NAB Investment Cash Manager

Product Disclosure Statement

including terms and conditions
effective 7 August 2007

Contents

Product Disclosure Statement
NAB Investment Cash Manager - Overview

Part A General information

Features and benefits

Risks

Worked example of interest calculation

Significant taxation implications

Labour, environmental, social or ethical standards

How can I get more information?

What do I do if I have a dispute?

Are commissions payable to staff members of NAB?

Updating information

Meaning of words

Part B Terms and Conditions

1 NAB Investment Cash Manager

2 NAB Offset Arrangements

3 Payment Facilities

4 General Matters

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Product Disclosure Statement

This document forms part of the Product Disclosure Statement (PDS) for the NAB Investment Cash Manager along with:

• A Guide to Fees and Charges - Personal Banking Fees; and
• the Indicator Rate Sheet for NAB’s Deposit Products.

If you have not already received copies of each of these documents, please contact NAB by:

• Calling 13 BANK (13 22 65)
• Visiting nab.com.au

This PDS sets out important information about the NAB Investment Cash Manager. By using this PDS you will be able to understand the benefits and risks associated with this product, and understand other significant characteristics and features applicable to the product.

Make sure you read this PDS thoroughly before making a decision to acquire a NAB Investment Cash Manager.

Any advice in this PDS has been prepared without taking account of your objectives, financial situation or needs. Before acting on any advice in this PDS, NAB recommends that you consider whether it is appropriate for your circumstances.

The NAB Investment Cash Manager is issued by National Australia Bank Limited ABN 12 004 044 937 (NAB).

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NAB Investment Cash Manager - Overview

* Product Disclosure Statements for these products and services are available from NAB.
^® Registered to BPAY Ltd ABN 69 079 137 518

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Part A

General information

Features and benefits
The NAB Investment Cash Manager is an at-call, cashflow management account for investors, that offers a range of features. The NAB Investment Cash Manager - overview at the start of this PDS provides an overview of the product features and benefits. Information about each feature and benefit of this account can be found in Part B of this PDS in the terms and conditions applying to the account, along with the terms and conditions for the NAB 100% Offset, cheques and direct debits.

Accessing your account
There is a range of ways for you to access the NAB Investment Cash Manager, including:

• cheques, direct debits and periodical transfers; and
• electronic access channels such as telephone banking and internet banking.

For some access methods (such as the establishment of a periodical transfer linked to your account) you will need to enter into a separate agreement with NAB.

Electronic access options
You may link your account to any card issued by NAB that is acceptable to NAB for this purpose. Linking your account to your NAB card allows you to access the account through NAB ATMs and non-NAB ATMs¹, or by using EFTPOS². Linking your account to telephone banking, internet banking or similar services provided by NAB allows you to access a range of transactions and/or services electronically.

Before making any decisions around electronic access options, NAB recommends that you consider the applicable PDS or other disclosure document, available from NAB. These may include telephone banking, internet banking or NAB’s card-based electronic banking facilities. These facilities are issued by National Australia Bank Limited ABN 12 004 044 937.

1 NAB Ant™ American Express^® Credit Cards have access only to selected non-NAB ATMs Australia wide. Refer to nab.com.au or call 13 13 12.
2 Linked NAB accounts cannot be accessed via EFTPOS using NAB Ant™ American Express Cards.
™ Ant is a Trade Mark of National Australia Bank Limited ABN 12 004 044 937.
^® Registered Trade Mark of American Express Company.

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Risks
There are several aspects to operating the account detailed in this PDS that may involve some risks, including those detailed below.

1. Overdrawing your Account
NAB may allow your NAB Investment Cash Manager to become overdrawn. If your account is overdrawn without an approved overdraft limit (or beyond the amount of any approved overdraft limit), you may be liable for default interest on the amount overdrawn.

You may incur a Reference and/or Dishonour Fee if you overdraw the NAB Investment Cash Manager without an approved overdraft limit (or beyond the amount of any approved overdraft limit). Further information on fees payable when the NAB Investment Cash Manager is overdrawn is set out in Part B of this PDS.

2. Cheque Access
Where an account has cheque access, there is a risk that unauthorised transactions may occur if a cheque is stolen, forged or fraudulently altered or drawn (including because it is poorly drafted).

In some circumstances, NAB may dishonour a cheque (such as if there are not enough available funds in your account).

