as promptly as practicable. If the reasons for the closure no longer apply, the Bank shall re-open access. The Bank may block customers’ access to online banking if their access has been inactive for a continuous period of 6 months or longer. Information on transactions, including the status of orders for transactions, may be temporarily inaccessible in online banking due to overload on the computer or transaction systems in question. Certain services or actions in online banking establish device location based on GPS co-ordinates, Internet systems, or telecom distribution networks, such as information on outlets. Access to such services can be managed in individual devices. The Bank does not retrieve location information from the device without the customer’s authorisation. The Bank is not responsible for claims that appear in the list of unpaid invoices where it is not the creditor. Customers with queries regarding such claims must contact the registered creditor.

4.2 Special provisions on corporate online banking

An application for corporate online banking approved by Landsbankinn, together with these Terms, comprises an agreement for corporate online banking. For the purpose of these Terms, corporates or undertakings shall mean legal entities. A user within the meaning of these special provisions on corporate online banking is considered to be any person designated by an undertaking as a user on an application for corporate online banking or on an application for access by a user to corporate online banking. The provisions of these Terms will apply to users as appropriate, as well as to contact persons and access managers of corporate online banking. Once a user has logged on to online banking with authentication, the undertaking is responsible for and is bound by all actions undertaken in online banking. The undertaking must notify Landsbankinn in writing on the forms provided for the purpose as to which employees are to have access to online banking and the extent of such access. The Board of Directors of the undertaking shall appoint a contact person to communicate with Landsbankinn regarding online banking. The Board of the undertaking may also appoint an access manager. The access manager has full and unlimited access to the undertaking's online banking. It implies the authority to determine which other employees of an undertaking have access authorisations to corporate online banking at any given time and how extensive access is granted to each. The contact person, access manager and users may not be on a bad credit register as the object of unsuccessful attachment or insolvent. The contact person, access manager and users who have authorisations exceeding viewing and batch entry must furthermore be legally and financially competent. The undertaking is responsible for ensuring that all users, of whatever type, meet these conditions. The undertaking’s contact person shall apply to Landsbankinn for authorisation for individual employees to use online banking. Before an employee is authorised to use online banking, he/she must visit a bank branch where he/she will be provided with access details and a security device as appropriate. Employees must also sign a declaration stating that they have acquainted themselves with these Terms and are aware of the responsibility resting with the undertaking pursuant to them. When an employee leaves employment, the undertaking must take immediate steps to close the employee’s access to online banking. The undertaking is responsible for notifying its local branch without delay if an employee who has access to online banking ceases employment, in order that the access can be terminated. Notice to terminate the access of individual employees must be made in writing or by other verifiable means. If an undertaking subsequently wishes to change service elements, a request for such a change must be received from the Board of Directors, managing director, CFO or contact person. The undertaking’s maximum authorised transfer amount each day shall be stated on the application for corporate online banking. A request to increase the undertaking's maximum authorised transfer amount must be received from the undertaking's Board of Directors or the person mandated by the undertaking to increase its maximum authorised transfer amount. The maximum authorised transfer amount for each user must be specified in the application for the user. Total withdrawals by users may not exceed the undertaking’s withdrawal limits.

4.3 Online connection in addition to corporate online banking, e.g. a web service or Application Programming Interface (API)

Undertakings may apply for an online connection between the undertaking and the Bank. An online connection is a special addition to corporate online banking for sending data between the Bank and the undertaking's accounting system. Once the Bank has approved an application for an online connection the undertaking is obliged to ensure the highest level of security regarding the users it authorises to use the connection. Furthermore, the undertaking is fully aware that access control is completely its responsibility. The undertaking's in-house or external service provider is responsible for the entire configuration of the online connection. The Bank bears no responsibility for the set-up. The undertaking shall be responsible for all actions carried out by its employees using the online connection. Furthermore, the undertaking shall be responsible for taking any measures it considers necessary to ensure the security of its banking information and all personal data, as well as the traceability of entries carried out through the online connection. The undertaking shall be liable for any damages suffered by the Bank or a third party as a result of use of the online connection by the undertaking and its employees. The same applies should unauthorised parties acquire information on accessing the system or gain access to it by other means. The Bank shall not be liable for any damage resulting from the incorrect functioning of equipment which is or should be provided by the undertaking, a service provider or partner of the Bank. The Bank shall not be liable for any damage suffered by the undertaking or a third party due to users’ misuse of their authorisations to carry out actions using the online connection. The Bank shall not be liable for direct or indirect damage which may be caused by the closure of an online connection without prior warning, for instance, due to necessary maintenance actions, malfunction of the Bank’s software or hardware, updating of files, system modifications, or other causes beyond its control. Undertakings using the online connection authorise the Bank to obtain information on its accounts payable from the Icelandic Banks’ Data Centre (RB) for use by other parties utilising the online connection. If the Bank considers there to be a risk that the undertaking may violate these Terms, or has cause to suspect that such has occurred, the Bank may terminate the undertaking's access to the online connection. The Bank shall notify the undertaking without undue delay that such closure has taken place. Access to the online connection may be terminated by either party with one month’s notice. The Bank's agreements with undertakings for B2B connections, which are in effect upon the entry into force of these Terms, shall remain in force. Upon the entry into force of these Terms access to the online connection provided by the Bank to undertakings will no longer be subject to the conclusion of a special written agreement between the Bank and the undertaking for such access.

