1. STANDARD TERMS AND CONDITIONS
1.1 Application and Relationship with Specific Terms and Conditions
- These general terms and conditions apply to the Savings Mudharabah Account (“Account”) unless the specific terms and conditions applicable to specific group account created under the Account provide otherwise.
- In the case of a specific group account created under the Account, these general terms and conditions are to be read in conjunction with the specific terms and conditions of such specific group account.
1.2 Applicable Shariah Principle
- The applicable Shariah principle shall be the Principle of Mudharabah. The parties will participate in the Mudharabah arrangement whereby the Customer (as Rabbul Mal) will contribute to the Mudharabah Fund via Mudharabah Balance and the Bank (as a Mudharib) will contribute the labour and expertise and both Parties will be sharing the profit of the investment according to the agreed profit sharing ratio. In case of losses of the Invested Portion, the Customer loses from his Mudharabah Balance while the Bank loses its efforts.
- In this Mudharabah Arrangement, a portion of the Mudharabah Fund will be designated as a Reserve Portion to support daily withdrawal activities by the customers (“Reserve Portion”) and the remaining balance will be invested (“Invested Portion”).
- Account means a Mudharabah Savings Account-i opened by the Customer with the Bank. The Account shall include any specific group account created as may be determined by the Bank from time to time.
- Bank's Rules and Regulations means the Bank’s general rules and regulations governing the deposit accounts, facilities and services provided by the Bank for its’ customers as may be prescribed or stipulated by the Bank from time to time.
- Business Day means a day (other than Saturday, Sunday or a public holiday) on which banks and other financial institutions licensed under the Islamic Banking Act, 1983 are open for business in Kuala Lumpur.
- Customer or Customers means the Account holder.
- Cut-off Time means 12.00 midnight each day where the Mudharabah of the previous day ends and the new Mudharabah starts whereby all capitals deposited into the Account will be added to available balance of the Mudharabah Fund.
- Invested Portion means the remaining balance of the Mudharabah Fund utilized for investment.
- Mudharabah Balance means at any time the remaining balance in the Account including the profit accrued thereon from the previous day investment less the aggregate withdrawal amounts, if any and excluding the new deposits deposited on the day prior to the Cut-off Time.
- Mudharabah Fund means the total Mudharabah Balance of the Customers at any time.
- Minimum Balance means the minimum amount which the Customer has to maintain in his Account at all times in accordance with Item 2 of Schedule 1
- Mudharabh Arrangement means the arrangement between the Customer and the Bank pertaining to a partnership for profit in accordance with the Principle of Mudharabah;
- Mudharib means the Bank.
- Parties means collectively the Bank and the Customer and “Party” shall refer to any one of them.
- Rabbul Mal means the Customer.
- Reserve Portion means a portion of the Mudharabah Fund reserved to facilitate daily withdrawal activities of the Customer from the Accoun
2. MUDHARABAH ARRANGEMENT
2.1 The Account
- The Bank may create specific groups account under the Savings Mudharabah Account-i to cater for the needs of a specific group of customers such as children and senior citizens. If deemed necessary by the Bank, specific terms and conditions shall be provided to govern the operation of such account. For avoidance of doubt, the specific terms and conditions shall be approved by the Shariah Committee of the Bank and shall be inserted as an addendum to this Agreement.
- Deposits from the customers must be received by the Bank before the Cut-off Time each day for the next day’s investment. Deposits accepted by the Bank before the Cut-off Time will be considered a Qard and it will not form part of the Mudharabah Balance until the next day.
- A Reserve Portion will be apportioned from the Mudharabah Balance of every customer to support daily withdrawal activities of the Customers. No withdrawal is allowed if the Reserve Portion is insufficient. The Bank covenants that it will not utilise the Reserve Portion for its benefits. The percentage of the Reserve Portion will be published or displayed daily by the Bank at its branches.