Further information on unauthorised transactions and dishonouring cheques is available in Part B of this PDS.

3. Direct Debits
If you give a person an authority to directly debit amounts from your account, there is a risk that the person will continue to debit amounts from your account after you instruct them to cancel the direct debit.

If you have more than one direct debit arrangement with a person and you request NAB to stop one arrangement, this will automatically stop all debits from your account by that debit user.

In some circumstances, NAB may dishonour a direct debit. Further information on direct debits is available in Part B of this PDS.

4. Joint Accounts
If you hold an account jointly with another person, each of you will be liable for the whole of any debit balance on the account. For further information on joint accounts, refer to Part B of this PDS.

5. Limitations on Liability and Indemnities
In some circumstances, NAB’s liability in relation to cheques and direct debits may be limited or you may lose your rights to make a claim against NAB. Also, for some circumstances you indemnify NAB against all liability that NAB may have in respect of certain cheque or direct debit transactions. Further information on limitations of liability and indemnities is available in Part B of this PDS.

6. Payment of Interest
The interest rate payable on a NAB Investment Cash Manager is subject to change. Further information on change of interest rates is available in Part B of this PDS.

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Worked example of interest calculation

A worked example of the calculation of interest under clauses 1.11, 1.12 and 1.13 of Part B of this PDS for this account which earns a tiered rate of interest, based on the following assumptions:

• For an account balance of $60,000
• For a period of one month between 1 April and 30 April (inclusive) during which no additional deposits or withdrawals are made
• The interest rate applying to account balances in the tier $50,000 - $100,000 for 12 months is 5.25% per annum.

Based on the above assumptions, you would earn $258.90 in interest for the period 1 April to 30 April (inclusive). See calculation below:

1. Divide the interest rate by 365 to calculate the daily interest rate. 0.0525 ÷ 365 (5.25%p.a. ÷ 365)
   = 0.000143836 (0.0143836%)
2. This daily interest rate is then multiplied by $60,000 to calculate the interest that accrues each day. 0.000143836 x $60,000 (0.0143836% x $60,000)
   = $8.6301366
3. Multiply the daily interest earned by the number of days in the period to calculate the interest that will be earned. $8.6301366 x 30 = $258.90 (rounded to two decimal places)

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Significant taxation implications
Interest earned on a NAB Investment Cash Manager may form part of your assessable income.

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 the Medicare levy) from any interest income you earn on your NAB Investment Cash Manager. If you are a non-resident of Australia, NAB may also be obliged to deduct Pay as You Go Withholding Tax.

Additional taxation implications may arise if your NAB Investment Cash Manager is linked to a loan account through an offset arrangement (see Part B of this PDS for the terms governing NAB 100% Offset).

NAB recommends that you seek independent tax advice.

Labour, environmental, social or ethical standards
NAB does not take labour, environmental, social or ethical standards into account for the purpose of selecting, retaining or realising any investment relating to the NAB Investment Cash Manager.

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How can I get more information?
You can obtain more information about:

• NAB Investment Cash Manager;
• current interest rates;
• standard fees and charges; or
• banking with NAB,

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What do I do if I have a problem or dispute relating to my account?
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 and Financial Services Ombudsman if you are an individual or small business customer covered by the Banking and Financial Services Ombudsman Scheme.

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Are commissions payable on these products to staff members of NAB?
Staff members are salaried employees of National Australia Bank Limited and do not receive any proportion of any fees or commissions paid to NAB in connection with the product detailed in this PDS.

Staff members may be entitled to receive additional monetary or non-monetary benefits and/or rewards resulting from participation in programs conducted by NAB. Monetary benefits or rewards may include an annual bonus the level of which may depend on the overall performance of the NAB group of companies. Non-monetary benefits or rewards for staff members and their partners may include gift vouchers, film tickets, restaurant meals, attendance at an annual conference or other functions.

Whether staff members receive any such benefits and rewards depend on a number of performance related factors including the level of remuneration generated for NAB from sales of products as a consequence of the staff member’s advice.

It is not possible to determine at any given time whether a staff member will receive such benefits or rewards or to quantify them. They are generally not directly attributable to any particular product that the staff member has given advice on.