5 Payment accounts

5.1 About payment accounts

A payment account is an account which is used for the execution of payment transactions, cf. the Act on Payment Services (hereafter “the account” unless otherwise expressly stated). In addition to these Terms and Condition, individual accounts may be subject to special conditions or rules of the Bank. Information about the terms and conditions of accounts is available on the Bank's website. Customers can apply to open an account on the web or in a bank branch. The Bank may reject an application to open an account, for instance, if the customer's information is insufficient, and will give notice of the rejection as soon as possible. Accounts may not be established on behalf of another financially competent party unless the customer has granted power of attorney to do so and there is no statutory prohibition against it. When opening an account, customers must prove their identity by presenting valid personal identification, i.e. a passport, identity card, driver’s license or valid electronic ID, with access authentication to online banking or other authentication in accordance with the Bank's current security requirements. Landsbankinn reserves the right to alter its security requirements without prior notice. If an account is opened on behalf of a legal entity all directors, the managing director and authorised signatories of the legal entity must verify their identity with valid personal identification. When opening an account, the applicant must provide information on intended transactions in accordance with the provisions of Act No. 64/2006, on Measures to Combat Money Laundering and Terrorist Financing, and on the beneficial owner of the funds.

Accounts are in Icelandic króna (ISK), unless otherwise expressly agreed. These Terms shall apply irrespective of whether an account is in ISK or foreign currency, taking into account specific provisions in these Terms on foreign currency accounts and payments.

Account balances are subject to specific rules and/or conditions that apply to each type of account individually. Accounts can be indexed based on the consumer price index or non-indexed. If the balance on an account is subject to restrictions, it may not be withdrawn unless the special conditions state otherwise. Withdrawals from an account shall not be subject to time restrictions unless provided for by law, regulations, rules or the terms and conditions of the account. The current rules of the Central Bank of Iceland on indexation of savings and loans shall apply to indexed accounts. The fixed term of vacation pay accounts is provided for in the Act on Vacation Pay.

5.2 Security numbers and access to accounts

A customer chooses a security number for an account to use for confirmation of payments in communication with Landsbankinn, for example, through online banking, telephone banking and the Bank’s Customer Service Centre. In selecting a security number, the customer shall take care not to select a number that can easily be traced back to him/her. The customer is obliged not to divulge the security number to unauthorised parties. Unauthorised parties here refers to parties who are not authorised to make payments from the customer's account in accordance with these Terms. If a customer has reason to believe that an unauthorised person has learned of the security number, the customer is obliged to notify this to the Bank immediately and to change the security number immediately upon becoming aware of this. The customer is responsible for all payments and actions linked to his/her account using the security number.

5.3 Payment service and payments

A deposit account can be linked to a payment instrument provided by Landsbankinn. For the purpose of these Terms a payment instrument refers to any personalised equipment and/or procedure agreed upon by the Bank and customer and utilised by the customer to issue payment orders, e.g. debit cards or electronic/digital means of payment. The terms and conditions of the relevant payment instrument further apply to its use.

When a customer issues orders to make payment from his/her account, he/she shall provide adequate proof of identity, by providing the account's security number, presenting personal identification or by other means in accordance with the Bank's requirements. The above applies whether or not the action is carried out by way of a payment instrument or not. Orders to make payments from accounts may be given orally at the Bank´s branches, with authentication by telephone, through online banking or by means of a payment instrument. If the Bank receives a payment order in writing, the client must confirm it by telephone or by electronic identification at the Bank’s request.

