NAB Foreign Currency Account - Onshore

Terms and Conditions
effective 25 July 2007

CONTENTS

Terms and conditions

How the account will work

Interest

Statements

Bank fees

Goods and Services Tax

Government charges and taxes

Exclusion of liability

Disclosure of Information

General Matters

Code of Banking Practice

Changes NAB may make

How will I be notified of changes?

Joint accounts

How is the operation of the account governed?

Responsibility

Significant Taxation Implications

Reference to Product Disclosure Statement (PDS) in Ancillary Documents

What do I do if I have a problem or dispute relating to my account?

How can I get more information?

Meaning of words

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Terms and Conditions

1 NAB Foreign Currency Account - Onshore

How the account will work

1.1 Unless you have an approved overdraft limit, you must deposit at least Five Thousand United States Dollars (USD 5,000) to open a NAB Foreign Currency Account ('the account') in United States Dollars. Accounts may be opened in other foreign currencies acceptable to NAB with the equivalent of Five Thousand United States Dollars (USD 5,000). Unless you have an approved overdraft limit, a minimum monthly balance of Twenty Thousand United States Dollars (USD 20,000) or the currency equivalent is required to avoid account service fees, referred to in clause 1.12.

You may find out from any branch of NAB the equivalent amount in any other foreign currency and the currencies acceptable to NAB from time to time. NAB will make any necessary conversions, as mentioned above, from United States Dollars to the currency of the account at a rate of exchange which is calculated by NAB using a rate of exchange set by NAB at six monthly intervals on the 15th (where this is not a Banking Day, then the preceding Banking Day) of February and August to be applied from the first business day of March and September, respectively, for the following six monthly period.

The account will be kept in the foreign currency you choose when you open it and this currency will be the currency of account.

1.2 You may deposit funds to the credit of the account, or withdraw funds in the currency of account up to the Transaction Balance, or your approved overdraft limit, up to the time on any Banking Day nominated by NAB from time to time for the currency of account. You may find out that time from any branch of NAB. If a cheque is deposited into the account, the proceeds in respect of that cheque will be available for withdrawal on the Value Date, not the Transaction Date.

1.3 You may withdraw from the account at any of NAB's branches, subject to:

1. you providing suitable identification; and
2. any disruption to or delay in the banking system or international currency markets.

NAB will pay you the balance of the account and any interest on that account in the currency of the account, unless otherwise instructed by you or unless the currency of the account is no longer available. If the currency of the account is no longer available, then NAB may nominate the currency with which to pay you the balance of the account and interest on the account.

1.4 Transactions on the account will have a Transaction Date and may have a Value Date that is different from the Transaction Date. The Value Date for transactions debited or credited to the account may be determined by any number of factors, including for example the method of payment, time zone differences between when the transaction is initiated and when it is received overseas, and the time to clear a cheque. The debit and credit balances on which interest is payable on the account will be calculated by reference to the Value Date and not the Transaction Date.

1.5 You may obtain Account Information over the telephone by following the Procedures. Information about the Procedures is available from any branch of NAB upon request.

1.6 You must establish and maintain security measures adequate to protect the Procedures from unauthorised use or access. You must keep the Procedures secret and not make any written record of them. You must instruct all persons you have authorised to use the Procedures to do so. You also authorise NAB to disclose Account Information over the telephone to you and to any other person who follows the Procedures. NAB need not enquire about the identity of the person and is entitled to assume that they are you or have been authorised by you to obtain the Account Information over the telephone provided they have followed the Procedures. To the maximum extent permitted at law, NAB excludes all liability for any loss or damage you suffer or incur as a result of NAB providing the Account Information over the telephone to a person who has followed the Procedures.

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Interest

1.7 Subject to clause 1.8, NAB will pay you interest for each Interest Period calculated on the portion of the daily credit balance which is over the minimum deposit of Five Thousand United States Dollars (USD 5,000) or the currency equivalent. NAB will calculate the interest up to the last day of each Interest Period. NAB will credit that interest to the account on the last Banking Day of the relevant Interest Period with a Value Date of the first day of the next Interest Period. If any transaction is debited or credited to the account for value after the last Banking Day of that Interest Period but before the end of that same Interest Period, NAB will make an interest adjustment on the last Banking Day of the next Interest Period. For the purposes of this clause 1.7 the currency equivalent to United States Dollars is calculated by NAB using a rate of exchange set by NAB at six monthly intervals on the 15th (where this is not a Banking Day, then the preceding Banking Day) of February and August to be applied from the first business day of March and September, respectively, for the following six monthly period.