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Updating information
Information in Part A of this PDS that is not materially adverse information may change from time to time, and may be out of date at the time this PDS is given to you. Information in Part A of this PDS may be updated by making a notice containing the updated information available through:

• contacting NAB on 13 BANK (13 22 65)
• visiting nab.com.au
• visiting any branch.

After the product is issued you will be notified of any material change to, or significant event affecting, the information in this PDS. Changes to terms and conditions will be notified as set out in Part B of this PDS.

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Part B

Terms and Conditions

Section 1

NAB Investment Cash Manager

How will the account work?
1.1 You must deposit at least $10,000 to open a NAB Investment Cash Manager (‘the account’). The account balance may fall below $10,000 later, but no interest will be earned on any daily balances below $10,000. You may make further deposits of any size to the account.

1.2 There is no minimum account balance that must be maintained.

1.3 You may withdraw up to the available credit funds from the account, or if the account has an overdraft facility, up to the approved overdraft limit. The proceeds of any cheque or other item deposited in the account will not be available until the cheque or other item is cleared.

You may withdraw from the account at any of NAB’s branches, subject to you providing suitable identification.

1.4 NAB will, upon request, provide a cheque book to access funds from the NAB Investment Cash Manager.

1.5 You may open a NAB Investment Cash Manager in your name or jointly with another individual.

1.6 You may deposit salary, dividend distributions, managed fund distributions, rental income and other regular deposits directly to the NAB Investment Cash Manager by direct credit or periodic transfer from another NAB or non-NAB account.

1.7 You may arrange for regular deposits to be made from your NAB Investment Cash Manager by setting up a periodic transfer instruction through NAB Telephone Banking or NAB Internet Banking, or by visiting your nearest branch. Periodic transfers will be governed by NAB’s standard terms and conditions relating to the service.

1.8 You may use your NAB Investment Cash Manager:

1. as the ‘nominated account’ for transactions in connection with the NAB Online Trading (NOLT) facility; and
2. as an account in conjunction with the NAB Margin Lending facility (including for funds transfers and payment of margin calls).

1.9 If you specifically apply for, and NAB agrees to give you an overdraft facility with the account, the overdraft facility will be subject to NAB’s standard terms and conditions for the facility which will be provided to you at the time. Additionally, NAB may also at its discretion allow you to overdraw the account:

• if you do not have an approved overdraft limit, to any amount permitted by NAB from time to time; or
• if you do have an approved overdraft limit, to any amount permitted by NAB from time to time, beyond the amount of that limit.

In both these situations, you may be charged default interest and a Reference Fee and/or a Dishonour Fee in accordance with 1.17.

NAB does not accept applications for an overdraft facility where you hold the NAB Investment Cash Manager as trustee or as the manager of your personal superannuation fund.

1.10 If the account is overdrawn without an approved overdraft limit (or beyond the amount of any approved overdraft limit), you must put the account in credit (or within the amount of the limit) within 7 days and you will pay NAB interest on the amount overdrawn at the default rate charged by NAB for personal accounts from time to time. Contact NAB for the default rate or refer to NAB’s flyer ‘Indicator Rates - Deposit Products’. You will be notified of any change to the default rate. The interest is calculated on the daily debit balance of the account as at the end of each day and will be charged to the account on the last banking day of each month. You may also incur a Reference Fee and/or a Dishonour Fee, the amount and nature of which are detailed in this PDS and available from NAB at any time.

What interest will I receive/pay?
1.11 Subject to 1.14, NAB will pay interest calculated on the daily credit balance of the account as at the end of each day, if it is $10,000 or more, up to and including the day before the last banking day of each month (or, if there is a further banking day in another State or Territory because it does not have a holiday, the day before this further banking day) and will credit the interest to the account the next banking day.

1.12 Interest earned on a NAB Investment Cash Manager will be credited to that account. Interest cannot be credited to any other account.

1.13 Different rates may apply to different levels of account balance. Those rates will also fluctuate. The applicable rate applies to the whole of the credit balance. Those levels of account balance and the rates applicable to them are as notified to you at the time you open your account on NAB’s flyer ‘Indicator Rates - Deposit Products’. You will be notified of any change to the rates and applicable account balances. For information about current rates, call 13 BANK (13 22 65), or visit nab.com.au or your nearest branch.

1.14 If the account is part of a NAB 100% Offset, the terms and conditions of the NAB 100% Offset from time to time will apply. Further details may be found in Section 2 of this PDS.