Instructions for payment sent before closing of a branch on a banking day shall be considered to have been received on that day. Instructions received after that time shall be considered to have been received on the next banking day. Payment instructions issued through corporate online banking before midnight shall be considered to have been received on that day, but may be carried out on the following banking day. Landsbankinn shall not be considered to have received payment instructions until the Bank has received all information necessary to carry out payment. Landsbankinn may refuse to carry out payment if there is doubt as to a person's right to access the account. The Bank can, furthermore, suspend the execution of specific payments for security reasons or if it sees a risk of misuse or fraud, or due to substantially increased risk of the payer being unable to fulfil the payment obligation. The Bank shall inform the payer of the suspension and the reasons for it as soon as possible, and no later than directly following the suspension. If the use of a payment instrument has been suspended, the Bank shall re-activate it for use or provide a new payment instrument once the reasons for suspension no longer apply.

Domestic payments in ISK should generally take no more than one banking day as of receipt of instructions for payment. Instructions for payment sent via mail may require up to two days from reception. As a rule, payments in foreign currency can take five banking days from receipt of instructions for payment until the receiving bank deposits payment into the payee’s account. Payments made in online banking before 21:00 hours (9:00 pm) each business day will be executed on the date received. Payments made after that time will be executed the following banking day. Payments made between 16:15 and 9:00 are also subject to rules of the Central Bank of Iceland on gross settlement limits.

Landsbankinn may refuse to carry out a customer's payment instructions if the customer fails to satisfy the requirements of these Terms, the requirements of specific terms and conditions or the Bank's rules, e.g. if there are insufficient funds in the customer's account or if withdrawals have been suspended for other reasons. The customer will be notified if the Bank refuses to execute instructions for payment. If the Bank's refusal to execute payment instructions is attributable to the customer, a fee may be charged for written notifications. If payment instructions are rejected by Landsbankinn, this is equivalent to such instructions not having been received. Notwithstanding the above, the Bank may postpone executing instructions for payment until sufficient funds are available on the customer's account, including funds to cover cost and other charges. In this connection, the Bank may attempt to debit payment from the customer's account for the next five banking days following reception of payment instructions. If the Bank receives multiple instructions for payment the same day, the Bank is not responsible for the order in which the instructions are executed or which payments are not carried out due to an insufficient account balance.

Payment instructions received in advance will be executed even if subsequent events would have prevented the requester from issuing them, e.g. due to the revocation of authority to sign or death of the customer. A customer can only revoke or suspend payment instructions if the conditions of the Act on Payment Services for such are met. Payment instructions received in advance will not be executed after an account has been closed. Landsbankinn is responsible for executing payment instructions in accordance with law until the payee’s bank has received the payment. After that time, the receiving bank is responsible to the payee for proper execution of the payment. The customer is responsible for ensuring that the payment instructions are correct. Landsbankinn is not responsible for the customer's mistakes, for example, if the customer enters incorrect identification for the payee. Such mistakes cannot be corrected unilaterally by the Bank without the consent of the payee. If a customer can provide evidence to show that the amount of a payment, authorised by the customer and initiated by the payee, was not specified precisely in the authorisation when issued, and that the payment from the customer's account was for a higher amount than he/she could reasonably expect based on the pattern of his/her expenditure, these Terms and other circumstances of the case, the customer shall notify Landsbankinn within eight weeks of the funds being debited from his/her account. These conditions being met, the Bank shall refund the customer such payment within 10 banking days of receiving notification from the customer. Otherwise the Bank will refuse repayment. The above does not apply when a customer, who is not a consumer as defined by the Act on Payment Services, as subsequently amended, gives oral consent to a third party to withdraw funds from his/her account.

The customer is not entitled to repayment once he/she has authorised Landsbankinn to carry out payment and, if appropriate, the Bank or the payee provided information about future payments or transmitted such information to the payer in a previously agreed upon manner at least four weeks prior to the due date. If payment instructions have been revoked, the Bank is not responsible for paying interest or other charges levied on overdue payments.

Payment services may be subject to restrictions under currently applicable provisions of the Foreign Exchange Act and rules based on the Act. If regular payments have been agreed upon, proportional regard shall be had for notice of termination in collection of payments following termination of an agreement. The Bank is authorised to charge a fee for payments from payment accounts. The Bank may also charge a fee for assistance granted in recovering mistakenly paid funds, e.g. due to payment instructions containing incorrect information about the payee. Charges shall be based on the Bank's current tariff.

