Revised terms for Overdraft Secured by Unit Trust Facility
Dear Valued Customers,
Please be informed that the revised terms for Overdraft Secured by Unit Trust Facility will take effect for new customer is on 29 August 2025 and existing customer is on 28 October 2025.
| Section | Updated Terms |
|---|---|
| Letter Offer | |
| Prescribed Rate | Two point two five per centum (2.25%) per annum above our Standardised Base Rate (“SBR”) on daily rest basis or at such other rate of interest or rest period as may otherwise be determined by HLBB in writing.
Currently our SBR is Three per centum (2.75%) per annum as at the date of this Letter of Offer. |
| Margin of Advance |
«Margin» % of the security value, or such other percentage thereof as may be determined by HLBB. Computation of the security value is derived as follows: -
In the case of unit trusts, the security value is calculated on the Manager’s repurchase price of that fund as at the previous Market Day, or the “Base Price” determined at HLBB’s discretion, whichever is lower.
HLBB reserves the right to adjust the margin of financing at its absolute discretion at any time and from time to time.
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| Indebtedness: Security Value | «Margin»:100, or any variation thereof by HLBB.
Computation of the security value is derived as follows:
In the case of unit trusts, the security value is calculated on the Manager’s repurchase price of that fund as at the previous market day, or the Base Price determined at HLBB’s discretion, whichever is lower.
HLBB reserves the right to vary the Indebtedness: Security Value at its discretion at any time and from time to time. |
| Terms and Conditions | |
| 1. Definitions | Added and updated the following definition: -
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| 2. Interpretation | Unless otherwise expressly stated:
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| 4. Representations and Warranties | (b) there is no violation or infringement of the provisions of the Financial Services Act 2013 (“FSA”) and Bank Negara Malaysia’s (“BNM”) Guidelines on Credit Transactions and Exposures with Connected Parties (“Guidelines”) , and you will promptly notify the Bank in writing if any of the relationships set out in the FSA and/or Guidelines are established or discovered at any time;
(g) you and/or the other security party(ies) have obtained the consent of all persons named in your application for the Facility, or such other document submitted to the Bank and/or their respective authorised representatives (including directors, shareholders, authorized signatories, or other persons specified by the Bank (“Relevant Data Subjects”).This consent is for the Bank’s collection, holding and use of the personal information of the Relevant Data Subjects in accordance with the Bank’s Privacy Notice** as may be amended from time to time; and
**Privacy Notice refers to the Bank’s policies and principles pertaining to the collection, use and storage of personal information of existing and prospective individuals and entities dealing with the Bank. This notice may be amended from time to time and is available on the Bank’s website or through other means deemed appropriate by the Bank. |
| 6. Interest |
(a) Interest shall be computed on a daily rest basis commencing from the date of the first advance, calculated at the Prescribed Rate as stipulated in the Letter of Offer(s) or any amendments and supplementals thereto on the daily outstanding balance of the Facility and shall be paid: (i) monthly by the Borrower in arrears on the first day of the month or on such other date(s) as the Lender may from time to time stipulate (ii) if the due date is not a Business Day, the payment date shall be extended to the next Business Day. However, if the next Business Day falls in the following calendar month, the payment shall be due on the preceding Business Day. (iii) commencing in the month immediately following the first advance. In and for each succeeding month thereafter, interest at the Prescribed Rate shall be payable on the first day of the month (or on such other date(s) as the Lender may from time to time stipulate); and (iv) on the last day of the Availability Period.
(b) Interest at the rates determined in accordance with this Section shall be calculated on the actual number of days elapsed and shall accrue from day to day.
(c) Any determination by the Lender under this Section shall be conclusive and binding for the purpose of this Agreement save for manifest errors.