- It is permissible for the Customer to make withdrawal from the Mudharabah Fund even though such withdrawal may exceed the Customer’s share in the Reserve Portion. For avoidance of doubt, such withdrawal is permissible on the basis of mutual and collective agreement of all Customers to allow such withdrawal provided always the withdrawal activities by the Customers must not exceed the total Reserve Portion of all Customers at any time.
- Profits, if any from the Invested Portion will accrue daily and the Bank will credit the accrued profits into the Account on every month end. The distribution of profit or loss shall be in accordance with the actual condition of the investment.
- (f) For the avoidance of doubt,
- The investment of the Mudharabah Fund is independent from the Bank’s capital and other investments;
- Investment of the Mudharabah Fund will be on a daily basis and the capital for the new Mudharabah Arrangement would be the proceeds of the Mudharabah Fund of the previous day together with the profit or loss for the day, as the case may be. The Mudharabah Arrangement will be renewed daily by the Cut-off Time for as so long as the Account is not closed.
2.2 Participation in the Mudharabah
- The tenure of the Mudharabah Arrangement is daily until the Account is closed or terminated in accordance with Clause 4.
- The Bank shall be responsible for the management and administration of the Mudharabah Fund and its investment activities.
- The parties acknowledge and aware of the existence of risk of losses of the Invested Portion.
2.3 The Mudharabah Fund
- The Parties hereby agree that:
- the management and administration of the Mudharabah Fund shall be in accordance with the Bank’s Regulations and Procedures which will be subject to the Shariah principles.
- The Mudharabah Balance is managed on a pool basis. The Customer may deposit or withdraw his monies into or from his Account subject to Clause 2.3(e) hereof.
- the Bank shall have the right to enter into any arrangement with any other parties for the purpose of providing the benefit or protecting the interest of the Parties in Mudharabah Arrangement provided that such arrangement is approved by the Shariah Committee of the Bank.
- the Parties will agree on the profit sharing ratio as stated in Item 1 of Schedule 1. Notwithstanding thereof, the Bank reserves its right to increase the Customer’s profit sharing ratio at the Bank’s discretion. Any proposed changes to the profit sharing ratio will be notified by the Bank by giving fourteen (14) days’ notice to the Customer. If the Customer does not agree with the proposed changes, he must close the Account within seven (7) days from the receipt of the notice. The Customer shall be deemed to have agreed on the changes to the profit sharing ratio if no steps are taken to close the Account within the stipulated period.
- In the event the Account is closed in accordance with Clause 4 hereof, the Customer hereby agrees to waive the previous day accrued profit which he is entitled to, if any, and consents for the Bank to take such profit for the Mudharabah Fund’s benefit. Notwithstanding the waiver granted hereof, the Customer will be entitled to claim such accrued profit, if he so desires by giving one (1) day prior notice in writing of his intention. In the event of any losses incurred, the Customers collectively agree to bear the loss portion of the withdrawing customer.
- The Mudharabah Arrangement ends daily at the Cut-off Time. The evaluation and computation of the rate of return of the Mudharabah Fund shall be held on daily basis. Upon such evaluation the accrued profit, if any, will be distributed between the Bank and the Customer based on the agreed profit sharing ratio and the Customer's entitlement will be credited into the Account at month end every month;
- The Bank and the Customer agree that his Mudharabah Balance shall be used for the purpose of investing in the Shariah compliant ventures based on structures approved by the Bank's Shariah Committee, with a view to profit.
- The Mudharabah Fund is independent of the Bank's capital and all transactions in respect of the Mudharabah Fund shall be recorded separately to ensure their segregation from the Bank's transactions.
- The initial deposit for the opening of the Amount shall be Ringgit Malaysia One Hundred Ringgit (RM100.00) only and the Customer must maintain a Minimum Balance in his Account at all times. If the balance in the Account goes below the Minimum Balance the Bank reserves the right to close the Account and refund the balance thereof.
- All actual operational costs incurred such as marketing, remittance, legal consultancies and services costs for the Mudharabah Fund is borne by the Mudharabah Fund with a maximum limit of five per centum (5%) of the Mudharabah Fund. The Bank shall bear additional costs of the Mudharabah Fund including the Bank’s staff salaries.