5.4 Information about accounts and their use

The customer receives messages, information and notifications concerning accounts, such as changes in interest rates, cost, etc., through online banking unless the Bank elects to use mail in specific instances. The customer may furthermore request to have notifications mailed, for which a fee is charged. The fee for such services is shown in the tariff.

5.5 Accounts and payments in foreign currency and reference exchange rate

Payments between accounts in different currencies constitute foreign exchange trading. The Bank uses a reference rate, its general rate, as a basis for calculation of foreign exchange transactions. The Bank publishes information on its general rate on the Bank's website. For purchase and sale of bank notes in bank branches and ATMs the Bank uses its note rate as reference exchange rate. The Bank may also use a special exchange rate as reference rate for calculation in specific transactions. The special rate is then quoted for the transaction in question. Changes in exchange rates are based on bids and offers on the interbank FX market or on currency exchange rates plus a premium. The Bank furthermore uses a special rate in calculating the settlement of foreign credit card entries in ISK, information on which is also published on the Bank's web. The exchange rate for calculating foreign credit card payments is based on the exchange rates quoted by the respective payment card company plus a premium. Changes to exchange rates based on changes in the reference rate pursuant to these Terms will take effect immediately and without warning. The customer may enjoy currency gains or suffer currency losses based on exchange rate movements of the currencies in question.

Foreign currency accounts and payments are governed by the Foreign Currency Act and rules of the Central Bank of Iceland on foreign exchange. The customer is responsible for ensuring that all documentation and information, in whatever format, provided to the Bank in connection with foreign exchange transactions or cross-border capital movements, is accurate and genuine, and is responsible for its authenticity.

5.6 Interest rates and interest rate calculation

Floating interest rates apply to accounts unless otherwise agreed and are determined by the bank’s interest rate tariff for the respective type of account. The interest rate tariff is available on the Bank's website. Changes to the tariff are announced on the Bank's website, through online banking or in another manner. Interest rate decisions are, inter alia, based on the Central Bank's policy rate decisions and changes to other rate references, such as LIBOR. Interest rate decisions are also based on the Bank's other financing terms, public levies, operating costs, the Consumer Price Index for indexation, etc. Interest rate decisions are based on changes to one or more of the factors listed above. Interest rate changes that are based on changes to the Central Bank's policy rates or other reference rates, such as LIBOR, enter into effect immediately and without warning when changes are made to Landsbankinn's interest rate tariff. The same applies to interest rate changes the Bank deems beneficial to the customer. Other interest rate changes enter into effect two months after notification. When special deposit interest rates have been negotiated, changes in interest rates are determined by the relevant agreement between the customer and the Bank. Notwithstanding the above, all interest rate changes on accounts of customers who are not consumers within the meaning of the Payment Services Act, as subsequently amended, shall apply without notice when changes are made to the interest rate tariff.

Deposits bear interest as of the day of deposit and until the day of withdrawal (the days of deposit and withdrawal are non-interest bearing) unless otherwise agreed. The last day included in interest calculations is the date prior to withdrawal. Interest is added to the principal at the end of each year or when an account is closed. Interest added to the balance on term deposits at year-end may be subject to restrictions in the same manner as other deposits. As a general rule, interest is calculated for 360 days per annum (the interest year). Each month carries an interest term of 30 days. The beginning of each term depends on the account type and the current terms and conditions for the account. For inflation-indexed accounts, indexation is calculated at the end of each month based on the Consumer Price Index for indexation and is in general added to the principal at the end of each month. Special indexation is flexible and based on the published interest rate tariff at each time in accordance with the rules of the Central Bank of Iceland on the Price Indexation of Savings and Loans. Special indexation is calculated within a month for all deposits and withdrawals. Special indexation is calculated for each day from the date of deposit or disbursal of a loan as 1/30 of the change in indexation between months for each day until the end of that month and added or subtracted from the deposited or disbursed amount. Financial income tax is levied on paid interest, indexation and currency gains in accordance with law and debited from the account.