1.8 The interest rate is that applicable to the currency of the account as notified to you at the time you open your account in NAB's flyer 'Indicator Rates - For Foreign Currency Account' and that flyer forms part of these terms and conditions. The applicable interest rate will fluctuate. For some currencies, the applicable credit interest rate is zero. The interest rate applying at any time is available on NAB's website at www.nab.com.au. Up-to-date rates are also available by contacting your local branch, or by phoning the International Service Centre Help Desk. The Help Desk phone number is recorded on your account statement.

1.9 Interest on the account will be calculated:

1. for those days on which NAB is able to invest the funds in the account in the currency of the account;
2. at the variable market rate applicable to the currency from time to time; and
3. based on a year of 360 days for all currencies, except for the following currencies, for which the relevant year will be based on 365 days:
   1. Fiji dollar (FJD);
   2. Pounds sterling (GBP);
   3. Hong Kong dollar (HKD).

1.10 If the account is overdrawn without an approved overdraft limit, you must put the account in credit within 7 days and you will pay NAB interest on the amount overdrawn at the default rate charged by NAB applicable to the currency from time to time. The default rate is set out in NAB's flyer 'Indicator Rates - For Foreign Currency Accounts'. NAB will calculate interest on the daily debit balance of the account. NAB will calculate the interest up to the last day of each Interest Period. NAB will debit that interest to the account on the last Banking Day of the relevant Interest Period with a Value Date of the first day of the next Interest Period. If any transaction is debited or credited to the account for value after the last Banking Day of that Interest Period but before the end of that same Interest Period, NAB will make an interest adjustment on the last Banking Day of the next Interest Period.

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Statements

1.11 NAB will send you statements of the account at least 6 monthly unless you request otherwise.

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Bank fees

1.12 You will pay NAB's standard account service fees, the nature and amount of which are detailed in NAB's brochure 'International Trade Services - a guide to Fees and Charges' available from NAB at any time, and NAB may debit the account with those fees unless otherwise agreed.

1.13 NAB will make any necessary conversion of such fees from Australian dollars to the currency of account at a rate of exchange which is set on a six monthly basis.

1.14 NAB may:

1. vary the amount, frequency or time for payment of any fees or charges relating to the
2. vary these terms and conditions by introducing a new fee or charge relating to the account.

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Goods and Services Tax

1.15 Where NAB is liable to pay Goods and Services Tax (GST) or any similar tax on a supply made in connection with this product/service, then you agree to pay an additional amount equal to the consideration payable for the supply multiplied by the prevailing GST rate.

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Government charges and taxes

1.16 NAB may debit the account with government fees, duties and taxes (including any Pay as You Go Withholding Tax) relating to the account after converting them from Australian Dollars to the currency of account.

1.17 NAB will make any necessary conversion of such fees, duties and taxes from Australian Dollars to the currency of account at the relevant spot rate of exchange quoted by NAB generally on the day on which the conversion is effected.

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Exclusion of liability

1.18 You agree that in connection with NAB's provision of services to you (including, without limitation, the making or receiving of a payment on your behalf) (Services), one or more of NAB's branches and other financial services providers (Other Banks) may be involved. Those branches and Other Banks may in each case be local or overseas and the Other Banks may or may not be appointed by NAB. You agree that, to the maximum extent permitted by applicable law, the involvement of those branches or Other Banks in connection with the Services is entirely at your risk and that NAB is not liable for loss of any kind arising in connection with the involvement of any branch or Other Bank or their acts or omissions, whether or not the Other Bank is appointed by NAB.

1.19 Any Service NAB provides to you may be affected directly or indirectly by:

1. laws including, without limitation, any subordinate instrument; and
2. the acts, practices and policies of local or foreign governments and their instrumentalities (Regulatory Authority) whether or not having the force of law, and with which it is the custom or practice of a reasonable and prudent banker to comply, (Regulations).

1.20 Regulations may be those of any place where NAB or any Other Bank operates, or with which the Services have some direct or indirect connection, or to which or from which a payment or instruction is made or received or in which some other thing is done, or may be the Regulations of or applicable to the currency of any payment. Regulations include, but are not limited to, those which affect, restrict, prohibit or otherwise render unlawful transactions, payments or dealings with assets, any person, group or entity which may or may not include those having a connection with certain countries, areas, individuals, groups, bodies, entities, materials, items, substances, political or religious systems, beliefs or convictions. The Services may be interrupted, prevented, delayed or otherwise adversely affected, either in whole or in part, by reason of a Regulation including, but not limited to, where NAB considers in good faith, or any Other Bank considers, or a Regulatory Authority asserts, that a Regulation does apply (each an Adverse Effect). It is entirely your risk if any Adverse Effect occurs. NAB may, but has no obligation to, contest any act of any Regulatory Authority.

