Common use of Loss of Card Clause in Contracts

Loss of Card. 14.01 If the Card is lost or stolen, the Cardholder must notify the Bank's Card Centre as soon as reasonably practicable and immediately thereafter shall lodge a report to the local Police of the loss and obtain a loss report. The Cardholder shall then also promptly confirm to the Bank such loss or theft in writing together with the said loss report. 14.02 The Cardholder shall be liable to the Bank for every Transaction (which shall include an Unauthorised Transaction) effected by the Use of the Card by any third person prior to the Bank being notified of the loss or theft of the Card provided that: (a) the Cardholder uses his Card or PIN in accordance with the security measures as required in Clauses 4.03 and 14 and has not acted fraudulently or with gross negligence or has not otherwise failed to inform the Bank, the maximum liability of the Cardholder shall not exceed HKD500 or such other amount pursuant to the applicable law, regulations or code of practice; and (b) such limit shall be confined to loss specifically related to the credit card amount but not cover cash advance. Thereafter, the Cardholder shall not be liable for any further Transactions subject always to the understanding that he has acted in good faith and with reasonable care and due diligence in safeguarding the Card and the PIN and by promptly reporting its loss or theft to the Bank/local Police. 14.03 For avoidance of any doubt, the Cardholder shall be liable for all Unauthorized Transaction effected with the use of the PIN before the Bank actually receives the loss or theft report subject to applicable laws and regulations. Further, the Cardholder shall be liable for all loss if it is proven that he has acted fraudulently, with gross negligence, or has failed to inform the Bank as soon as reasonably practicable in case of loss or theft, has failed to follow or comply with the safeguards and obligations set out in Clauses 4.03 and 14 if such failure has directly or indirectly caused the losses.