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The Egg Guaranteed Equity Bond (21 September 2009) is subject to the terms and conditions set out in the Egg Customer Relationship Agreement and the following Special Conditions:
Glossary
In these Special Conditions:
"Bond" means the Egg Guaranteed Equity Bond (21 September 2009);
"Bond Term" means the Start Date to the Maturity Date;
"Closing Date" means 6 September 2009, which is the end of the offering period;
"Exchange" means the London Stock Exchange plc;
"Group" means Citigroup Inc. and its group of companies, including Egg Banking plc;
"Index" means the FTSE 100;
"Index Day" means any day that is a trading day for the Index other than a day on which trading does not take place or the Exchange closes prior to its regular weekday closing time;
"Index End Level" means the closing level of the FTSE 100 on 22 September 2014;
"Index Start Level" means the closing level of the FTSE 100 on the first day of the bond, 21 September 2009;
"Market Disruption" means any material suspension of or limitation imposed on trading on the Exchange in securities that comprise 20% or more of the level of the Index;
"Maturity Date" means 24 September 2014;
"Start Date" means 21 September 2009 and this is the date your bond will be opened and your account debited";
"We","Us" and "Our" refer to Egg Banking plc;
"You" and "Your" means the individual or individuals subscribing to the Egg Guaranteed Equity Bond.
1. "Guaranteed" when used in the context of the name of the Bond, whether in these Special Conditions or in any literature or advertisement describing or promoting the Bond, means that the deposit paid by You for the Bond will be repaid to You at the Maturity Date in accordance with Our contractual obligation to do so. Your deposit is not guaranteed by Egg Banking plc, or any of its affiliates. Unless specifically stated, any capital is not government guaranteed or insured. Our obligation to repay your deposit in full at the maturity date is subject to conditions and You should refer to the brochure and the Special Condition 24 (Compensation) for further details.
Availability
2. The Bond is only available to completed applications received by the Closing Date and cleared funds received by the Start Date.
3. The Bond is available for a limited period, subject to availability and may be withdrawn at any time prior to the Start Date, at Our sole discretion. We reserve the right to refuse any application for the Bond.
4. You must be at least 18 to apply for the Bond. You may apply for the Bond in Your sole name and/or jointly with one other person. You may only apply for one bond in your sole name and one bond jointly with one other person during this offer. If You are applying jointly the funds deposited in the Bond must come from an Egg Savings Account held in the same joint names as the Bond.
Number of Bond holders
5. Any joint application for participation in the Bond must be signed by both applicants. If a joint application is made for the Bond, the joint applicants will be liable (individually and together) for any money due to Us in connection with the Bond. For any joint application for the Bond We will act upon the instructions of either joint applicant, provided that the Bond is held in the same joint names as the Egg Savings Account. If one of the joint applicants tells Us of a dispute between You, we may treat this as a notice of cancellation of the authority by either joint applicant to issue instructions in relation to the Bond on your own, in which case:
(a) any instruction made in relation to the Bond will need the authority of both applicants; and
(b) both applicants will remain liable to Us individually and together for any money due to Us in connection with the Bond.
In the event that one of the joint applicants dies, the Bond will pass by survivorship to the other and will continue in the name of the surviving joint applicant.
Bond opening
6. It is a condition of the Bond that all sums allocated for the Bond are first paid into Your Egg Savings Account. We will then transfer the amount You wish to deposit in the Bond from Your Egg Savings Account on the Start Date. Any amount which is not cleared by the Start Date cannot be transferred. If Your application for the Bond is unsuccessful or We withdraw the Bond for any reason, any intended deposit for the Bond will remain in Your Egg Savings Account. We will tell You in writing within ten business days from the Closing Date if Your application is unsuccessful or the Bond has been withdrawn. If You don't have enough to cover Your nominated investment amount we'll use whatever is in Your account, as long as it is more than the minimum of £1,000. At least £1 must remain in Your Egg Savings Account after we've transferred your investment to ensure that the account remains open.
Minimum and maximum investment limits
7. You must deposit a minimum of £1,000 in the Bond. The maximum amount that You may deposit in the Bond is £1,000,000. You may not deposit additional amounts into the Bond during the Bond Term.
You acknowledge that We reserve the right to withdraw this product if the total aggregated instructions are less than the minimum market transaction size of £1,000,000.
Your right to change Your mind
8. You have the right to cancel Your instructions within 14 days from the offer Closing Date. Your cancellation notice must be made in writing and sent to:
Account Opening Team
Egg Banking plc
Riverside Road
Pride Park
Derby
DE99 3GG
9. After the 14 day cancellation period ie 21 September 2009 (Start Date), You are not permitted to cancel, make withdrawals from the Bond during the Bond Term or close the Bond before the Maturity Date.
Event risk
10. The terms of this Bond are indicative until the Start Date and should the market conditions of underlying variables change, We reserve the right to withdraw this product at any time where the terms promoted cannot be met or assured. Therefore, any instructions held on Your behalf will not be transacted upon and We will write to You to confirm the cancellation of the offering.
