Terms and Conditions Governing Savings and Time Deposit Accounts, Electronic Banking, and Mobile App

 

These Terms and Conditions (the “Agreement”) govern the opening, maintenance, and operation of all deposit accounts maintained with Vigan Banco Rural Incorporada (“VBRI” or “VBank”), whether Savings Deposit Accounts or Time Deposit Accounts, and the use of the Bank’s Electronic Banking Services and Mobile App. By opening and/or maintaining a deposit account and/or using the Bank’s services, the accountholder (individually, the “Accountholder,” and collectively, the “Accountholders”) agrees to be bound by this Agreement and by all applicable laws, rules, and regulations of the Bangko Sentral ng Pilipinas (BSP), the Bankers Association of the Philippines (BAP), the Philippine Deposit Insurance Corporation (PDIC), the Anti-Money Laundering Council (AMLC), the National Privacy Commission (NPC), and any amendments or new issuances thereto.

 

 

I. Savings Deposit Accounts

 

1. Deposits

1.1 Deposits shall be credited to the Deposit Account only after verification by the Bank. 1.2 The amount verified by the Bank shall be deemed the correct amount deposited. 1.3 Any discrepancy noted shall be communicated to the Accountholder.

 

 

2. Loss or Theft of Deposit Item

2.1 The Bank shall not be liable for any payment it may make on a deposit item prior to receipt of notice of loss or theft. 2.2 Such payment shall have the same effect as if made to the Accountholder personally, except in cases of patently discernible forgery or irregularity.

 

 3. Deposit Account Balance

3.1 Except for manifest error, the Accountholder agrees that the outstanding balance of the Deposit Account as it appears in the Bank’s records is accurate, conclusive, and binding. 3.2 The Accountholder expressly waives any rights under Article 1250 of the New Civil Code insofar as the Deposit Account is concerned.

  

4. Joint and Several Accounts (“OR Accounts”)

4.1 All funds heretofore, now, or hereafter deposited by any Accountholder to the credit of an OR Account shall, without reference to prior ownership, be deemed the property of the Accountholders as solidary owners.

 

5. Bank’s Right to Close the Deposit Account

5.1 The Bank may, at any time and without prior notice, close the Deposit Account if it is improperly handled, if there is misrepresentation by the Accountholder, or for any other reasonable or justifiable cause as determined by the Bank. 5.2 The Bank is authorized to report such closure and the reasons therefor to the BSP, BAP, or any monitoring body established by the BSP or BAP. 5.3 The Accountholder shall hold the Bank free and harmless from all liabilities, claims, and demands arising from such closure and reporting.

 

6. Right of Set-Off

6.1 The Bank is authorized, with or without notice, to charge the Deposit Account and/or apply such amount therefrom as may be sufficient to pay any and all obligations of the Accountholder to the Bank, including loans, interests, penalties, charges, and other receivables, whether covered by promissory notes or other credit agreements, or arising from erroneous credits. The Bank shall not be liable for the dishonor of checks, notes, drafts, or other instruments or for other consequences resulting from such set-off. 6.2 In the case of OR or AND Accounts, the Accountholders authorize the Bank to set-off all amounts in the Deposit Account and/or apply such amounts as may be sufficient to pay any and all obligations of any or all Accountholders to the Bank, and the Accountholders hold the Bank free and harmless from liabilities arising therefrom.

 

7. Deposit Insurance

7.1 Deposits are insured by the PDIC up to ₱1,000,000.00 per depositor, per bank, effective 15 March 2025, or such other amount as may be set by law or regulation. 7.2 PDIC shall presume that the name(s) appearing on the deposit instrument is/are the actual/beneficial owner(s) of the deposit, subject to PDIC rules on transfers, break-ups, and recognition of beneficial ownership (including qualified relatives within the third degree of consanguinity or affinity) and documentary requirements.

 

8. Interest

8.1 Deposits that meet the minimum balance prescribed by the Bank shall earn interest at prevailing rates and in accordance with the Bank’s policies, subject to change in accordance with applicable regulations. 8.2 Interest shall be computed based on the Average Daily Balance (ADB) and credited to form part of principal on the last day of the interest period (the “Interest Payment Date”). 8.3 The day of account opening/booking is excluded from interest accrual.