5.7 Loan interest, Non-Sufficient Funds (NSF) withdrawals, unauthorised overdraft and wrong or unauthorised payments

The customer is obliged to monitor the balance on his/her account and may not withdraw from the account an amount that is in excess of its balance or authorised overdraft. The customer obliges him-/herself to pay the interest and cost associated with overdrafts in accordance with Landsbankinn's current tariff and interest rates unless otherwise agreed. Interest is calculated on drawn overdraft authorisation at the end of each day and calculated from the beginning and until the end of each month. Interest on outstanding debt is debited monthly unless otherwise agreed. The same applies to other costs associated with overdraft authorisations. If the customer overdraws his/her account or exceeds the approved overdraft authorisation (e.g. with an NSF debit card transaction) or the overdraft authorisation is cancelled, the customer shall pay a fee for NSF withdrawals according to Landsbankinn's current tariff. The fee for NSF withdrawals is charged on each withdrawal. An unauthorised overdraft becomes due on the day it is created and bears penalty interest from the transaction date (i.e. the day the payment is registered in Landsbankinn's systems) until the date of payment. If a customer deposits funds to his/her account after having made NSF withdrawals or exceeded overdraft authorisations, the Bank reserves the right to first utilise those funds to discharge penalty interest, then to pay the cost of unauthorised overdraft, including collection and legal fees, and finally to cover debt arising from excess overdrafts. If the arrears on an account are not settled the Bank reserves the right to foreclose the debt without prior notice or termination, and to seek to enforce its claim through legal collection. The Bank may entrust third parties with the collection of the claim on its behalf. Fees for interim collection are in accordance with the Bank's current tariff or that of the respective external collection agent, while fees for legal collection are in accordance with the tariff of the respective collection agent.

5.8 Account entries and statements

Statements of all transactions made on accounts (account statements) are accessible through online banking. Annual statements are published in electronic format in online banking. A customer who does not have access to online banking may request to have an annual statement sent by mail. The customer shall review his/her account statements regularly. Any queries the customer may have regarding an account statement should be made in writing and signed and sent to Landsbankinn within 30 days of the date of the payment in question or within 20 days of receiving an account statement. If the customer is a legal entity, queries must be made within 30 days of the date of the payment. If no queries are received the account statement is considered to be accurate.

Landsbankinn is obliged to refund amounts which the Bank has verifiably wrongly withdrawn from its customers’ accounts. The customer authorises the Bank to reverse and/or correct entries which have been mistakenly or because of a system error credited to the client's account. Such corrections shall take place without undue delay and appear on the customer’s account statement.

The customer must carefully review all information prior to making payment to a third party account, regardless of whether such payment is made with a payment instrument, through online banking, via telephone, with a teller or using other means. The customer is responsible for the accuracy of details on the amount of payment, recipient of payment and explanation for payment.

In the case of unauthorised or erroneous payments through no fault of the customer, the customer has not provided wrong details for the payee and the erroneous payment cannot be traced to circumstances outside the Bank’s control (force majeure) or legal requirements the Bank is obliged to comply with, the Bank shall repay the customer the unauthorised or erroneous payment and, if appropriate, reverse transactions on the customer’s account so the balance is the same it would have been if the unauthorized or erroneous payment had not taken place. The customer shall lodge claims for corrections without undue delay if he/she becomes aware of or should have become aware of an unauthorised or erroneous payment and no later than 13 months after the date of debit. This does not apply, however, if the customer can show that the Bank failed to fulfil provisions of these Terms concerning the customer's access to account statements. The above does not apply to customers who are not consumers as defined by Act No. 120/2011, on Payment Services, as subsequently amended.

5.9 Closing accounts

If a customer wishes to close his/her account, in part or in full, a request to this effect may be made to the Bank in writing, by telephone or by e-mail. Any fees or costs owed the Bank by the customer for services rendered may be debited from the customer's account prior to its closure.

The Bank reserves the right to close an account, in part or in full, on its own initiative if this agreement is terminated or if a customer is discovered to be violating the Bank's rules, its Terms or other rules governing the customer’s transactions with the Bank, or if the customer or a third party is found to have misused the account. In such cases, the Bank may close the account without first notifying the customer. The customer will be notified of the closing of the account as promptly as possible. Furthermore, the Bank reserves the right to close an account if it has been inactive for 5 years or longer, following notification sent to the customer to this effect. Any balance on an account closed on the Bank's initiative shall be deposited to another account in the customer's name. If the customer owns no other account, the balance shall be deposited to an account with the Bank. If there is a negative balance upon closure, e.g. due to fees charged, the Bank reserves the right to enforce the claim through legal collection.

