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Corporate Agreement Deposit

I. Definition
The corporate agreement deposit is a kind of deposit where the customer signs a deposit agreement with the Bank to open a settlement account and specify the term and basic amount of account. For the basic amount, the Bank will pay interest at the current deposit rate at the date of interest settlement or withdrawal; for the part exceeding the basic amount or the part exceeding the minimum amount of deposit and meeting relevant conditions, the interest will be paid at the agreed rate at the date of interest settlement or account clearing.

II. Account-opening
The institution and the account-opening bank shall sign the Agreement-based Deposit Contract which has a term of no more than one year and will be renewed automatically for one year unless either party requires termination or modification before the expiration. To apply for an agreement-based deposit account with ICBC, the institution shall open a settlement account at the same time for accounting of normal economic activities, which will be denominated as account A. Meanwhile, the system will create an agreement-based deposit account (hereinafter “account B”). If the institution has already had a settlement account, it is only required to take the original settlement account as account A to make agreement-based deposit.

III. Account Cancellation
Upon expiration of the contact, if the institution asks to terminate the contract, the agreement-based deposit account will be cancelled and the principal and interest accrued in account B will be transferred to the settlement account. To settle account A, account B must be settled at the same time. In principle, the customer is not allowed to ask for account clearing during the term of contract. Under special circumstances, a written statement must be submitted. Upon the review and confirmation of the Bank, the account will be cleared.

Corporate Finance