8.4 No interest shall be paid on savings and/or demand deposit accounts closed before the Interest Payment Date even if the required minimum balance was met prior to closure. 8.5 Interest earned is subject to the prevailing withholding tax unless duly exempted by the Bureau of Internal Revenue (BIR) with proper certification.

Product-Specific Rule — VBank Mobile Savings 8.6 For VBank Mobile Savings, interest is credited daily and computed on the End-of-Day (EOD) Balance; no ADB or maintaining balance applies. 8.7 Computation: a) Day 1–2 from account creation: Interest = (Average Daily Balance) × (Annual Interest Rate) × (1/365) − 20% Withholding Tax b) Thereafter: Interest = (End-of-Day Balance) × (Annual Interest Rate) × (1/365) − 20% Withholding Tax 8.8 “End-of-Day Balance” refers to the balance recorded at 12:00 AM daily.

 

9. Fees and Charges

9.1 The Bank may impose fees/charges, including for: a) Active Deposit Accounts falling below the required minimum monthly ADB for two (2) consecutive months; b) Dormant Deposit Accounts (no deposit or withdrawal for a continuous period of two [2] years for savings accounts and one [1] year for current accounts) that fall below the required minimum monthly ADB; c) Accounts closed within one (1) month from opening; d) Issuance of certifications of account balance; e) Replacement of lost passbooks; f) Stop-payment requests for check(s); and g) Other services related to account maintenance in accordance with Bank policy and applicable regulations. 9.2 Fees/penalties under items (a)–(c) shall be automatically debited from the affected Deposit Account. If insufficient, the Bank may debit other deposit accounts of the Accountholder with the Bank. 9.3 Fees under items (d)–(g) may be paid directly by the Accountholder or debited by the Bank; in case of auto-debit, Section 9.2 applies. 9.4 The Bank shall provide notice of dormancy and/or changes in fees in accordance with applicable regulations and reasonable notice practices.

 

10. Average Daily Balance (ADB)

10.1 The Accountholder shall maintain, at all times, the required minimum monthly ADB relative to the Deposit Account, unless exempted (e.g., VBank Mobile Savings).

10.2 The Bank shall notify the Accountholder, through the system, of account dormancy at least sixty (60) days before the date of dormancy and of the possible imposition of any dormancy-related fee should the account remain non-updated. 10.3 The Bank shall likewise notify the Accountholder of any changes in the required minimum monthly ADB and of any service/maintenance fee to be imposed at least sixty (60) days prior to imposition. Failure to object within thirty (30) days from receipt of notice shall be deemed acceptance. The cost of notification shall be for the account of the Accountholder and may be debited from the Deposit Account.

 

11. Unclaimed Balances

11.1 Pursuant to Act No. 3936, as amended by PD 679, all unclaimed balances held by the Bank in favor of any person known to be deceased or who has not made further deposits/withdrawals for ten (10) years or more shall be transferred to the credit of the Republic of the Philippines.

 

12. Authority to Withhold, Sell, and/or Set-Off

12.1 As security for any and all obligations of the Accountholder to the Bank, the Accountholder authorizes the Bank to withhold and/or set-off any monies, properties, or securities of the Accountholder now in or hereafter coming into the Bank’s possession or control; to sell any such properties or securities at public or private sale; and to apply proceeds to the payment of obligations, without need of judicial action.

 

13. Anti-Money Laundering (AMLA)

13.1 The Deposit Account is subject to Republic Act No. 9160 (Anti-Money Laundering Act of 2001), as amended, and its implementing rules and regulations. 13.2 The Accountholder warrants that the Account shall not be used for money laundering or terrorism financing and that funds shall not originate from unlawful activities. 13.3 The Accountholder agrees to hold the Bank, its directors, officers, and employees free and harmless from liability for actions taken or omissions made in good-faith compliance with AMLA and related issuances.

 

14. Regulatory Examination and Disclosure for AML/CFT

14.1 The Accountholder consents to reasonable examination by competent regulatory authorities and to the submission of data/documents to remove doubt or suspicion involving money laundering, terrorism financing, or other illegal activities. 14.2 The Bank is authorized to disclose required information, domestically or abroad, in connection with AML/CFT compliance, without incurring liability.