1.21 To the maximum extent permitted by applicable law, NAB is not, and any Other Banks are not, liable for any loss of any kind arising directly or indirectly from or in connection with any Service including, without limitation, any Adverse Effect, whether or not NAB, or any Other Bank, is negligent or in breach of any duty to you or to any other person.

1.22 To the maximum extent permitted by applicable law, NAB's liability for loss of any kind which cannot be excluded by reason of applicable law is limited to the cost of having the Services supplied again.

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Disclosure of information

1.23 You agree that NAB may use or disclose any information about the Customer or Services or any person connected in any way with the Services to any Other Bank or Regulatory Authority for any purpose which NAB, or any Other Bank, considers necessary or appropriate in connection with any Regulation or the Services. You agree to provide any such information to NAB if NAB asks you to, and promptly to procure the consent of any such person to the disclosure of that information if NAB so requires.

1.24 The National Australia Bank Limited (an Australian company) and each of its subsidiaries and related or associated entities (National Group) is managed, operates businesses and processes customer information internationally and across corporate entities.

Accordingly, information about or relating to you may be provided to other National Group companies, transmitted within the National Group between countries, and where required by law, regulation or convention, provided to governmental and regulatory authorities, both in the country where the relationship with the National Australia Bank Limited company is primarily situated, and in other countries where the National Group may operate and you irrevocably consent to that occurring.

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General matters

Code of Banking Practice

1. information on NAB's current interest rates and standard fees and charges relating to this product if any;
2. general descriptive information concerning NAB's banking services including:
   1. for accounts with cheque access, general descriptive information about cheques;
   2. account opening procedures;
   3. NAB's obligations regarding the confidentiality of your information;
   4. complaint handling procedures;
   5. bank cheques;
   6. the advisability of you informing NAB promptly when you are in financial difficulty;
   7. the advisability of you reading the terms and conditions applying to each banking service NAB provides to you;
3. general descriptive information about:
   1. the identification requirements of the Financial Transactions Reports Act 1988;
   2. the options available to you under the tax file number legislation; and
4. a copy of the Code of Banking Practice.

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Changes NAB may make

2.2 In addition to the other changes NAB may make to these terms and conditions which are detailed in these terms and conditions, NAB may change any other terms and conditions (including by imposing new fees or charges, changing the amount, type, or method of calculation of fees and charges payable).

NAB will make any changes in accordance with any applicable legislation and industry codes. If the account is not used for a period, the length of which is dependent upon the amount of money in the account, the crediting of interest and issue of statements to you will end and access will be restricted or the account will be closed and the balance transferred to the Commonwealth Government. NAB will notify you at your last known address at least 30 days before any such variation takes effect.

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How will I be notified of changes?

2.3 Unless otherwise specified in these terms and conditions or separately agreed between you and NAB, NAB will give you notice of changes as set out below and you agree to receiving notice in such ways:

• notice of changes to fees and charges will be given in writing at least 30 days before the change takes effect;
• notice of changes to government fees and charges will be given by media advertisement, in writing or electronically as soon as practicable after, but no later than 3 months after, the change takes effect; and
• notice of any other changes to these terms and conditions (including changes relating to interest other than changes to an interest rate) will be given in writing at least 30 days before the change takes effect.

As interest rates for NAB Foreign Currency Accounts may vary from time to time in accordance with the changing market conditions of the country of currency, NAB reserves the right to vary the rate without giving prior notice to you. Up-to-date interest rates are available by contacting your local branch, by phoning the International Service Centre Help Desk or visiting us at www.nab.com.au. The Help Desk phone number is recorded on your account statement.

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Joint accounts

2.4 If there are two or more of you, you will be treated as holding the account jointly and NAB may accept for credit to the account any telegraphic transfer, cheque, payment order or bill of exchange that is payable to all of them.

2.5 If any of you die, the account will be treated as the account of the survivor or survivors jointly.

2.6 Unless any of you request otherwise, NAB statements and notices (including notification of any variation to these terms and conditions) will be forwarded to the mailing address of the first of you named in the account. You will all be deemed to have received any NAB statements and notices forwarded in accordance with these terms and conditions.