Tax treatment of Your Bond
11. Any return made in relation to your Bond (excluding the Your initial deposit amount) is likely to be liable to UK income tax at the rates that apply to savings in the tax year the interest is paid to you, unless you have registered to receive gross interest by completing an R85 form. This information is based on current legislation which may change over the term of the bond. We do not give tax advice. It is important to note the impact of tax will vary according to your individual circumstances. You agree that You are solely responsible for acquiring appropriate independent tax advice in relation to deposits in this Bond and we recommend that You seek the advice of a tax advisor in order to fully understand the way that the Bond will be treated for tax purposes. All returns on the Bond will be paid in accordance with the terms set out on this website.
Charges
12. No fees, expenses or charges will be deducted directly from Your deposit monies or from any return which You may receive should You hold the Bond until maturity. However, the terms upon which We acquired the Bond on Your behalf reflect certain fees, expenses and charges. The embedded charges are not expected to exceed 1.5% pa and reflect the role of parties in setting up and administering this product. For clarity, if you deposit £10,000 you will receive £10,000 at maturity together with any return. You should be aware that We shall be entitled to retain any surplus of this charge as remuneration over and above costs incurred. We reserve the right to introduce additional fees, expenses or increase the embedded charges where this is necessary in order to meet additional expenses incurred by Us as a direct consequence of a change in applicable law or regulation. In such circumstances, We would give You 30 days' written notice of the introduction of the additional fee, expense or charge. You should be aware that there may be additional costs or taxes that You might be liable to pay that are not paid via Us or imposed by Us.
Withdrawals
13. Your initial deposit amount is only 100% guaranteed if You hold the Bond until the Maturity Date. If You wish to redeem Your Bond prior to the Maturity Date You may not get back all of Your initial deposit amount but will receive a redemption amount which We, at Our sole discretion acting reasonably, deem to represent the market value of the Bond at that time.
Return at the end of the fixed term
14. At the end of a Bond term any return will be based upon the performance of the FTSE 100 Index. If there is growth You will receive 100% of FTSE 100 growth to a maximum of 30% (equivalent to 5.39% AER) together with your original deposit. If there is no growth or the index has fallen, then only the original deposit will be returned.
15. The amount originally deposited in the Bond and any return will be paid after the Maturity Date (24 September 2014) into the Egg Savings Account from which the initial Bond deposit was made.
Bond performance
16. We do not make any promise about the future performance of the Bond relative to other products We offer or which are available generally.
Death of an investor
17. In the event of death, the Bond at the request or acquiescence of the deceased's personal representatives may continue in the name of the deceased. Alternatively, the Bond may be closed and an amount determined at the time of the request shall be returned to Your personal representative. Please note the amount returned may be less than the amount initially deposited. No withdrawal fee will be applied. We may require a death certificate and/or other relevant documents to close the Bond.
Difficulties with the Index
18. If for any reason the Index is discontinued, or the method of calculation of the Index changes, or if due to Market Disruption its calculation or publication is materially disrupted, changed or delayed, We will, as is, or, maybe reasonable and appropriate:
(a) Use the successor Index or an alternative or replacement Index, if the Index is discontinued,
or;
(b) use a different method of calculating the value of shares quoted on the Index, if the method of calculation changes,
or;
(c) omit an Index Day on which Market Disruption occurs, or use a different day/time for the valuation of the Index if there is Market Disruption.
Stock Exchange disclaimer
19. The FTSETM 100 Index used to determine the return generated by the Bond is based solely on 'capital return'. This means that it does not take into account any dividends from the companies whose performance the Index tracks. FTSE also compiles a separate 'FTSETM 100 Index' based on 'total return' which does take dividends into account, but this is not the Index used for the purpose of the Bond. Index provider disclosure: The Bond is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (FTSE) or by the London Stock Exchange plc (LSE) or by The Financial Times Limited (FT). Neither FTSE nor the LSE nor FT makes any warranty or representation whatsoever, expressly or impliedly either as to the results to be obtained from the use of the FTSETM 100 Index (the 'Index') and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated solely by FTSE. However, neither FTSE nor the LSE nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the LSE nor FT shall be under any obligation to advise any person of any error therein. FTSETM, FT-SETM and FootsieTM are trade marks of the London Stock Exchange plc and The Financial Times Limited are used by FTSE under license.
Maturity account
20. You must keep the Egg Savings Account from which You made the initial Bond deposit open with a minimum balance of at least £1 until after the Maturity Date to enable Us to make the payments described in Condition 16. If the Egg Savings Account from which You made the initial Bond deposit is closed for any reason, We will transfer any funds due on maturity to another Egg Savings Account held by You. If We discover after the Maturity Date that You do not have an open Egg Savings Account, We will contact You and request You to either open an Egg Savings Account so that the Bond proceeds can be paid into that account, or ask You to give Us Your bank details so that We can pay the Bond proceeds into a current account in Your name (or joint names for a Bond held by joint holders). After the Maturity Date, Egg will not pay any more interest on the Bond proceeds until the Bond proceeds are paid into an Egg Savings Account.
