Re Australian and New Zealand Banking Group Ltd and Others

Case

[1981] ATPT 1

10 August 1981

No judgment structure available for this case.

AUSTRALIA

TRADE PRACTICES ACT 1974-1978

IN THE TRADE PRACTICES TRIBUNAL

RE:

AUSTRALIA - A

- -

hT -

D

-----------

N E W Z E A L A N D

BANKING GROUP

--

LIMITED

and

others being

participants in

the Eank-card

scheme, and

Applicants

(Files Vic. Nos.

1 and 2 of 1980

and NSW No. 7 of

1980) .

RE: Applications for a review of a determination made by tbe Trade Practices Commission dated

18 July, 1980.

MONDAY 10 AUGUST, 1981

giving effect to the present provisions of -

AUTHOR1 ZATIOM

The Tribunal grants authorization to the conduct of the

*

parties being the 'Participating Panks' named as parties in the form of Third Supplemental Deed Annexure "A" hereto

(1) the Interbank Agreement and its Schedules:

(2) related agreements or arrangements that provide for the extension of the Bankcard scheme to New Zealand and the recognition in Australia of bankcards issued in New Zealand; and

(3) the arrangements and agreements relating to Bankcard Mastercharge and Bankcard Visa described in paragraphs (A), (R), ( c ) , ( 0 ) and ( E ) of the

determination of the Trade Practices Commission

dated 28 August, 1980 in relation to the

international aspects of Rankcard

until those provisions are amended in the manner hereinafter referred to and thereafter to those provisions as amended in the manner hereinafter referred to provided that on or before

9 November, 1981 the said Interbank Agreement and its

Schedules be amended by the Participating Banks in the form or effect set forth in the said Fnnexure "A", or in such terms as may be authorized by the Tribunal upon the written

applications for review.

consent of each of the parties to the abovementioned

This authorization does not extend to cover:-

-

ii

(a)

any amendment to the terms and conditions of the contract, arrangement or understandin9 the subject of this authorization;

fb) the terms and conditions of any contract, arrangement or understanding not the subject of this authorization.

PRESIDENT

"A"

This is the Annexure "A" referred to in the Au

the Trade Practices Tribunal dated August 10, 1981.

APKlOB 7/8/81

THIS THIRD SUPPLEMENTAL DEED is made the

day of

1981

A.

by the (first) Supplemental Deed made the 11th day of

June, 1976 each of the Banks listed as the first to

eighth parties (inclusive) to this Deed together with

the Bank of Adelaide agreed to co-operate in promoting

By a Deed made the 7th day of October, 1974 as amended terms and conditions therein contained ("the Interbank

Agreement"

) .

B.

With the consent of all Banks then party to the Scheme the Banks listed as the ninth to thirteenth parties (inclusive) to this Deed have been admitted to the Scheme and by virtue thereof are subject to the terms and conditions of the Interbank Agreement.

C.

("Australian Banks") in their capacity as banks

carrying on the business of banking in Australia

entered into arrangements with Bank of New South

Wales and The Commercial Bank of Australia Limited

in their capacity as banks carrying on the business

In or about October 1979 the Participating Banks Banks") to extend the Scheme to New Zealand so that charge cards issued by each of the Australian Banks are recognised and enforced in New Zealand by Merchant customers of the New Zealand Banks and charge cards issued by the New Zealand Banks are honoured in Australia by Merchant customers of each of the

Australian Banks.

ments Deeds dated the 30th day of January 1981 and

called "Australia-New Zealand Partidpation Agreement"

and "Participation Agreement : Application to ANZ

For the purposes of giving effect to these arrange- into whereby, inter alia, the New Zealand Banks were admitted to the Scheme and became "Banks" under the Interbank Agreement.

D.

Between February and August 1979 the Participating Banks also entered into arrangements for the issue of Bankcard Visa cards and Bankcard Master Charge

set out in the Third Schedule to the Interbank

cards subject to the Cardholder Conditions of Use customers of each of the Participating Banks subject to the terms of the Merchant's Agreement set out in the Fourth Schedule to the Interbank Agreement of Bankcard Visa cards and Bankcard Master Charge cards and Visa cards and Master Charge cards issued outside Australia.