2.4 Return of Profit
- The Bank and the Customer agree that the Mudharabah Fund will be evaluated and computed daily and the return of profit (if any) shall be based on the aggregate profit accrued from the daily Mudharabah Arrangement.
- The net profit of the Mudharabah Fund shall be the total Mudharabah Fund value less the capital and the incurred operational costs.
- The net profit shall be distributed based on the agreed profit sharing ratio and shall be credited into the Account at the month end.
3. BANKING CHARGES
The Customer hereby agrees that the Bank may impose charges for any of its additional services that is part of its obligations as a Mudharib rendered to the Customer at the rates to be agreed upon between the Parties. All banking charges when due shall be debited from the Account.
4. CLOSURE OF ACCOUNT
|4.1 Closure of Account by the Bank
The Bank reserves its right to close the Account for any reason as required by law by giving fourteen (14) days notice of such intention to close the Account.
4.2 Closure of Account by other means
The Parties hereby agree that the Account shall be deemed to be closed in the following situations:
- if the Account is closed due to the operation of Clause 4.1 hereof; or
- if Bank Negara Malaysia instructs the Bank to close the Account;
and pursuant to Clause 4.1 and Clause 4.2 (a) and (b), the profit (if any) shall be distributed based on the profit sharing ratio as duly agreed by the Parties herein. The profit, if any will be payable upon closure of the Account.
In the event that the Account is closed pursuant to this clause, the Mudharabah Arrangement shall forthwith terminate pursuant to clause 15 herein.
5. CLOSURE OF MUDHARABAH FUND
In the event of dissolution of the Mudharabah Fund by the Bank for whatever reasons, the Mudharabah Arrangement shall be terminated and the Mudharabah Balance together with the accrued profit, if any shall be distributed to the Customer and the Bank accordingly.
6. TERMS AND CONDITIONS SPECIFIC TO JOINT ACCOUNT
|The additional specific terms and conditions in this Clause 6 apply to each joint account holder.
6.1 The Bank can collect for the credit into the Customer’s account, cheques and other instruments belonging or payable to any of the Customer’s holding a joint account.
6.2 The operations of the joint account shall be as provided by the mandate given by the joint account to the Bank.
6.3 If any joint holder dies, the surviving account holder will have full authority to operate the account. The Bank will incur no liability in relying on the instruction of the surviving account holder.
6.4 Any notice given to one joint account holder is deemed to be sufficient notice to all joint account holders.
6.5 The Bank may suspend the operation of a joint account:-
6.6 The Bank will not be liable to any joint account holder for any consequences of the suspension of the joint account. The Bank will not be liable to any joint account holder if it does not suspend a joint account when it could have done so.
- if there is any dispute between any of the joint account holders and the dispute has not been resolved to the satisfaction of the Bank.
- if one joint account holder attempts to withdraw or notifies the Bank of his or her intention to withdraw from the joint account.
- if any joint account holder has been declared bankrupt or that a petition of bankruptcy has been presented to any joint account holder.
7. TERMS AND CONDITIONS SPECIFIC TO CLUB SOCIETIES ASSOCIATIONS ACCOUNT
|The additional specific terms and conditions in this Clause 7 apply to club, society, and association’s accounts.
7.1 The Bank can collect for the credit into the Customer’s account, cheques and other instruments belonging or payable to the club, society, associations.
7.2 The Customer will provide the relevant resolutions to authorise the opening of the Account and to provide specimen signatures for the operation of the Account. The instructions given by the Customer for the operation of the Account shall remain in force until revoked in writing notwithstanding any change in the constitution or the name of the club, societies or associations and shall apply notwithstanding any change in the membership of the club, societies or associations whether by death, bankruptcy, retirement, admission of new members or otherwise.
8. TERMS AND CONDITIONS SPECIFIC TO CHILDREN’ SAVINGS MUDHARABAH ACCOUNT
The additional specific terms and conditions in this Clause 8 apply to children and trustee account
8.1 This Agreement is understood to be entered into by the Customer on behalf of the minor or beneficiary for whom the Customer retains the guardianship rights or appointed as the trustee/executor/administrator for the beneficiary under the relevant deed of trust or will or other authority.