(d) Without prejudice to the Lender’s right to payment of monthly interest as set out in this Section 8.01 herein: (i) the outstanding interest on any principal and other monies for the time being hereby secured including capitalized interest shall at or about the end of each calendar month (and notwithstanding that the financier-customer relationship between the parties hereto may have ceased for any reason whatsoever) be capitalized and added for all purposes to the principal sum: and (ii) then owing and shall thenceforth bear interest at the Default Rate whether before or after any Court Order or judgment and be secured and payable accordingly and all the undertakings terms and conditions contained in or implied by these presents and all powers and remedies conferred by law or by these presents and all rules of law or equity in relation to the said principal sum and interest shall equally apply to such capitalized arrears of interest and to the interest on such arrears.
Variation of Interest Rates
(a) Regardless of any other provisions in this Letter of Offer, the Bank is entitled at its absolute discretion from time to time and without any requirement for agreement by you: (i) to substitute and/or change the entire basis of calculating the Prescribed Rate; and/or (ii) to vary, change and/or substitute the Reference Rate; and/or (iii) to vary such margin imposed above or below the Reference Rate; and/or (iv) to vary any commission, discount or other banking charges.
(b) The Lender may exercise a combination of any one or more of the above with prior written notice to the Borrower(s).
(c) The amended or new Prescribed Rate and/or rest period and/or commission, discount or banking charges is payable or applicable from the date such amended or new Prescribed Rate and/or rest period and/or commission, discount or other banking charges take(s) effect. Interest will be re-calculated, if necessary, in accordance with the provisions of this Agreement.
(d) Notice by the Lender may be given: (i) by post, facsimile, short messaging service (SMS), electronic mail, personal delivery or such other mode as may be deemed practicable by the Lender (including notice incorporated into the Lender’s statement forwarded to the Borrower periodically). Notices issued by or on behalf of the Lender (including computer generated notices/statements that do not require any signature) will be directed to the Borrower(s). at the Borrower(s) address, facsimile number or electronic mail address as stated in the Letters of Offer or the last known address, facsimile number or electronic mail address notified by the Borrower(s); and/or (ii) by general advertisement in any form(s) of mass communication (including but not limited to placing in one issue of a daily newspaper a general notice of change addressed to the public generally); and/or (iii) by notice in the Lender’s website and/or placed at the Lender’s branch premises, PROVIDED ALWAYS that the effective date of change and/or substitution shall be the date specified in the advertisement or in the notice.
(c) The decision of the Lender as to what at any time is the Reference Rate or the percentage of interest above the Lender’s Reference Rate or the applicable rest period or the commission/discount rate and the date(s) from which such amendments take effect, shall be final and conclusive.
(d) It is hereby agreed that: (i) any failure by the Lender to give notice in respect of the variation or change in the Reference Rate or Prescribed Rate shall not prejudice or have the effect of invalidating such variation or change; (ii) any failure on the part of the Lender to give notice to or serve notice on the Borrower in accordance with this Agreement or the other Security Documents shall not exempt the Borrower from its obligation to pay interest in accordance with the provisions of this Agreement and the other Security Documents; and (iii) notwithstanding the issue of the general notice specified in Section 8.02(c)(ii) above, the Lender is entitled to decide that such variation shall not apply to the Borrower and the Security Parties to whom a demand under Section 14.15 had been made or legal proceedings had been commenced against the Borrower and/or any of the Security Parties.