E.

By a Second Supplemental Deed to the Interbank Agreement made the 14th day of October, 1980 the then parties to the Interbank Agreement amended the Interbank Agreement the Cardholder Conditions of Use and the form of Merchant's Agreement set out in the Third and Fourth Schedules respectively to the Interbank Agreement.

F.

All the assets and liabilities of The Bank of Adelaide Limited are now vested in Australia and New Zealand Banking Group Limited.

BETWEEN

:

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

55 Collins Street, Melbourne,

BANK OF NEW SOUTH WALES

60 Martin Place, Sydney,

THE COMMERCIAL BANK OF AUSTRALIA LIMITED

114 William Street, Melbourne,

THE COMMERCIAL BANKING COMPANY OF SYDNEY LIMITED

343 George Street, Sydney,

COMMONWEALTH TRADING BANK OF AUSTRALIA

Cnr. Martin Place and Pitt Street, Sydney,

RURAL BANK OF NEW SOUTH WALES

1 Oxford Street, Sydney,

THE STATE SAVINGS BANK OF VICTORIA

233 Collins Street, Melbourne,

THE NATIONAL BANK OF AUSTRALASIA LIMITED

500 Bourke Street, Melbourne,

BANK OF QUEENSLAND LIMITED

115 Queen Street, Brisbane,

THE SAVINGS BANK OF SOUTH AUSTRALIA

97-105 King William Street, Adelaide,

THE STATE BANK OF SOUTH AUSTRALIA

51 Pirie Street, Adelaide,

THE RURAL AND INDUSTRIES BANK OF WESTERN AUSTRALIA

54-58 Barrack Street, Perth,

THE HOBART SAVINGS BANK (THE SAVINGS BANK OF

TASMANIA)

39 Murray Street, Hobart,

("the Participating Banks")

AND:

-

AN2 BANKING GROUP (NEW ZEALAND) LIMITED

27-35 Mercer Street, Wellington, New Zealand

+

( "ANZ-NZ"

)

WHEREAS

:

G.

The Participating Banks have agreed further to amend the Interbank Agreement including the form of Merchant's Agreement set out in the Fourth Schedule thereto in the manner hereinafter appearing.

NOW THIS THIRD SUPPLEMENTAL DEED WITNESSETH :

1.     Clause 1 of the Interbank Agreement is hereby amended by the deletion of paragraph (vii) to the proviso.

2.

Clause Z ( x i i i ) o f

t h e Interbank Agreement

is hereby

de l e t ed .

3 .

Clause 3

of t h e Interbank Agreement and t h e F i r s t

Schedule

t h e r e t o

a r e hereby

d e l e t e d .

4 .             Clause 4 of t h e Interbank Agreement i s hereby amended -

( a )

by

t h e d e l e t i o n of

t h e words

-

"Subject

t o Clause

3 ( i i ) I 1 ;

( b )

by

t h e d e l e t i o n of

t h e words

-

"and any bank admitted t o t h e Scheme

pursuant t o Clause 3 " ,

and

t h e

s u b s t i t u t i o n t h e r e f o r

of

t h e words

-

"and any bank admitted t o t h e Scheme

a f t e r t h e Date of

Commencement of

t h e

Scheme and before t h e 5 t h day of August

1981".

5 .            Clause 17 of t h e Interbank Agreement i s hereby amended -

( a )

by

t h e

d e l e t i o n

of

t h e

d e f i n i t i o n

t h e r e i n

appear ing of t h e express ion "Bank"

and

t h e

s u b s t i t u t i o n t h e r e f o r

of

t h e

fol lowing

d e f i n i t i o n

-

I, wBank~t s h a l l inc lude

any

bank

admit ted

t o t h e Scheme a f t e r t h e Date of

Commence-

ment of t h e Scheme";

( b )

by

t h e

d e l e t i o n of

t h e

d e f i n i t i o n

t h e r e i n

appearing of t h e express ion "Merchant's Agree-

ment '

and

t h e

s u b s t i t u t i o n t h e r e f o r

of

t h e

fol lowing

d e f i n i t i o n

-

""Merchant's Agreement" means the form of agreement between a Merchant and a Merchant's Bank set out in the Fourth Schedule hereto:

(1)

as varied from time to tiine by any Merchant's Bank to include such provisions (if any) not

inconsistent with remainder of

the agreement as a Merchant's

Bank may decide to include; and

(ii)

in all other respects as varied from time to time with the approval of all Banks".