8.2 Every guardian/trustee/executor/administrator as at the date on which the Account is opened and every person who is thereafter appointed as such agrees or on being appointed will be deemed to agree to be bound by this Agreement.
8.3 All guardians, trustees, executors or administrators named as the Customer in this Agreement shall have joint and several liabilities to the Bank for the performance of all obligations imposed under this Agreement.
8.4 The Bank must be immediately notified in writing of the resignation or appointment of any guardian, trustee, executor or administrator. Until released by the Bank in writing by the Bank, the liability of a guardian, trustee, executor or administrator in respect of the Account shall remain.
8.5 Where the minor is a Muslim, the Account shall be subject to the Shariah Principles in respect of the minor’s estates. The Customer shall give fresh instructions and furnish the mandate for the operations of the Account upon the minor, attaining the age of eighteen (18) years old. In the absence of any such instruction as aforesaid, the authority for the continued operation of the Account shall vest in the Customer. The operations of the Account for beneficiary under trust shall be subject to the authority given under the deed of trust or will or other authority.
8.6 In the event of the Customer dies before the minor attains the age of eighteen (18) years, the Account shall be frozen and matters pertaining to the Account shall be referred to the new legal guardian of the minor. Matters concerning death of the trustees/executors or administrators shall be subject to the deed of trust or will or other authority.
9. LIMITATION OF LIABILITY
The Customer agrees that the Bank shall not be liable for any losses of capital in the Mudharabah Arrangement except in case of negligence or misconduct or breach of the terms and conditions of this Agreement.
The Customer agrees that the Bank shall not be responsible for losses, costs and expenses which may be incurred by the Customer in connection with the execution by the Bank of any instructions in respect of the Mudharabah Fund or if the Account or any part thereof is reduced or frozen by any government or official authority.
10. RIGHT OF SET-OFF
The Customer authorises the Bank to combine, consolidate or merge all or any of the Customer’s accounts with the Bank and the Bank may apply, set off or transfer any sum standing to the credit of any such accounts in or towards satisfaction of any sum then due from the Customer to the Bank and may do so notwithstanding that the balances on such accounts and the liabilities may not be expressed in the same currency and the Bank is hereby authorised to effect any necessary conversions at the rate of exchange then prevailing. The rights of the Bank as stated hereinabove shall be without prejudice and in addition to any right of set off, combination of accounts, lien or other right to which it is at any time otherwise entitled (whether by operation of law, contract or otherwise). However, the Bank shall not be obliged to exercise any of its rights under this Clause.
11. CHANGE OF TERMS AND CONDITIONS
The terms and conditions in this Agreement herein are not exhaustive. Subject to the approval of the Bank’s Shariah Committee and the acceptance of the Customer, the Bank, reserves the right to add, modify vary or delete any of these terms and conditions. Should the Customer choose not to agree to the changes in the term and conditions, then, the Bank has the right to terminate the Mudharabah Arrangement.
12. RULES AND REGULATIONS OF REGULATORY BODIES
Without prejudice to this Agreement and the Bank’s Rules and Regulations, where applicable, the terms and conditions of this Agreement shall be governed by and subjected to such rules, regulations and/or directives (whether or not having the force of law) required of or imposed upon the Bank from time to time and at any time by Bank Negara Malaysia or any other authority having jurisdiction over the Bank and shall be subject to the prevailing guidelines, issued from time to time Provided Always that it does not contradict the Shariah principles. Pursuant thereto, the Bank shall notify the Customer as soon as practicable of such changes being communicated to the Bank.
The Customer hereby agrees and authorises the Bank to disclose any information about or with regard to the Customer’s affairs and/or the Account as authorised by law or for such purposes as the Bank may deem reasonable or necessary.