6 Debit card

6.1 About debit cards

A debit card (“debit card” or “the card”) is a payment instrument in the form of a personalised plastic card with a microchip and magnetic stripe, a payment card number or a token that is linked to a particular payment account of an account holder and is issued by the Bank. The card can be used to pay for goods and services, to withdraw cash or for other purposes which conform to the provisions of these Terms. The card is the Bank’s property. In using the card, the card holder is obliged to comply with these Terms as well as other currently applicable rules governing the use of debit cards. An account holder may be issued multiple cards for his/her payment account. In authorising the issuance of a card for the payment account to a card holder other than the account holder, the account holder gives that card holder the right to oblige the account holder and use the card in accordance with these Terms. The payment account will be debited for payments or withdrawals made by a card holder using a card or its number or through other lawful means authorised pursuant to these Terms. The account holder pays the cost of issuing and using a card in accordance with the Bank's tariff. The account holder also pays the cost of card usage which may be charged by other service providers, including ATM providers for cash withdrawals.

The card holder is the person to whom a card is issued. A card holder may be the account holder or a person whom the account holder has authorised to have a card. The card holder may also be an individual who holds a company card. An account holder who is the legal guardian of an individual who is not financially competent may apply for a card on behalf of the non-competent individual, in which case the account holder bears sole responsibility for all use by and transactions of the non-competent individual.

Authentication is the method used by a card holder to prove his/her identity with personal security features when confirming the execution of a payment or withdrawal using a card in accordance with these Terms. Authentication involves the entering of personal security features, such as a PIN or other security code for authentication. Authentication can also involve the use of other methods of identification, all in accordance with the Bank's security requirements at any given time. Landsbankinn reserves the right to alter its security requirements without prior notice. A PIN is a secret number allocated to the card holder when the card is issued.

Personal cards are issued to individuals. Corporate payment cards are issued to individuals who operate businesses as sole proprietors or to legal entities, such as associations, enterprises and institutions. The legal entity is then the account holder and is responsible for all use, payments and withdrawals of the card holder.

6.2 Application for and issue of debit cards

The customer applies for a card in a bank branch, by telephone or by electronic means, e.g. through online banking. The Bank reserves the right to refuse debit card applications. A card is issued in the card holder's name. The card holder will be allocated a PIN in tandem with the issuance of the card to be used to confirm execution of payments or withdrawals. The card holder has access to the PIN in online banking. The card holder can also have the PIN sent as an SMS to the card holder’s telephone number on file with the Bank. If a card holder wishes to have the PIN delivered by mail, he/she bears responsibility for this delivery and must pay the mailing cost according to Landsbankinn's tariff. If the card holder does not receive the PIN within a reasonable time frame, the Bank must be notified. The card holder can change the card's PIN at a bank branch.

The Bank decides on the period of validity of the card, which is registered on the card. The card is valid until the final day of the month specified on the card. The card holder will receive a new card prior to the end of the validity period unless otherwise requested in the application. If the card holder or the account holder does not wish to renew the card, one of them shall notify the Bank thereof in writing at the latest one month before the end of the validity period. When a card is issued or renewed, the card is sent to the card holder’s legal domicile or registered residence and the customer charged according to the tariff. If the card holder does not receive the card within a reasonable time frame, he/she shall notify the Bank without delay. A card holder may not use the card after it has expired or been cancelled or invalidated by other means. Misuse of the card is subject to legal sanction.

A card holder can pay for goods and services from those merchants and service providers who accept cards. The card holder may also use the card to withdraw cash at those commercial banks, savings banks, ATMs, and other outlets offering card holders such services. The card holder is entitled to receive a copy of the sales note, with the seller preserving another copy. Transaction entries are sent electronically from the seller for settlement by Landsbankinn.

Use of a card may be limited to a maximum amount, e.g. for ATM withdrawals and POS payment or by the Bank’s rules. The card holder is obliged not to use the card in excess of the balance on deposit or authorisations for the payment account. Failure to do so may lead to criminal liability by law and costs in accordance with the tariff. Landsbankinn reserves the right to refuse payment authorisations and lock a card if there are grounds to suspect unauthorised or fraudulent use of the card. The card holder will be notified of the locking without delay. If these suspicions prove to be unfounded, the card will be re-authorised for use. The card holder shall use the PIN to confirm payments and withdrawals from an account using the card unless these Terms provide otherwise, e.g. for contactless payments or payments on the Internet. Execution of a payment or purchase comprises the card holder’s consent for purchase for goods or services. If the card holder has entered the wrong PIN three times in a row, the Bank may lock the card, close it or revoke it.