 

15. Disclosure of Information; InstaPay-Related Services

15.1 The Accountholder acknowledges that Philippine and foreign governmental authorities (including the United States Government for FATCA purposes) may require disclosure of

account information. For such purposes, the Accountholder waives rights under RA 1405, RA 6426, RA 8791, and other applicable bank-secrecy/privacy laws to the extent necessary for compliance. 15.2 The Accountholder consents to InstaPay-related fraud-prevention services, including necessary data sharing to prevent/detect fraud and unlawful access to InstaPay accounts and transactions.

 

16. Non-Residents with Peso Accounts

16.1 Non-residents may open a Peso Deposit Account subject to Bank approval and applicable Philippine laws and regulations, including BSP rules requiring funding from inward foreign exchange remittances or proceeds of conversion of properties located in the Philippines. 16.2 The Accountholder shall be responsible for any and all taxes with respect to the account. Any outward remittance shall comply with applicable laws and regulations. 16.3 A non-resident Accountholder shall: (i) provide his/her taxpayer identification number in the country of citizenship or residence; (ii) comply with documentation requirements; (iii) declare, under penalties of perjury, the truth and correctness of information; and (iv) waive bank secrecy/privacy rights as required for regulatory compliance.

 

17. Notices

17.1 Notices shall be delivered via the Bank’s digital application, electronic mail, or to the last recorded physical address. 17.2 Unless otherwise specified: (a) personal delivery is effective upon delivery; (b) registered mail is effective on the fifth (5th) day after posting; (c) facsimile is effective upon receipt of the transmission report; and (d) electronic mail is effective upon successful transmission as reflected in the Bank’s records.

 

18. Binding Effect; Governing Law; Amendments

18.1 These Terms bind the Accountholder and his/her/their heirs, executors, administrators, and assigns. 18.2 This Agreement takes effect upon account opening and shall be governed by the laws of the Republic of the Philippines. 18.3 No term may be waived, altered, modified, or amended except in writing signed on behalf of the Bank. If any provision is declared invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect.

 

19. FATCA Compliance

19.1 The client certifies that all information and supporting documents provided are true, correct, accurate, complete, and updated. 19.2 The client authorizes the Bank and its representatives to report/disclose to the U.S. IRS, BSP, BIR, and other authorities, and/or to any third party authorized to receive FATCA information, any information regarding the client’s account as required. 19.3 The client undertakes to inform the Bank in writing within thirty (30) calendar days of any

change in circumstances affecting FATCA status. 19.4 The client shall indemnify and hold the Bank, its directors, stockholders, officers, employees, representatives, and agents free and harmless from any losses, liabilities, damages, or claims arising from false, inaccurate, incomplete, or invalid information/documents provided to the Bank.

 

 

II. Regular Time Deposit Accounts

 

1. Applicable Charges

1.1 Documentary Stamp Tax (DST) is for the account of the Bank, except in cases of pre-termination, in which case DST shall be for the account of the Accountholder.

 

2. Pre-Termination Rules

2.1 Cooling-Off Period a) The Accountholder shall have a cooling-off period of fifteen (15) calendar days from the date of placement. b) If the Time Deposit is pre-terminated within this cooling-off period, no pre-termination penalty shall be imposed, and the contracted Time Deposit rate shall apply up to the date of pre-termination.

2.2 After the Cooling-Off Period a) If the Time Deposit is pre-terminated after the 15-day cooling-off period, the prevailing Savings Deposit rate shall apply in lieu of the contracted Time Deposit rate. b) Interest shall be computed from the date of placement up to the date of pre-termination. c) DST on the pre-terminated Time Deposit shall be for the account of the Accountholder.

 

 

III. Electronic Banking Services — Usage Terms and Conditions

 

1. Scope and Acceptance

1.1 These Electronic Banking Services Terms (the “E-Banking Terms”) govern your use of the Bank’s services via the Bank’s application programming interfaces (APIs), websites, portals, and systems (collectively, the “Site”) and mobile application (the “App”) (together, the “Services”). 1.2 By signing up for or using the Services, you agree to comply with and be legally bound by these E-Banking Terms, as revised from time to time in accordance with Section 1.3. 1.3 The Bank may amend these E-Banking Terms by posting the revised version on the Site/App or by email notice. Continued use of the Services after notice constitutes acceptance. The Bank may modify or discontinue any portion of the Services, and may suspend or terminate access, in cases allowed under law and this Agreement.

 

2. Definitions

2.1 Customer — An individual whose identifying information is provided to or verified by the Bank through its systems. 2.2 Digital Mobile Application System / App — The mobile interface between the Customer and the Customer’s Bank Account. 2.3 Services — The Bank’s electronic banking services delivered via the Site and/or App.