When will I receive statements?
1.15 NAB will send you account statements quarterly, unless you request or agree otherwise. Where you request to receive a repeat or an additional statement, a statement fee may be charged. Refer to 1.17 for details of this fee.

What bank fees are applicable to this account?
1.16 The following fees are payable to NAB in connection with the NAB Investment Cash Manager.

Minimum monthly balance below $10,000
If the minimum monthly balance of the account falls below $10,000 at any time during a month, NAB may debit the account with an account service fee of $10. The account service fee is payable on the last banking day of the month and debited on the first banking day of the next month.

Internet/Telephone transactions
Nil fees apply for electronic transactions which include transactions to/from your account conducted via NAB Internet Banking (including bill payment BPAY^®) and NAB Telephone Banking (including bill payment BPAY^®). Some electronic transactions will attract a separate fee, such as certain payments from your account made under a Periodical Payment Authority. Refer to Sections 2 to 7 of ‘A Guide to Fees & Charges – Personal Banking Fees’ for details of service and sundry fees that may be payable.

First 10 most expensive items each month
Each month, the first 10 most expensive transactions items do not incur any transaction fees. Transaction items include transactions you make through either a NAB ATM (including each deposit and withdrawal made at a NAB ATM, and each item lodged with a deposit slip via a NAB ATM), EFTPOS, cheque deposits or personal cheques,or over-the-counter transactions.

Transaction fees will apply to each additional item in accordance with the table below and the conditions and exceptions in ‘A Guide to Fees and Charges - Personal Banking Fees’.

1 NAB ATM card linked to NAB Investment Cash Manager is required to make deposits and withdrawals.
2 If cash is withdrawn during an EFTPOS transaction/purchase, the transaction is deemed a withdrawal and the Branch Withdrawal Australia Post fee may apply.
3 The transaction listing will include up to the last 10 (ten) unstatemented transactions made on that account.
4 To and from an eligible NAB Transaction account only. Refer to section 2 to 7 of 'A Guide to Fees and Charges - Personal Banking Fees'.

Other Fees
1.17 The following fees are payable to NAB in conjunction with the NAB Investment Cash Manager. These fees do not form part of the ‘First 10 most expensive items each month’, and are always charged separately. Other fees may be payable under ‘A Guide to Fees and Charges – Personal Banking Fees’ (that forms part of this PDS).

To the extent of any inconsistency between ‘A Guide to Fees and Charges - Personal Banking Fees’ and this ‘Other Fees’ section of this clause, this section ‘Other Fees’ prevails.

1 Non-NAB ATM fee is $2.00 per withdrawal or account enquiry from 1 August 2007.

Statement of account
The following fees and charges are payable whenever you make the relevant request in relation to a statement of the NAB Investment Cash Manager.

Transaction verification
The following fees and charges are payable whenever you make the relevant request in relation to verifying transactions on the NAB Investment Cash Manager.

Dishonoured Items
The following fees and charges are payable whenever you conduct a transaction in relation to a NAB Investment Cash Manager that is dishonoured.

1 Including NAB home loans, but excluding any NAB Flexiplus Mortgage facility, NAB Home Equity Line of Credit facility, Personal/Residential Investment Fixed Rate Interest Only Loan (no longer for sale), Bridging Loan and Consumer Instalment Loan.

Stop payment requests

The following fees and charges are payable whenever you make a request to stop a payment in relation to a NAB Investment Cash Manager.

Stop Payment request until 6 September 2007

^{1 Cheques reported stolen are exempt from this fee if a copy of the police report is provided}

Reference fee

Bank cheques

Special clearance of cheques

This fee is payable whenever NAB arranges for the special clearance of a cheque at your request.

NAB Rebate Arrangement and fee exemptions
1.18 ‘A Guide to Fees and Charges - Personal Banking Fees’ in this PDS describes the NAB Rebate arrangement and fee exemptions which may apply to certain NAB transaction and savings products. The NAB Investment Cash Manager:

• is not an account which forms part of the NAB Rebate arrangement
• is not an account which will be taken into account when assessing the Relationship (Footings). (This means the account balance in the NAB Investment Cash Manager is not included in the combined balance of $35,000 or more that must be held in a single or joint personal account(s) to qualify for the applicable fee exemptions).