Complaints and enquiries
21. If You have a complaint, in the first instance You should contact Us using either the online secure messaging service, by telephone or in writing to our Customer Service Centre. If You would like full details of Our complaints procedure We will provide these to You on request.
22. All enquiries with regards to Your Bond should be directed to Our Customer Service Centre, either by telephone on 0845 301 0890 or by writing to Us at Egg Banking plc, Riverside Road, Pride Park, Derby DE99 3GG.
Compensation
23. If We cannot meet Our financial obligations to You, You may be entitled to compensation under the Financial Services Compensation Scheme (FSCS) established under the Financial Services and Markets Act 2000. Egg Banking plc is a member of the FSCS. The UK Financial Services Compensation Scheme (the "Scheme") provides compensation in certain instances where Egg Banking plc is unable, or likely to be unable, to satisfy protected claims against it. In such circumstances, the Scheme may provide compensation for claims relating to services provided by Egg Banking plc such as deposit-taking. However, the Scheme is governed by specific rules on compensation which determine your eligibility, the circumstances in which compensation will be available to you, and the limits on compensation payable to you. Any recovery under the Scheme is therefore subject to your specific circumstances, the nature of your claim and the specific rules of the Scheme. Claims under the Scheme in relation to deposits are subject to maximum limits on compensation, as published from time to time on the FSCS website. It is not possible to claim an amount in excess of the published limit even where the financial loss suffered or the amount of initial deposit is higher. The current compensation limit for deposits as at 13 July 2009 is set at 100% of the first £50,000 per customer per authorised firm. Up-to-date information on the limits applicable under the Scheme are available at: http://www.fscs.org.uk.
We will provide further information on the conditions governing compensation and the formalities which must be completed to obtain compensation upon request. More detailed information on the Scheme is also available from the Scheme's website: http://www.fscs.org.uk or you can contact the Scheme at 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN (Tel: 020 7741 4100; Email: enquiries@fscs.org.uk).
Disclaimers
24. Your attention is drawn to the Egg Customer Relationship Agreement, the Brochure and to the information and risk warnings therein. No warranty is given by Us as to the performance or profitability of the Bond or the Index to whose performance it is linked. You must be aware that the price/value of the Bond can go down as well as up and that there is a degree of risk attached to stock market related products such as the Bond. You may not get back the initial amount You deposited if You do not hold the Bond until the Maturity date. You are reminded that past performance is no guarantee of future returns. In the event of any failure, interruption or delay in the performance of Our obligations resulting from any circumstances or event not reasonably within Our control (including, for example, but not limited to, acts of terrorism, war and civil unrest), We shall not be liable or have any responsibility of any kind for any loss or damage You incur or suffer as a result.
25. Subject to the timeframes set out in clauses 8 and 9, You acknowledge and agree that Your Application shall be irrevocable by You.
26. We may from time to time change the terms of these conditions by giving not less than 30 days' written notice to You where such change is required as a direct consequence of a trading suspension, a change in taxation laws or other legal or regulatory change to which We or You are subject.
YOUR INFORMATION AND HOW WE USE IT
27. So that we can provide products and services designed specially for you, we will collect and review all the information which:
(a) you give to us and to other Group companies; or
(b) which we and other Group companies obtain about you personally in connection with this Bond and any accounts or products and services you take from us and which we obtain from third parties such as credit reference agencies, fraud prevention agencies and Group companies.
This is your information and we will process and use the information as set out in clause 12 of the terms and conditions set out in the Egg Customer Relationship Agreement which governs your Egg Savings Account.
Governing law
28. These Special Conditions are governed by English law.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.
The information contained within these product pages does not constitute advice on investments. Guaranteed Equity Bonds are classified as structured deposits. As such, part of your funds will be exposed to stock markets. The ability to earn a return from your deposit is therefore subject to investment risks, including the potential for zero return if the FTSE 100 does not rise over five years and possible loss of some or all of the principal amount invested if the Egg Guaranteed Equity Bond is not held until maturity. Past performance is not indicative of future results, investments can go down as well as up. Prior to making any application, you should fully understand the economic risks and merits as well as the legal, tax and accounting characteristics and consequences of the transaction, and make your own determination that the product is consistent with your objectives and that you are able to assume the risk. Please refer to the full risk disclosures available in these product pages.
The term 'guaranteed' refers to Egg Banking plc's obligation to repay your deposit in full on the Maturity Date provided that the Bond is held until maturity. Your deposit is not guaranteed by Egg Banking plc, or any of its affiliates. Unless specifically stated, your deposit is not government guaranteed or insured. Our obligation to repay your deposit in full on the Maturity Date is subject to conditions and investors should refer to the contents of the brochure for further details.
These product pages do not contain an offer to sell and all expressions of opinion are subject to change without notice. In addition Egg Banking plc and our affiliates may act as capital or agent in similar transactions or in transactions with respect to the instruments underlying the transaction.
Egg Banking plc is registered in England and Wales. Registered number: 2999842. Registered office: Citigroup Centre, Canada Square, London E14 5LB. Egg Banking plc is authorised and regulated by the Financial Services Authority. Egg Banking plc is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000.
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