 

3. Limitation of Liability

3.1 To the fullest extent permitted by law, the Bank (including its parent, officers, directors, agents, joint venturers, employees, and suppliers) shall not be liable for lost profits or any special, incidental, indirect, or consequential damages arising out of or in connection with the Services or these E-Banking Terms. 3.2 The Bank’s aggregate liability to you for direct damages shall not exceed the actual amount of proven direct loss attributable to the Bank.

 

4. No Warranty

4.1 The Services are provided “as is” without any representation or warranty, whether express, implied, or statutory, including implied warranties of title, merchantability, fitness for a particular purpose, and non-infringement. 4.2 The Bank does not guarantee continuous or uninterrupted access to the Services; operation may be affected by factors outside the Bank’s control. The Bank will exercise reasonable efforts to process electronic debits and credits in a timely manner, but makes no warranty as to processing times.

 

5. Force Majeure

5.1 The Bank shall not be liable for delays, failures in performance, or interruptions due to causes beyond its reasonable control, including acts of God, governmental actions, terrorism, civil disturbances, war, labor disputes, fires, telecommunications failures, power outages, system failures, or other fortuitous events.

 

6. Security, Data Breach, and Incident Response

6.1 The Bank shall monitor and test data security and system capacity from time to time and adjust as appropriate. 6.2 In the event of a personal data breach, security incident, or unauthorized access attributable to the Bank’s systems, the Bank shall notify affected Customers and relevant regulators as required by applicable law and shall cooperate to mitigate and remediate the incident. 6.3 The Bank will defend and indemnify Customers from third-party claims arising directly from the Bank’s proven breach of this Section 6, except to the extent resulting from (i) the Customer’s acts or omissions (e.g., sharing passwords, phishing, device compromise), (ii) force majeure, or (iii) actions of a third party within permissions granted by the Customer.

 

7. Arbitration

7.1 Except for claims for injunctive or equitable relief or claims regarding intellectual property rights, any dispute arising under these E-Banking Terms shall be finally settled by arbitration in the Philippines in accordance with applicable law and recognized arbitration rules. The prevailing party shall be entitled to reasonable costs and attorney’s fees.

 

8. Time Limitation on Claims

8.1 Any claim arising out of or related to the Services must be filed within one (1) year after the cause of action accrues; otherwise, the claim is permanently barred, to the extent allowed by law.

 

9. Export Controls and Sanctions

9.1 The Services are subject to Philippine and international export controls and economic sanctions. You represent and warrant that your access and use comply with applicable restrictions and that you are not a prohibited party or located in a prohibited jurisdiction.

 

10. Relationship; Privacy; Data Sharing

10.1 The Bank acts as an independent service provider. 10.2 The Bank’s Data Privacy Statement (as amended) explains how personal information is collected, used, shared, stored, and protected, and is incorporated herein by reference. 10.3 In compliance with AMLA and other laws, the Bank may provide information to the AMLC and other competent authorities regarding covered and suspicious transactions. 10.4 The Bank will not sell your personal information to unrelated third parties for marketing purposes without your express consent.

 

11. Intellectual Property

11.1 Vigan Banco Rural Incorporada, VBRI, VBank, and related logos are trademarks or registered marks of the Bank or its licensors. All rights are reserved.

 

12. Credentials and Security

12.1 You are responsible for maintaining the confidentiality and security of usernames, passwords, PINs, and other access credentials. 12.2 Best practices include: (a) do not share credentials; (b) avoid shoulder-surfing; (c) memorize credentials; (d) change credentials periodically and immediately upon suspicion of compromise; and (e) keep your contact details current.

 

13. Notices

13.1 The Bank may provide communications about your account or the Services electronically via the App/Site or by email.

13.2 Notices to the Bank may be sent through the Bank’s support channels or to the principal office address indicated on the Bank’s Site.

 

14. Unauthorized / Prohibited Uses

14.1 You shall not use the Services for any unlawful or prohibited purpose, including, without limitation: pyramid/ponzi schemes; fraudulent or deceptive practices; unlicensed gambling; unlicensed financial services or money transmission; illegal drugs; stolen goods; IP infringement/counterfeits; shell/bearer-share entities; adult services involving trafficking; violent or coercive conduct; extortion; or unlicensed sale of firearms/weapons. 14.2 The Bank may suspend, restrict, or terminate Services and/or make reports to authorities if prohibited use is detected.