What electronic access options are available?
1.19 You may arrange to link your NAB Investment Cash Manager to any card issued by NAB that is acceptable to NAB for this purpose. Linking your account to your NAB card allows you to access the account through NAB ATMs and non-NAB ATMs or by using EFTPOS. Such access will be governed by the Conditions of Use for Electronic Banking (card based).

You may arrange to access the account through a telephone banking, internet banking or similar service provided by NAB; such access will be governed by NAB’s standard terms and conditions relating to the service.

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Section 2

NAB Offset Arrangements

Am I eligible and if so how do I apply?
2.1 You may apply to NAB to participate in NAB 100% Offset. NAB may accept or reject your application at its discretion. NAB may also offer certain other offset arrangements at its discretion from time to time and the terms and conditions of these offset arrangements will be provided to you.

2.2 NAB 100% Offset is only available on certain deposit and loan accounts specified by NAB from time to time, details of which can be obtained from NAB. However, at any one time, only one loan and one deposit account can be linked to NAB 100% Offset. For the NAB 100% Offset, a variable interest rate must apply to the loan account.

2.3 NAB 100% Offset may not link a loan account with a deposit account that includes a name or names other than the name(s) in which the loan account is held.

2.4 While you have NAB 100% Offset, the following relevant terms override the provisions relating to the calculation and payment of interest applying to:

1. any linked deposit account, except in respect of any linked deposit account while it has a debit balance; and
2. your linked loan account, except if the credit contract relating to the linked loan account contains specific provisions relating to the calculation and payment of interest while you have NAB 100% Offset. If the exception applies, then those specific provisions, in addition to others, apply in respect of your linked loan account while you have NAB 100% Offset.

How will NAB 100% Offset change my deposit account?
2.5 While you have NAB 100% Offset, any linked deposit account will not earn any interest even if the credit balance of that account exceeds - or if there is more than one linked deposit account, the total credit balances of those accounts exceed - the unpaid balance of your linked loan account.

2.6 If you wish to vary NAB 100% Offset in any way or you wish to change from NAB 100% Offset to another offset arrangement offered by NAB, you must make a fresh application to NAB to participate.

2.7 You or NAB may end NAB 100% Offset by giving 7 days’ notice to the other. However, if you default under your linked loan account, NAB may end NAB 100% Offset immediately by giving you a notice to this effect.

2.8 It is your responsibility to monitor the credit balance of the linked deposit account, or if there is more than one linked loan account, the total credit balance of these accounts, as against the unpaid balance of your linked loan account to achieve the best results for you under NAB 100% Offset.

How will NAB 100% Offset change my loan account?
2.9 The daily interest charges which would otherwise be payable on a day under your linked loan account will be calculated by deducting the credit balance of the linked deposit account from the unpaid balance of your linked loan account at the end of the day and then applying the daily rate (being the annual percentage rate divided by 365) to the result.

2.10 If the credit balance of the linked deposit account exceeds the unpaid balance of your linked loan account at the end of a day, no interest will be charged under the loan for that day.

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Section 3

Payment Facilities

Cheques
NAB provides cheque access to the NAB Investment Cash Manager on request. If you have cheque access to an account, the following terms and conditions apply.

3.1 General Provisions

1. Each cheque must be completed properly and with due care so as to avoid fraudulent alteration and in accordance with the signing authority you give NAB.
2. If you have any cause whatsoever to suspect that a cheque drawn on your account has been forged or fraudulently altered in any way or has been drawn in whole or in part without authority from you, you must notify NAB immediately on 13 BANK (13 22 65).
3. You must take reasonable care and precautions to prevent unauthorised, stolen, forged or fraudulently altered or drawn cheques being presented to NAB.
4. You must keep cheque forms issued to you in a safe place and you must notify NAB immediately on 13 BANK (13 22 65) if they are lost, stolen or misused. If you do not, then subject to any applicable law, you do not have any right to make a claim against NAB in respect of such a matter (for example, a forged cheque).
5. When a cheque is drawn on your account by any person, it will, when the cheque is handed to NAB:
   (i) be deemed to be a request by you to NAB to withdraw funds from your account for the amount shown on the cheque; and
   (ii) constitute an authority to pay those funds to the payee, endorsee, holder, bearer, depositor or presenter of the cheque or that person’s bank.
6. If there are not enough ‘cleared funds’ or available credit in your account when the cheque is presented for payment, NAB may dishonour or pay the cheque at its discretion. This may result in your account being overdrawn or exceeding an approved overdraft limit. You may also incur default interest, a Reference Fee and/or a Dishonour Fee, the amount and nature of which are detailed in this PDS and available from NAB at any time. Any such fees are payable in addition to the monthly account service fee; refer 1.16 and 1.17.
7. You authorise NAB to pay a cheque drawn on your account notwithstanding that it is a stale cheque within the meaning of the Cheques Act 1986.
8. You authorise NAB to pay a postdated cheque drawn on your account at any time before the date of the cheque arrives.
9. The person signing the cheque must:
   (i) sign any alterations;
   (ii) date the cheque the date on which it was signed; and
   (iii) complete the details.
   
