An overdraft is provided when the need is short term or, in the case of a continuing overdraft, where a pattern of fluctuation into and out of credit is likely. The borrowing may be renegotiated between the customer and the Bank. The facility is repayable on demand. Unless repayment has been demanded in the meantime or there has been any change of circumstances warranting an earlier review, the facility will be reviewed at the date shown in the Letter of Offer without any obligation on the part of the Bank to continue it after such date.
This current Account must operate within its authorised limit and sufficient cleared funds should be in the account prior to issuing cheques. Cheques/debits presented that would cause the account to be overdrawn over the agreed limit may be returned unpaid without reference.
The interest rate, which is subject to variation during the period of lending, is determined by reference to the borrower’s category and term, purpose and security for the advance. Interest is calculated on the daily balance outstanding after adjustment is made for cheques in course of collection, and is charged to accounts at the relevant Bank charge dates.
4. INTEREST SURCHARGES
1. The facility must operate within an authorised credit limit. Where overdrafts occur without prior authorisation, or are not repaid when demanded, or in the event of excesses over the authorised credit limit amounts, such unauthorised overdrafts or excesses or unpaid amounts are subject to an additional interest charge at the rate of 0.75% per month or part of a month (i.e. 9% per annum) subject to a minimum charge of EUR2.54 per month in addition to the relevant interest charge to accrue both before and after any judgment, as appropriate. Any such additional interest charge will apply to the amount and for the period of such unauthorised overdrafts or excesses and will apply to unpaid amounts from the period when due until payment and shall be charged to the Customer’s accounts and payable at the same time, in the same manner as the relevant interest charge, currently quarterly. The above-mentioned rate or minimum amount may at any time and from time to time be changed by the Bank at its absolute discretion, subject to prior approval of the relevant regulatory authority. Additionally, where excesses occur, the Bank may, at its discretion alter the amount which is subject to an additional interest charge. In the event of any such change or alteration occurring during the continuance of the Facility, the Bank will give the Customer a minimum of one month’s prior notice that such change or alteration is to take place. Any such additional interest charge is intended to constitute liquidated damages to the Bank including compensation for its increased administrative and related general costs occasioned by such unauthorised overdrafts or excesses occurring on the part of the Customer or non payment when due. Notice under this clause may be given by the Bank to the Customer by any means the Bank considers reasonable.
2. A basic requirement is that an overdraft must revert to credit for at least 30 days in all, whether consecutively or otherwise, during the 12 month period from either the date of sanction or from the date of any subsequent new permission, if granted, and for any subsequent twelve month period. Where an overdraft fails to meet the above requirement the interest rate is revised and a higher rate will be charged once for that 12 month period retrospectively. The higher rate will consist of the then applicable interest rate plus 0.5% per annum of the average full overdraft balance which is applied at the following quarters interest posting. The above mentioned rate may at any time and from time to time be changed by the Bank at its absolute discretion subject to prior approval of the relevant regulatory authority.
Any security held now or at any future time shall be security for all liabilities. All legal charges and other costs associated with the completion of the Bank’s security requirements are the borrower’s responsibility and will be debited to the borrower’s account as they arise.
6. JOINT BORROWING
Where any advance is granted to two or more persons the liability to the Bank shall be joint and several.
7. REFERRAL ITEM FEE
If any cheques/debits are paid which cause a debit balance above the agreed limit on the account, a referral item fee will apply to each cheque/debit, as set out in the then current edition of the Bank of Ireland’s Schedule of Fees and Charges Brochure for Business Customers, a copy of which is available on request.
8. IMPLIED LIMIT
Where the Bank pays a cheque/debit that results in an overdrawn balance in excess of the authorised overdraft amount sanctioned, this increase in the overdraft amount will not be deemed by the Bank as a permanent or ongoing facility and any implied limit is withdrawn once the account reverts within its authorised facility.
The customer(s) consent(s) irrevocably to any future transfer of the debt or loan on the account(s) and any security held therefore as apart of a loan transfer and securitisation scheme and to the disclosure of any information relating to the account(s) and any security held therefore to any transferee, assignee or any party in connection with such scheme.
The Bank is authorised by the customer(s) to disclose information relating to the account(s) or any security held in relation to the account(s) to any person acting as agent or to other third parties engaged by the Bank in connection with the account(s).