6.     The form of Merchant's Agreement set out in the Fourth Schedule to the Interbank Agreement is hereby amended as follows -

(a)

by the deletion from paragraph (ii) of Clause

2 of the words -

"at the Merchant's normal prices";

(b)

by the deletion of paragraph (vi) of Clause 4.

7.     The deletion of paragraph (vii) of the proviso to Clause 1 and the deletion of Clause 3 of the Interbank Agreement does not discharge, prejudice or affect and is not to be construed as discharging, prejudicing or affecting -

(a)

the admission to the Scheme of any of the (inclusive) to this Deed;

(b)

the Deed under which each such Bank was so admitted: or

(c)

the admission to the Scheme of any of the New Zealand Banks;

(d)

the Australia-New Zealand Participation Agree- ment and the Participation Agreement : Application to ANZ ank king Group (New Zealand) Limited referred to in Recital C;

(e)

the continuing obligations of each such Bank and New Zealand Bank to observe and perform the obligations accepted by that Bank or New Zealand Bank on its admission including those referred to in paragraph (vii) of the proviso to Clause 1 and paragraphs (ii), (iv) and (v) of the proviso to Clause 3 of the Interbank Agreement prior to their amendment by this Deed. For the convenience of the parties these provisions are set out hereunder in their original form:

Clause 1, Paraqraph (vii) of the Proviso :-

"(vii) Each bank admitted to the Scheme pursuant

to Clause 3 shall pay to the-~anks (other than

Banks which are parties of the 7th Part and

the 8th Part hereto and Banks admitted to the

Scheme pursuant to Clause 3) jointly the

annual sum of $10,000 the first of such pay-

ments being due on the date of admission to

the Scheme".

Clause 3, Paragraphs (ii), (iv) and (vy :-

treated for the purpose of this Clause as a

"(ii) such bank so admitted shall not be admission to the Scheme of other Banks nor shall such Bank be treated as one of those Banks for the purpose of any provision for the approval of all the Banks or a requirement of one Bank by all the other Banksn;

ing on the business of banking in Australia

under the Commonwealth Banking Acts shall not

have authority to appoint any person to be a

"(iv) a bank which is prohibited from carry- services in Australia under the Scheme".

"(v)

such banks so admitted shall have no

beneficial entitlement to any interest in the such Marks so long as this Deed continues with respect to that bank and subject to the terms

and conditions of this Deed".

8.      This Deed shall take effect or be deemed to have

+

taken effect from

1981.

IN WITNESS WHEREOF the parties hereto have executed this

Deed the day and year first hereinbefore written.

EXECUTED by AUSTRALIA AND

)

AUSTRALIA AND NEW ZEALAND

NEW ZEALAND BANKING GROUP

)

BANKING GROUP LIMITED by

LIMITED by being signed

)

its Attorney

sealed and delivered bv its )

Attorney

) \

who certifies that he is an ) Assistant General Manager of) the Bank in the presence of:)

Signed sealed and delivered )

BANK OF NEW SOUTH WALES by

for and on behalf of BANK OF)

its Attorneys who hereby

SOUTH WALES by

j

respectively state that-at

and

)

the time of their executing

its dulv constituted )

this instrument they have no

Attorneys in the presence

j

notice of the revocation of

of:

)

the Power of Attorney

)

Registered No. 64793

)

Miscellaneous Register under

)

the authority of which they

)

have executed this instrument

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

........ ........ ........ ......

Justice of the Peace

Chief Security Officer

........ ........ ........ ......