10. If, when checking any cheque or particulars of any cheque, NAB finds on it any irregularity or omission, NAB may dishonour payment of the cheque on your behalf.

3.2 Stopping payment on a cheque

1. You may stop payment on a cheque before it has been paid. Notify NAB on 13 BANK (13 22 65) or in person at any branch.
2. If you advise NAB by phone, your written confirmation may be required.
3. No matter how you choose to notify NAB it is important to tell NAB quickly if you want to stop payment. You will be required to provide:
   (i) your account name and number;
   (ii) the cheque number and amount;
   (iii) the date of the cheque; and
   (iv) to whom the cheque is payable.
   
4. NAB may charge a fee for stopping payment on a cheque, the amount and nature of which is detailed in 1.17 of this PDS.

3.3 Dishonouring cheques

1. Your cheque may (at NAB’s discretion) be returned unpaid or ‘dishonoured’ in certain circumstances, such as where:
   (i) there are not enough available funds in your account or your overdraft limit is not enough to cover the cheque;
   (ii) there is some irregularity or omission with your cheque, for example your cheque is unsigned, is more than 15 months old, is post dated (i.e. bears a date that has not arrived), or has been materially altered (e.g. by a change for the amount originally stated on it) and you have not signed the alteration;
   (iii) you have instructed NAB to stop payment of your cheque; or
   (iv) NAB has received notice of your mental incapacity or of your death.
   
2. You may also incur a Dishonour Fee, the amount and nature of which are detailed in 1.17 of this PDS.

3.4 Effect of crossing

1. If you cross a cheque you are telling NAB not to cash it over the counter. The cheque must be paid to a bank (e.g. into a customer’s account).
2. If NAB does cash the cheque, it may be liable for any loss suffered by the true owner.
3. A cheque is crossed by drawing across the face of the cheque from top to bottom two parallel lines, with or without the words ‘not negotiable’ between them. A crossing may be added by you when you make a cheque or by any person who obtains possession of your cheque.

3.5 Meaning of ‘not negotiable’
The words ‘not negotiable’ between two parallel lines across the face of a cheque mean that, where the cheque is transferred, the person who obtains the cheque has no greater rights than the person who transferred it to him or her.

For example, your cheque might be stolen and then passed on by the thief to another person. That person might then obtain payment of the cheque. In this case, if the cheque was crossed and marked ‘not negotiable’, the person from whom the cheque is stolen might recover the amount of the cheque from the person who obtains payment of the cheque, even though the person who has obtained payment may not have done anything wrong.

3.6 Meaning of ‘account payee only’

1. These words on a cheque are a warning to the bank with which the cheque is deposited that the cheque should be paid only to the person named in the cheque as payee. If NAB pays a different person, NAB may be liable to the true owner, unless NAB has acted in good faith and without negligence (e.g. by making enquiries and receiving reasonable explanation).
2. The words ‘account payee only’ do not prevent the transfer of a cheque.

1. Cheques are generally printed with the words ‘or bearer’ appearing at the end of the line on which you put the name of the person to be paid.
2. The words ‘or bearer’ mean that (except where the cheque is crossed), the bank on which the cheque is drawn has authority to pay the cheque to any person in possession of the cheque, even if that person found or stole it, unless NAB has reason to suspect that the cheque might have fallen into the wrong hands.
3. If you wish to alter this position by making the cheque an ‘order’ cheque, the simplest course is to cross out the words ‘or bearer’ that are printed on the cheque. Also, you may wish to add the words ‘to the order of’ before the name of the payee, but you will still need to cross out the words ‘or bearer’.
4. If the cheque is an ‘order’ cheque, then (except in cases where the cheque is crossed and must therefore be collected by a bank) the bank on which the cheque is drawn should only pay it:
   (i) to the named payee; or
   (ii) to any other person to whom the named payee, by endorsing the cheque on the reverse side, has ordered it to be paid.