2.7 A joint account holder may only make a withdrawal on the terms of any authority to operate on the account. If NAB is notified of a dispute between joint account holders, NAB may require all joint account holders to sign any authority to operate the account.

2.8 The liability of account holders under an account held in joint names is joint and several. This means each and all of the account holders are liable for the whole of any debit balance on the account.

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How is the operation of the account governed?

2.9 Operation on the account will be governed by the signing authority which you may have already provided to NAB or will need to provide when you open the account. The signing authority specifies who is authorised to operate the account and whether they may do so alone or jointly.

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Responsibility

2.10 You acknowledge that:

1. you are aware of the currency risk (including the potential for sharp movements in the value of the Australian Dollar relative to any other currency) and the interest rate risks that are inherent with the account, and you, and not NAB, are responsible for the prudent management of the account in relation to those risks;
2. you are aware of the services available to a person such as you to guard against those risks;
3. you have relied solely on your own independent assessment or advice from a third party (other than NAB); and
4. NAB is not responsible to you for any fluctuation in the interest rate or the relative value of the Australian Dollar against any other currency, or any loss or liability you may incur as a result of such a fluctuation.

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Significant Taxation Implications

2.11 Interest earned on your NAB Foreign Currency Account - Onshore may form part of your assessable income. There may also be income tax implications related to any gains or losses upon conversion into and out of foreign currency.

If you do not provide your Tax File Number (TFN), Australian Business Number (ABN), or advise that you are eligible for an exemption from providing a TFN or ABN, NAB may be obliged to deduct Pay as You Go Withholding Tax at the maximum marginal tax rate (plus Medicare levy) from any interest income you earn on your NAB Foreign Currency Account. If you are a non-resident of Australia, NAB may also be obliged to deduct Pay as You Go Withholding Tax.

NAB recommends that you seek independent tax advice in respect of the tax consequences arising from the use of this account.

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Reference to Product Disclosure Statement (PDS) in Ancillary Documents

2.12 Where the context so requires, a reference to a Product Disclosure Statement or a PDS for NAB Foreign Currency Account - Onshore in any brochure, letter, application form or other document issued by NAB shall be construed as a reference to these Terms and Conditions.

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What do I do if I have a problem or dispute relating to my account?

2.13 For information about resolving problems or disputes, contact NAB on 1800 152 015, or ask at any branch of NAB. If you subsequently feel that an issue has not been resolved to your satisfaction, you may be able to raise your concerns with the Banking Ombudsman if you are an individual or small business customer covered by the Banking and Financial Services Ombudsman scheme.

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How can I get more information?

2.14 You can get more information about the NAB Foreign Currency Account - Onshore and banking with NAB by contacting NAB on 13 10 12 or visit NAB at www.nab.com.auor from any branch, or by contacting your Business Relationship Manager. Information on current interest rates and standard fees and charges is also available on request. Up-to-date rates are available from any branch, or by phoning the International Service Centre Help Desk or visiting NAB at www.nab.com.au. The Help Desk phone number is recorded on your account statement.

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Meaning of words

2.15 Account Information means balance, transaction and other information provided by NAB in respect of the account.

Banking Day means a day other than a Saturday or Sunday, or a day gazetted as a public holiday in every state and territory of Australia, or a holiday in the country of currency

Interest Period means the quarterly periods ending on 31 March, 30 June, 30 September and 31 December, or any other period agreed between you and NAB.

NAB means National Australia Bank Limited and its successors and assigns.

Procedures means the procedures established by NAB to authorise access to the Account Information in respect of the account as advised by NAB to you.

Transaction Balance means the balance of the account determined by reference to the Transaction Date of the transactions to that account.

Transaction Date means the date upon which a transaction is posted to the account. The Transaction Date may differ from the Value Date.

You means the customer or customers who open the account, and if there is more than one, you means each of them separately and every two or more of them jointly. You includes your successors and assigns and, in relation to your rights to operate the account, any other authorised signatory to the account.

Value Balance means the balance of the account determined by reference to the Value Date of transaction on that account.

Value Date means the date on which a transaction is deemed to be debited or credited to the account for the purposes of calculating interest or determining whether an Account Service Fee is payable. The Value Date may differ from the Transaction Date.

For more information call 13 10 12
8am - 8pm EST, Monday to Friday or visit us at nab.com.au
Hearing impaired customers with telephone typewriters can contact us on 13 36 77

©2007 National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 62663A0507