14. CHANGE OF ADDRESS, SIGNATURE OR PARTICULARS
|Any change of address or signature(s) or other particulars that are recorded with the Bank shall be notified to the Bank in writing. All communications including the service of any legal process sent by post to or left at the Customer’s last address registered with the Bank shall be deemed to have been duly delivered to and received by the Customer.
|The Customer and the Bank agree that the Mudharabah Arrangement shall terminate forthwith upon receipt of the notice of termination from the Customer or the Bank:-
- upon closure of the Account in accordance with Clause 4.1; or
- upon closure of the Account in accordance with Clause 4.2; or
- upon closure of the Mudharabah Fund pursuant to Clause 5 herein.
16. FURTHER PROVISIONS
16.1 Reconstruction of the Customer and the Bank
The liabilities and/or obligations created by this Agreement shall continue to be valid and binding for all purposes notwithstanding any change by amalgamation, reconstruction or otherwise which may be made in the constitution of the Bank, and similarly the liabilities and/or obligations created by this Agreement continue to be valid and binding for all purposes notwithstanding any change of any sort in relation to or affecting the Customer (if applicable), and it is expressly declared that no change of any sort in relation to or affecting the Customer (if applicable) shall in any way affect the liabilities and/or obligations created hereunder to any transaction whether past, present and future.
16.2 Rights cumulative, waivers
The rights of the Bank under this Agreement herein are cumulative and may be exercised as often as they consider appropriate and are in addition to its rights under any applicable law. The rights of the Bank in relation to this Agreement shall not be capable of being waived or varied otherwise than by an express waiver or variation in writing. In particular any failure to exercise or any delay in exercising any of such rights shall not operate as a waiver or variation of that or any other such right or affect the liabilities of the Customer under this Agreement. No defective, single or partial exercise of any right, power or privilege hereby conferred on the Bank shall preclude any further exercise thereof by the Bank or the exercise of any other right, power or privilege conferred on the Bank and no act or course of conduct or negotiation on the part of the Bank or on its behalf shall in any way preclude the Bank from exercising any such right or constitute a suspension or any variation of any such right.
Time shall be of the essence in this Agreement.
16.4 Invalidity of any provision
If any of the provisions of this Agreement becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired provided that the Mudharabah Arrangement is valid from the Shariah perspective.
16.5 Governing Law
This Agreement shall be governed by and shall be construed in all respects in accordance with the laws of Malaysia insofar it does not contradict Shariah Principles.
16.6 Dispute Resolution
- Any dispute, controversy or claim arising out of or in relation to this Agreement, or the breach, termination or invalidity thereof shall be settled, insofar as it is possible, by mutual consultation and consent.
- If Parties should be unable to reach mutual consent within thirty (30) days after the notice by either Party of dispute, the question shall be settled by arbitration. The award of the arbitrators shall be final and binding upon the Parties hereto subject to compliance with the Shariah principles.
16.7 Withholding Tax
All profit payments by the Bank to the Customer under this Agreement shall be made in full without any deduction or withholding (whether in respect of set-off, counterclaim, duties, taxes, charges or otherwise whatsoever) unless the deduction or withholding is required by law.
16.8 Independent Parties
Nothing in this Agreement shall be deemed to constitute a partnership, other than the partnership in the Mudharabah Arrangement pursuant to the Partnership Act 1961 and/or any common law principles relating to partnership and no party shall have any authority to bind or shall be deemed to be the agent of the other in any pursuant to the Partnership Act 1961 and/or any common law principles relating to partnership.
16.9 No Payment of Interest
For the avoidance of doubt and notwithstanding any other provisions to the contrary herein contained, it is hereby agreed and declared that nothing in this Agreement shall oblige the Bank or the Customer to pay or to receive interest (by whatever means or name called) on any amount due or payable to another party or to do anything contrary to Shariah Principles.
It is hereby agreed that the computation and payment of Zakah is the responsibility of the Customer.
|Item 1 - Profit Sharing Ratio
|For the first RM 50,000
|For amount exceeding RM 50,000
|Item 2 - Minimum Balance
|Savings Mudharabah Account
|Children Savings Mudharabah Account-i