3.8 Unauthorised alteration of your cheques

1. When you write a cheque, you should take care to reduce the opportunity for forgery and fraud. You have a duty to complete the cheque so as not to mislead NAB or make it easy for someone else to alter your cheque.
2. Ways to assist you to correctly complete a cheque are:
   (i) do not leave gaps between the words or figures;
   (ii) begin the amount in words as close as possible to the left hand side;
   (iii) begin the amount in figures as close as possible to the dollar sign ($);
   (iv) never write a cheque in pencil or ink that can be rubbed out;
   (v) never sign a cheque before it is used or filled out; and
   (vi) always write the amount of the cheque in words as well as figures, because words are harder to alter without your authority.

3.9 When is a cheque ‘cleared’?

1. Clearing a cheque involves several steps that may take, in normal circumstances, up to 3 working days.
2. The steps involved in clearing a cheque are usually:
   (i) you deposit a cheque you have received into your NAB account;
   (ii) NAB will seek payment of the cheque from the bank on which the cheque is drawn (the two banks could be the same); and
   (iii) that bank will pay the proceeds of the cheque to NAB.
   
   Only after the completion of these steps will the cheque be cleared.
   
3. Normally you will not be able to withdraw the value of a cheque you deposit until the cheque is cleared, even though your account will be immediately credited with the proceeds of the cheque. This rule applies even to cheques made payable to ‘cash’.
4. If a cheque you have deposited is dishonoured NAB will advise you. NAB will also reduce the balance of your account by the amount of the cheque already credited.

3.10 Special clearance
If you want fast clearance of a cheque you deposit, you can ask NAB for a special clearance. You will be provided with an estimate of the time it will take and any applicable fees.

NAB’s fee for a special clearance covers the extra administrative costs involved in making a special payment request to the bank where the cheque account is held. Depending on the speed of clearance you request, this added cost may in some instances include courier expenses. The amount and nature of these fees are detailed in 1.17 of this PDS.

Direct debits
You may make regular payments to a third party (Debit User), by authorising the Debit User to debit your account with NAB.

3.11 General provisions

1. The Debit User will provide you with their direct debit request agreement. Only Debit Users approved by a financial institution can make these arrangements on your behalf.
2. This agreement may provide for the debiting of your account with any amount charged by the Debit User. You may, however, be able to limit the amount or ask that the charging be delayed until after the issuing of a billing advice to you. These arrangements are between you and the Debit User.

3.12 Disputed debits

1. You must notify NAB as soon as possible if you suspect or believe that an amount debited to your account was unauthorised or otherwise irregular. Either visit your branch or call a customer service representative on 13 BANK (13 22 65) between 8am and 8pm (EST Monday to Friday). NAB will promptly process your instruction.
2. If you lodge a written claim with NAB regarding a disputed amount, you should receive a response within 7 banking business days.
3. NAB suggests you also contact the Debit User. This may be especially helpful if you believe that an incorrect amount has been debited to your account.

3.13 Cancellation of direct debit authority

1. You may arrange with NAB to cancel your direct debit arrangements with a Debit User by calling 13 BANK (13 22 65) or visiting in person and completing a cancellation request. If you advise NAB by phone, your written confirmation may also be required.
   
   NAB will promptly process your instruction and stop further debits to your account. NAB will advise the Debit User of your request to cancel the authority. NAB suggests you also contact the Debit User. This may be especially helpful when resolving complaints about incorrect charges.
   
2. To arrange for a direct debit by the Debit User to be resumed on your account, you will need to contact the Debit User and you will also need to contact NAB and cancel the stop payment.

3.14 Non-payments

1. If there are insufficient cleared funds in your account to meet a direct debit payment, NAB may dishonour or pay the debit at its discretion. This may result in your account being overdrawn. If the debit is dishonoured, you may incur a Dishonour Fee, the amount and nature of which is detailed in 1.17 of this PDS and available from NAB at any time.
2. NAB does not have to notify you if a debit is dishonoured or otherwise not made.