 

15. Dispute Resolution; Indemnification; Release

15.1 Indemnification. You agree to indemnify and hold the Bank (and its parent, officers, directors, agents, joint venturers, employees, and suppliers) harmless from any claim or demand (including attorneys’ fees) arising from your breach of these E-Banking Terms or misuse of the Services. 15.2 Release. If you have a dispute with one or more users, you release the Bank (and the foregoing related persons) from claims and damages arising out of or in any way connected with such disputes, to the extent allowed by law. 15.3 Error Resolution. If you believe the Bank has made an error, contact the Bank through official channels (as listed on the Site/App) within 30 days of the transaction. The Bank shall investigate and either correct the error or explain its findings within a reasonable period consistent with applicable regulations.

 

16. Other Provisions

16.1 Language. These Terms are enforced in English. In case of conflict with any translation, the English version prevails. 16.2 Severability, No Waiver, Assignment. If any provision is invalid, the remainder remains effective. Failure to enforce is not a waiver. You may not assign rights or obligations without the Bank’s prior written consent.

 

 

IV. Mobile App — Terms and Conditions

 

1. Scope and Acceptance

1.1 These Mobile App Terms govern your use of the Bank’s App and related mobile services. By downloading or using the App, you agree to these terms.

 

2. License and Restrictions

2.1 The Bank grants a limited, non-exclusive, non-transferable license to install and use the App on a compatible device. 2.2 You shall not copy, modify, reverse engineer, attempt to extract source code, create derivative works, or use the Bank’s trademarks except as permitted by law.

 

3. Posting and Cut-Off Times

3.1 For purposes of dating your transactions, the Bank’s cut-off time applies. Transactions completed before cut-off are posted on the same banking day; transactions completed after cut-off or on Saturdays, Sundays, or banking holidays are posted on the next banking day.

 

4. Automatic Linking and Visibility

4.1 If you nominate an account as a payment account, the Bank may, at its option, automatically link other accounts under your profile for visibility and use, consistent with security and KYC policies. 4.2 By enrolling in Mobile Banking, other products under your name (e.g., loans, deposits, prepaid cards) may become viewable, subject to the Bank’s enrollment requirements and controls.

 

5. App Changes, Availability, and Charges

5.1 The Bank may update the App and/or charge for certain services; any charges will be disclosed in advance. 5.2 Your mobile network provider’s data and roaming charges may apply; you are responsible for such charges. 5.3 You must ensure your device remains charged and secure. Jailbreaking/rooting your device may compromise security and may cause the App to malfunction.

 

6. Third-Party Services; App Stores

6.1 The App may use third-party services that have their own terms and conditions. 6.2 Google Play and Apple Services. Platform-specific requirements may apply. You agree to install updates to continue using the App where required.

 

7. Accuracy of Information and Updates

7.1 While the Bank endeavors to keep information accurate and current, certain data may originate from third parties; the Bank does not warrant such third-party information. 7.2 You agree to promptly install App updates and to stop using the App if notified of termination of service.

 

8. Termination

8.1 The Bank may terminate your right to use the App at any time as permitted by law. Upon termination, your rights under these Mobile App Terms end and you must cease use and, if required, delete the App.

 

9. Notices; Contact

9.1 The Bank may communicate with you via in-App notifications and/or the contact details in your profile. 9.2 Contact details for support and the principal office address are available on the Bank’s Site/App.

 

 

V. General Provisions (Applicable Across All Sections)

1. Amendments. The Bank may amend this Agreement in accordance with law and regulatory guidance, with notice provided through reasonable channels (e.g., App, Site, email, statement messages). Continued use or maintenance of the account/services after notice constitutes acceptance.

2. Entire Agreement. This Agreement (including the E-Banking and Mobile App Terms) constitutes the entire agreement between you and the Bank regarding the subject matter and supersedes prior communications.

3. Governing Law and Venue. Philippine law governs. Venue shall be the proper courts of [City], Philippines, to the extent not otherwise mandated by arbitration or consumer protection rules.

4. Effectivity. These Terms take effect upon account opening and/or first use of the Services/App, as applicable.

 

 

Effective Date: September 15, 2025 Issued by: Vigan Banco Rural Incorporada (“VBRI” / “VBank”)