General Manager

I certify that the Seal of

)

THE COMMERCIAL BANK OF ) AUSTRALIA LIMITED was hereto) affixed by me and that I am ) an Officer appointed by the ) said Bank for that purpose )

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Assistant General Manager

Signed sealed and delivered )

THE COMfVIERCIAL BANKING

for and on behalf of THE

)

COMPANY OF SYDNEY LIMITED

COMMERCIAL BANKING COMPANY )

by its attorney

OF SYDNEY LIMITED by

)

its duly constituted

)

attorney in the presence

)

of:

)

Memorandum whereby

)

the duly constituted i

attorney of THE COMMERCIAL )

BANKING COMPANY OF SYDNEY )

LIMITED under Power of

Attorney reqistered number )

- .

miscellaneous

)

register hereby states that ) he has no notice of the ) revocation of the said Power) of Attorney at the time of ) his executing this )

instrument

1

Signed at Sydney this

)

day of

1

signed by its aforesaid

)

attorney in the presence of:)

)

Signed sealed and delivered )

COMMONWEALTH TRADING BANK

by

)

OF AUSTRALIA by its attorney

of the COMMONWEALTH TRADING ) BANK OF AUSTRALIA the duly ) constituted attorney of the ) said bank in the presence )

of:

)

The Common Seal of the

RURAL BANK OF NEW SOUTH

WALES was hereunto affixed

and this instrument was

signed by the Commissioner

j

whose signature is set

)

opposite hereto (under and

)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

in pursuance of the power

)

Commissioner

him by resolution of the

in that behalf delegated to

)

Commissioners) in the

presence of:

........ ........ ........ .....

Secretary

EXECUTED BY THE ) COMMISSIONERS OF THE STATE ) SAVINGS BANK OF VICTORIA BY ) BEING SIGNED SEALED AND )

DELIVERED IN VICTORIA BY

)

I

ITS ATTORNEY UNDER POWER OF )

ATTORNEY NUMBER

)

IN THE PRESENCE OF:

)

Executed on behalf of THE

1

NATIONAL BANK OF AUSTMXSIA)

LIMITED by its attorney, )

William Henrv Hodason under ) Power of ~ttorne~-Number )

232285 (who states that he )

holds the office in the Bank)

indicated under his

)

........ ........ ........ ......

signature)

)

BRANCH BANKING DIVISION

Chief Manager

The Common Seal of BANK OF ) QUEENSLAND LIMITED was ) affixed hereto in accordance) with a resolution of

Directors, in the presence j

of:

) )

........ ........ .. Director

)

j

........ ........ .. Director

) )

and

)

SIGNED by a Trustee of THE )

SAVINGS BANK OF SOUTH

)

........ ........ ........ ......

AUSTRnLIA for and on behalf )

Truste

of the said Bank and )

countersigned by the General)

Manager of the said Bank and)

........ ........ ........ ......

the Common Seal of the said )

General Manage

Bank is hereunto affixed

)

THE COMMON SEAL of THE STATE)

BANK OF SOUTH AUSTRALIA was )

hereunto affixed with the

)

authority of the Board in

j

the presence of:

)

Chairman

)

General Manager

j

THE COMMON SEAL OF THE ) COMMISSIONERS OF THE RURAL ) AND INDUSTRIES BANK OF ) WESTERN AUSTRALIA was hereto)

affixed by

)

an Authorised Officer in the)

presence of

)

a member of

)

the Commissioners pursuant ) to a resolution passed at a ) Meeting of the Commissioners) this day of )

)

........ ........ ........ .....

Commissioner Authorised

Officer

The Common Seal of THE

)

HOBART SAVINGS BANK-HE

)

SAVINGS BANK OF TASMANIA)

)

was hereunto affixed bv

)

order of the ~xecutive'

j

Committee in the presence

)

of:

Member

) ........ ..... j

of the ) )

Executive ) ........ ..... )

Committee

)

)

. . ........ ........ ........ ...

General Manager

EXECUTED by ANZ BANKING

)

GROUP (NEW ZEALAM)) LIMITED )

by being siqned sealed and

)

delivered by its duly

j

authorised Attorney

)

in the presence of:

)

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