The Bank reserves the right to refuse a payment or withdrawal, for example, due to the following reasons: (a) a card has been reported lost or stolen; (b) the payment account has been blocked or closed; (c) the card has been locked; (d) the amount of the payment (as the case may be including cost) exceeds the balance or overdraft authorisation of the account; (e) incorrect personal security features, e.g. an incorrect PIN, have been used; (f) the period of validity of the card has expired; or (g) other reason provided for by law, the Terms or the Bank’s rules.

6.3 Liability and preservation

The card holder is responsible for preserving the card, PIN and other personal security features to prevent a third party from acquiring the card, PIN or other information on the card. The card holder may not provide the card, PIN or other information on the card, such as the card number or security code, to a third party and must keep the information fully secure. The card holder may not keep the PIN together with the card, in a wallet or telephone, on the Internet or other electronic device or by other means that may be accessible to third parties. The card holder may not reproduce the card or change its functionality. If the card holder fails to preserve the card, PIN or other personal security features in a secure manner or in accordance with the above, it is considered gross negligence. The card holder shall at all times take care to ensure that no one is observing when entering the PIN or other personal security features. The card holder or account holder cannot revoke payments or withdrawals carried out by card holder using the card. Card payments and withdrawals using the card are recorded on the statement for the payment account to which the card is linked. The statement includes information about the seller's name, where the card was used, the date, amount and cost. In addition, in the case of foreign transactions, information is also given on the amount in the currency in which the purchase was made.

The card holder is responsible for payments or withdrawals if he/she has verified their execution by signing a sale ticket or entering a PIN, by entering card details in the intended spaces when purchasing goods or services online, by prior authorisation to the merchant, with a contactless payment or by approving the execution of a payment or withdrawal by other means in accordance with the Bank's currently applicable rules. The card holder must personally execute the payment or withdrawal and enter the PIN or, as the case may be, other personal security feature. If the card holder has not preserved the card, PIN or other personal security features in accordance with these Terms he/she will be liable for all payments and withdrawals carried out using the card. The Bank assumes that all payments and withdrawals using the card have been carried out by the card holder and in accordance with the account holder's wishes until otherwise demonstrated. If the card holder is not the account holder, the account holder and the card holder are fully responsible for the use of the card and any payments or withdrawals carried out using the card.

The card holder is liable for an own-risk deductible for unauthorised payments amounting to the equivalent of EUR 150, based on the current reference exchange rate, if the unauthorised payments can be attributed to the card holder losing a debit card or if the card has been stolen or misused in any other illegitimate manner before its loss or misuse was reported and such use can be traced to non-compliance by the card holder with obligations pursuant to provisions of these Terms. In determining the amount of the deductible, consideration is given to the manner in which the card holder preserved the card and PIN or other personal security features and the circumstances under which the card was lost or used illegitimately. If it is proven that a card has been fraudulently used without the card holder's knowledge without involving gross negligence or fraud on the card holder's part, the card holder shall not be liable for losses in excess of the deductible. If it is proven that a person other than the card holder has fraudulently carried out contactless payments or other forms of payment or withdrawals without confirmation by PIN or other personal security features, the card holder shall not be liable for the loss arising from such payment, provided that the card holder is not guilty of fraudulent conduct. The card holder is not responsible for usage of a card after he/she has verifiably reported it as missing, unless he/she has acted in a fraudulent or grossly negligent manner. The card holder is responsible for all losses resulting from unsanctioned payments if he/she enters into them in a fraudulent manner or if the card holder fails to fulfil the obligations laid down in these Terms deliberately or through gross negligence. If the card holder is a legal entity or sole proprietor, the card holder shall bear all losses caused by unsanctioned payments if the card holder has failed to fulfil obligations pursuant to these Terms.

The Bank shall not be liable for losses incurred by the card holder due to technical failure of ATMs or other terminal equipment nor for losses suffered by the card holder if terminal equipment fails to contact Landsbankinn's authorisation system. If a card holder is of the opinion that he/she has suffered such a loss, the card holder shall submit a written complaint to Landsbankinn. The Bank forwards such complaints from card holders to the acquirer. The Bank is completely unconnected with and bears no responsibility whatever in any dispute or loss in connection with the purchase of goods or services paid for with the card.