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| 7. Capitalisation of Interest | 7.1 The interest on any monies payable under the Facility, including capitalized interest, shall at the end of each calendar month be capitalized and added for all purposes to the principal sum then owing and shall thenceforth bear interest at the applicable Prescribed Rate or as the case may be, the applicable Default Rate. It will be secured and payable accordingly. All covenants and conditions contained in or implied by these presents, and all powers and remedies conferred by law or these presents, and all rules of law or equity in relation to the said principal sum and interest shall equally apply to such capitalized arrears of interest and to interest on such arrears. |
| 9. Recall of Facility | 9.3 In the event of default, if you fail, neglect and/or omit to respond to notices and/or communications issued by the Bank in relation to your default under the Facilities, in accordance with this Letter of Offer and/or the loan/security documents, you hereby agree and consent to the Bank, its employees, representatives and/or its agent(s) visiting any location known to the Bank where you may be present, including your residence, place of work/business. This will be done as the Bank shall deem necessary and appropriate but in any event in accordance with the BNM Guidelines on Fair Debt Collection Practices and/or any regulatory guidelines which may be applicable thereto, for the purpose of preserving and/or enforcing the Bank’s rights and security under this Letter of Offer and the loan/security documents. |
| 10. Review of Accounts & Valuation |
10.2 Notwithstanding anything to the contrary in the Letter of Offer or the Appendices annexed thereto, the Bank shall be entitled to review the granting and/or continuation of the Facility at any time and from time to time. This is irrespective of whether or not the Facility or any part thereof has been utilised or disbursed or whether any event of default has occurred, including but not limited to the following circumstances:
where there is a change in applicable law or regulation which makes it impossible or unlawful for the Bank to continue making available the Facility or any part thereof to you or if you or any other security parties shall be affected by a material change in circumstances. Which in the opinion of the Bank has an adverse impact on your and/or any security parties’ ability to perform your/their obligations hereunder and under the other Security Documents or is likely to be detrimental to the Bank; or
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| 11. Right to Disclosure Information | In addition to the permitted disclosures provided under Schedule 11 of the FSA, you hereby expressly authorize and permit the Bank, its officers and employees to disclose and furnish all information concerning the Facility, this Letter of Offer, your present and future accounts and any other matters relating to you or your business and operations to:
You hereby consent to such disclosure and confirm that save and except for damages arising directly from the Bank’s wilful default or gross negligence, the Bank, its officers and employees shall be under no liability for furnishing such information or for the consequences of any reliance which may be placed on the information so furnished in accordance with this Letter of Offer.
You hereby expressly authorize and consent to the Bank obtaining any information on you from any credit reference agency or source and at any time as the Bank considers appropriate. |
| 12. Consent to Process Personal Information | You hereby agree and consent to the holding, collection and use of all personal data provided to the Bank or acquired by the Bank from the public domain, as well as personal data that arises as a result of the provision of services to you in connection with the Facility in accordance with the Privacy Notice of the Bank as may be amended from time to time. |
| 21. Right to Set-Of | The Bank may at any time or from time to time at its absolute discretion by providing seven (7) days’ notice to you, combine, consolidate or merge all or any of your account or accounts of whatsoever nature (whether current, deposit or loan account) maintained with the Bank at any branch with any of your liabilities (whether such liabilities be present, future, actual, contingent, primary, secondary, collateral, secured or unsecured, several or joint) under any account or agreement or other instrument with the Bank. The Bank may set off or transfer any sum (whether in the same or different currencies) standing to the credit of any such account agreement or instrument in or towards the satisfaction of your liabilities to the Bank under this Letter of Offer and other securities (if any). |
| 22. Interchange or Substitution of Facility | The Bank may, at any time or from time to time in its absolute discretion, at your request, vary, interchange or substitute the Facility with any other facilities including converting any facilities upon such terms and conditions (hereinafter called “the said Terms”) as may be stipulated in the Bank’s letters of offer and/or any other document setting out such terms duly signed by you in acceptance thereof, without affecting the Bank’s rights under this Letter of Offer. All the provisions of this Letter of Offer, save and except such provisions which are inconsistent with the said Terms or not applicable to the interchanged or substituted facilities, shall continue to apply to such interchanged or substituted facilities, unless otherwise stipulated by the Bank. |
