Form of General Conditions for Managing Accounts

Israel Bank Supervision Department Bank-Customer Division (Regulation Unit - Bank (Customer)

---

Fax: 02-6669077 : Tel: 02-6552680 P.O.B. 780, 91007 Jerusalem

Jerusalem, 26 Shevat, 5774 January 26, 2014 Circular No. 2396-06

To: Banking Institutions

Subject: Form of General Conditions for Managing Accounts

1. Banks that currently require new customers opening bank accounts to sign a unified form of General Conditions for Managing Accounts, which also regulates current accounts, as well as additional banking services such as deposits in Shekels and foreign currencies, deposit certificates, securities, etc., and credit.

2. This unification may impose on the customer's agreement commitments that are not necessarily required for the accounts in question, or may involve the customer in obligations they did not intend to assume, especially if it is a joint account. The existence of additional authorizations also increases the risk of entanglement. As a result of the increased use of communication in banking, the likelihood of fraud against them has grown.

3. In light of the above, you are requested to act in one of the following two ways: (a) Dividing the form of General Conditions into sections according to the types of services (e.g., current account, time deposits, deposit certificates, securities, etc.), with the customer signing each section; (b) Stating in the form of General Conditions that the General Conditions apply only to the types of services presented in the appendix to the form; specifying in the appendix the types of services presented; having the customer sign next to each service they request to receive; and having the customer sign at the bottom of the appendix.

4. This circular cancels Circular No. 1881-06 dated 03.08.97.

5. The beginning of this circular is on the day of its publication.

With respect,

David Zaken Supervisor of Banks