6.4 Loss, blocking and revocation of cards

If a card is lost or the card holder suspects that the card has been used fraudulently, the card holder or account owner must notify this immediately to the Bank during banking hours or using the payment card company's emergency telephone line outside banking hours. Immediately following such notification, the card will be blocked either temporarily or permanently to prevent further use or misuse thereof. The card holder shall assist the payment card company and Landsbankinn in dealing with the situation to seek to minimise losses as far as possible. The recipient of the notification will keep track of and register all lost card notifications. Landsbankinn may require the card holder to submit a written declaration stating that a card has been lost and to sign a request for a new card. If a card holder loses his/her card while abroad, he/she can get an emergency replacement card or cash through the intermediation of the payment card company. The cost of this service as provided for in the current tariff will be debited from the account holder’s bank account. If a card holder subsequently finds a card which has been reported as lost, he/she may not use this card. Landsbankinn must be notified that the card has been found and the card returned to the Bank. Should a card holder request that a card be activated once more he/she is responsible for all use of the card while it was lost. A request for reactivating the card must be made in writing or, as the case may be, confirmed with the allocated security code.

The card holder and account holder can block a card at any time. If the card holder wishes to terminate the card or revoke his/her application, the card holder must send the Bank written notification to this effect. The Bank may, immediately and without prior notice, block or restrict the use of the card by the card holder, temporarily or permanently, or recall it immediately, if it suspects abuse or a breach by the card holder of the rules and Terms that apply to the card. If a card is revoked, the card holder shall return it without delay to the next Landsbankinn branch. If the card holder fails to return the card, the Bank can demand appropriation of the card. The same applies if the card holder defaults. The Bank keeps a register of blocked and revoked cards and provides that information to sales and service providers. If a sales or service provider requests that a card holder hand over a blocked or recalled card, the card holder shall deliver the card to the sales or service provider.

7 Final Provisions

The Bank and the customer may at any time terminate their business relationship without prior notice, unless otherwise provided for by law, an agreement, these Terms, the Bank’s rules or the nature of the case. The Bank may terminate a Framework Contract pursuant to these Terms by giving two months’ notice. If the customer wishes to terminate his/her business relationship with the Bank, or revoke consent for the processing of personal data, the customer must send the Bank a written notification to this effect.

If only a telecommunications method is used for approving these Terms, they are considered to be a distance contract, as defined by Act No. 33/2005, on Distance Marketing of Financial Services. If the customer is a consumer, he/she is entitled, subject to the restrictions set forth in the Act on Distance Marketing of Financial Services, to withdraw from the Terms if they are considered to be a distance contract as defined in that Act without giving any reason, provided the customer sends a notification to this effect by verifiable means to the Bank within a period of 14 days from the date of acceptance of the Terms.

The customer may refer any dispute with the Bank to the Complaints Committee on Transactions with Financial Undertakings provided the dispute falls under the Committee's purview. The Complaints Committee is hosted by the Icelandic Financial Supervisory Authority, Any dispute which may arise concerning transactions with Landsbankinn shall be governed by Icelandic law, unless otherwise agreed. Any dispute which may arise as a result of a breach of these Terms may be brought before the District Court of Reykjavík.

The Bank is not responsible for any direct or indirect loss which a customer may incur in connection with these Terms or transactions concluded on their basis if such loss can be attributed to events resulting from legislative requirements, government actions or force majeure, such as natural catastrophes, wars, terrorist activity, strikes, border closures, electricity disruption or failure, disruption of a settlement system, telephone system or other communication routes, or other similar events. Nor shall Landsbankinn be responsible for any inconvenience, expense, missed investment opportunities or other direct or indirect financial loss resulting from the closure, failure, interruption or other disturbance of the Bank’s activities.

These Terms are issued in Icelandic. The Icelandic version of the Terms is the only authentic version, regardless of whether the Bank publishes a translation of the Terms in languages other than Icelandic.

These Terms replace the following terms and conditions which are cancelled upon their entry into force: General Terms of Landsbankinn hf. No. 1500, General Terms and Conditions for the Opening and Use of Deposit Accounts No. 1529, Terms and Conditions of Landsbankinn hf. for Debit Cards No. 1526, Terms and Conditions for Personal Online Banking No. 1512 and Terms and Conditions for Corporate Online Banking No. 1511.

These Terms shall apply from 12 August 2018. These Terms shall apply, however, from 12 June 2018 for new customers who accept or confirm the terms on or after that date.

Landsbankinn's General Terms and Conditions (PDF)