| 26. Statement of Account | You hereby expressly agree that, in the absence of any obvious error on the face of the statement or fraud by the Bank the account statement issued by the Bank would be considered correct unless the Bank is notified of any discrepancies within twenty-one days from the statement date. |
| 28. Severability | Any term condition stipulation provision covenant or undertaking of this Agreement which is illegal prohibited or unenforceable shall be ineffective to the extent of such illegality voidness prohibition or unenforceability without invalidating the remaining provisions hereof and any such illegality voidness prohibition or unenforceability shall not render illegal void or unenforceable any such term condition stipulation provision covenant or undertaking in any other jurisdiction. |
| 29. Applicable Law and Jurisdiction | This Agreement and the Security Documents shall be governed by and construed in all respects in accordance with the laws of Malaysia but in enforcing this Agreement and its security under the Security Documents, the Lender shall be at liberty to initiate and take actions or proceedings or otherwise against the Borrower in Malaysia and/or elsewhere as the Lender may deem fit. The parties hereto hereby agree that where any actions or proceedings are initiated and taken in Malaysia they shall submit to the non-exclusive jurisdiction of the Courts of Malaysia in all matters connected with the obligations and liabilities of the parties hereto under or arising out of this Agreement and/or the other Security Documents. |
| 32. Entire Agreement |
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| 33. Enforcement of this Agreement | This Letter of Offer is in addition to and not in substitution of any other rights or securities which the Bank may have from or against you or the other security documents or any other instruments and may be enforced in accordance with the terms hereof without first having recourse to any of such other rights or securities and without taking any steps or proceedings against any other security parties as aforesaid. |
| 37. Application of Payments |
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| 39. Amendments to Security Documents | 39.1 The Bank reserves the absolute right to delete, add to, vary, modify, substitute or impose any terms and conditions in relation to the Facility and/or under this Letter of Offer and/or any of the other security documents as and when the Bank deems fit by giving at least sixty (60) days’ prior notice to you. |
| 43. Anti-Bribery, Anti-Corruption and Whistleblowing Undertakings |
43.1 You acknowledge that the Bank practices a zero-tolerance position towards any form of bribery and corruption in line with the Bank’s ABC Policy and does not condone or consent to the you and/or its Affiliates:
(a) corruptly soliciting, receiving or agreeing to receive any Gratification whether for itself or for any other person; or (b) corruptly giving, agreeing to give, promising or offering to any person any Gratification whether for the benefit of itself or of another person, including with intent: (c) to obtain or retain business for the Bank; or (d) to obtain or retain an advantage to the conduct of business for the Bank which includes securing or expediting the performance of an action or service that the Bank is entitled to.
43.2 You represents, warrants and undertakes that it shall, and shall cause its directors, officers, employees, agents and contractors to observe and uphold the Bank’s zero-tolerance position on corruption and bribery and comply with Anti-Bribery Laws.
(a) In particular, you represents, warrants and/or undertakes to the Bank that: (b) to the best of its knowledge, neither you nor any of its Affiliates, has violated any applicable Anti-Bribery Laws; (c) it has in place and shall maintain adequate policies and procedures (including adopting further policies and procedures as may be reasonably requested by the Bank to fulfill their legal and regulatory compliance obligations during the tenure of this Agreement) to comply with and to prevent violation of any applicable Anti-Bribery Laws; (d) it shall procure its Affiliates and subcontractors to comply with this Clause 42.
43.4 In addition, you undertakes to immediately notify the Bank of any non-compliance or attempted non-compliance with the Bank’s ABC Policy and/or Anti-Bribery Laws and/or any concerns about any improper conduct or wrongful act that may adversely affect the Bank. You may also report the same confidentially through the Bank’s whistleblowing channel as set out in the Whistleblowing Policy.
(a) In the event you and/or its Affiliates is in non-compliance with or has breached the Bank’s ABC Policy and/or Anti-Bribery Laws, the Bank shall be entitled to terminate this Agreement without prejudice to any other rights or remedies of the Bank under this Agreement or any applicable law. (b) In the event any of your subcontractors is found to be in non-compliance with or has breached or is suspected to have breached the Bank’s ABC Policy and/or Anti-Bribery Laws, you shall terminate such subcontractors’ services with immediate effect and appoint alternative subcontractors, where permitted to do so, in accordance with this Agreement, failing which, the Bank shall be entitled to terminate this Agreement without prejudice to any other rights or remedies of the Bank under this Agreement or any applicable law.
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