3.15 Multiple authorities

1. If you have more than one direct debit arrangement with a Debit User on your account and you cancel one arrangement, this will automatically stop all debits from your account by that Debit User.
2. To arrange for other direct debits to continue on your account, you will need to contact the Debit User. You will then need to contact NAB and cancel the stop payment to allow the Debit User to continue to debit your account.

You must check your statements
3.16 Without limiting any part of these conditions, you must notify NAB within 30 days of the date of receipt of a statement of account if you have any cause to suspect that there is any cheque or direct debit recorded on your statement that you did not authorise or that the information relating to such a cheque or direct debit is incorrect. If you do not, then subject to any applicable law, you do not have any right to make a claim against NAB in respect of such a matter (for example, a forged cheque).

Indemnity
3.17 Subject to any applicable law, you agree to release NAB, indemnify NAB, and save NAB harmless from all liability which NAB may have if NAB refuses to allow payment of a cheque or direct debit in good faith and in the ordinary course of business or if a stop payment request is given too late to enable payment to be stopped or if NAB suffers any loss as a result of acting on your instructions in relation to a cheque or direct debit (such as processing a request to cancel a direct debit arrangement or stopping payment on a cheque or direct debit) or as a result of you breaching any obligation you have in this clause, and you authorise NAB to debit any account of yours with the amount of the indemnity.

General matters
3.18 The terms and conditions in this PDS titled ‘General Matters’ are included in these terms and conditions.

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Section 4

General Matters

The following terms and conditions are included in the terms and conditions applying to all products covered by this brochure.

Code of Banking Practice
4.1 NAB has adopted the Code of Banking Practice and relevant provisions of the Code apply to these products, if you are an individual or a small business customer (as defined by the Code).

4.2 You can obtain from NAB upon request:

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

Changes NAB may make
4.3 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.

4.4 If the product is not used for a period, the length of which is dependent upon the amount of money in the account, deposit or bond, the crediting of interest and issue of statements to you, if applicable, will end and access will be restricted, or the account, deposit or bond 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.

How will I be notified of changes?
4.5 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 introduction of a fee or charge will be given in writing at least 30 days before the change takes effect;
• notice of changes to fees and charges will be given in writing or by media advertisement at least 30 days before the change takes effect;
• notice of changes to interest rates will be given by media advertisement no later than the day 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.

Can NAB elect not to apply a fee or charge?
4.6 NAB may at its discretion waive any fee or charge to the account to which it is entitled. The failure by NAB to collect any fee or charge which applies to the account does not give rise to a waiver of that fee or charge in the future.

What conditions apply to joint accounts?
4.7 If there are two or more of you, you will be treated as holding the product jointly and NAB may accept for credit to the product any cheque, payment order or bill of exchange that is not payable to all of you. This means that each account holder has the right to all of the balance of the account, jointly with the other account holders.

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

4.9 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 product. You will all be deemed to have received any NAB statements and notices forwarded in accordance with these terms and conditions.

4.10 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.

4.11 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.

How is the operation of the account governed?
4.12 Operation on the account will be governed by the signing authority that you may have already provided to NAB or that you 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.

What happens if government charges and taxes apply?
4.13 NAB may debit the account with government charges, duties and taxes relating to the account. For further information refer to NAB’s brochure ‘A Guide to Fees and Charges - Personal Banking Fees’ available from NAB at any time.

Meaning of words
4.14 NAB means National Australia Bank Limited and its successors and assigns.

4.15 Banking day means a day other than a Saturday or Sunday, or a public, special or bank holiday in the State or Territory where the product is opened.

4.16 You means the customer or customers who open the product, 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 product, any other authorised signatory to the product acting within his or her authority.

Preparation of this PDS was completed on 6 August 2007.

For more information call 13 22 65 or
13 BANK
Open 8am-8pm EST,
Monday to Friday
or visit nab.com.au

Hearing impaired people with
telephone typewriters can
contact us on 13 36 77.

Download a copy of the NAB Investment Cash Manager Product Disclosure Statement (PDS) including Terms & Conditions.

Note: To download Product Disclosure Statement (PDS) including Terms & Conditions you will require Acrobat^® Reader

©2007 National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 60100A0507