The Law was published in the Official Gazette “Valstybės žinios” No 97-2775, 1999

The Law was published in the Official Gazette “Valstybės žinios” No 97-2775, 1999 Official translation REPUBLIC OF LITHUANIA LAW ON PAYMENTS 28 October 1999 No. VIII-1370 Vilnius (As amended by 15 July 2004 No. IX-2404) CHAPTER I GENERAL PROVISIONS ENERAL P Article

1. Purpose of the Law
2. This Law shall establish: 1) the relationship between credit institutions and customers in effecting payments; 2) the payment procedure.
3. The Law shall ensure the application of the European Union legal acts referred to in the Annex to this Law. Article
4. Definitions Used in this Law
5. ‘Authentication procedure’ means a procedure established by a credit institution or under the arrangement between a credit institution and a customer, which determines whether a payment instruction, a change in a payment instruction or a revocation of a payment instruction has indeed been issued by the entity specified in the payment instruction as a payer or beneficiary. The authenticity of payment instructions made by electronic payment instruments shall be ascertained by using authentication instruments.
6. ‘Banking business day’ means a day during which a credit institution executes payment instructions.
7. ‘Debit transfer’ means a transaction initiated by a beneficiary where a payment instruction submitted to the payer’s or the beneficiary’s credit institution is processed to transfer the payer’s funds to the beneficiary’s account at the credit institution. The beneficiary shall have a right to submit a payment instruction if it has a written consent by the payer to debit funds from its account and the aforementioned consent is submitted to the payer’s credit institution.
8. ‘Electronic payment instruments’ means remote access payment instruments and electronic money.
9. ‘Holder of an electronic payment instrument (hereinafter referred to as a ‘holder’)’ means a customer of a credit institution to which the credit institution issues an electronic payment instrument.
10. ‘Electronic money’ means a value in terms of money as an expression of a holder’s claim on the credit institution, stored in the electronic payment instrument issued by a credit institution (in the memory of a stored-value card, computer or other equipment). After using an authentication instrument, electronic money may be used for effecting payments to any beneficiary in a position to accept such payments and/or by their holder for withdrawal of cash.
11. ‘Financial coverage’ means availability of funds on a payer's account at the payer’s credit institution necessary for the settlement of a payment instruction or the payer's payment in cash to the credit institution and/or the payer's credit institution's obligation to extend a credit to the payer for the settlement of a payment instruction.
12. ‘Beneficiary’ means a person to which a payer transfers funds.
13. ‘Beneficiary’s credit institution’ means a credit institution must credit the payer’s funds to the account of the beneficiary indicated in the payment instruction maintained at the said credit institution.
14. ‘Customer’ means a payer or a beneficiary.
15. ‘Commission fee’ means the fee payable by the customer to the credit institution for the execution of payment instructions.
16. ‘Credit transfer’ means a transaction initiated by a payer where a payment instruction submitted to the payer’s credit institution is executed to transfer the payer's funds to the beneficiary’s account at a credit institution.
17. ‘Payment’ means the delivery of the payer’s funds to the beneficiary directly in cash or a non-cash transfer via the selected credit institutions. When transferring the funds, the payer and the beneficiary may be one and the same person. Funds shall comprise both cash and non-cash.
18. ‘Payment instruction (payment order)’ means an instruction to a credit institution made by a payer or a beneficiary in writing or by electronic payment instruments to transfer funds to the beneficiary.
19. ‘Provider of a payment instruction’ means a payer or a beneficiary that submits a payment instruction directly to the payer’s credit institution or the beneficiary’s credit institution which forwards the beneficiary’s payment instruction to the payer’s credit institution or forms a payment instruction and submits it to the payer’s credit institution on the instruction by the beneficiary.
20. ‘Acceptance of a payment instruction’ means the moment when the payer’s credit institution assumes the obligation to execute a payment instruction.
21. ‘Payment system’ means the system defined in the Law on Settlement Finality in Payment and Securities Settlement Systems.
22. ‘Payer’ means a person that transfers funds to a beneficiary.
23. ‘Payer’s credit institution’ means a credit institution which is instructed by a payer to execute a payment instruction submitted by the payer or by a beneficiary.
24. ‘Holder-initiated transaction’ means a transaction initiated via an electronic payment instrument by using an authentication instrument (-s) or a transaction initiated without using/presenting an electronic payment instrument, regardless of the use of an authentication instrument, with regard to the settlement of which the holder has not submitted any objections according to the procedure and terms established in the contract concluded between the holder and the credit institution, or the credit institution proves that the transaction has been initiated by the holder.
25. ‘Remote access payment instruments’ means instruments allowing the holder to form electronic instructions to the credit institution regarding the disposal of funds available at its account with the said credit institution. The use of the said instruments (credit institution’s software installed in a holder’s computer, software in a credit institution’s Internet server, telephone communications equipment, a card issued by a credit institution (debit, credit or other) or other instruments) usually requires authentication.
26. ‘Interest rate’ means an arithmetic leverage of average annual interest rates on credits in the national currency extended by commercial banks to residents, published monthly by the Bank of Lithuania.
27. ‘Authentication instruments’ means the signature of a holder of an electronic payment instrument, personal identification number (PIN) assigned to it or another instrument made available by a credit institution (passwords, secret codes, keys, biometric means, etc.), the purpose of which is to prove the identity of the holder of an electronic payment instrument.
28. ‘Intermediary’ means a credit institution which is neither the payer’s credit institution nor the beneficiary’s credit institution, although it participates in the execution of payment instructions.
29. ‘Cross-border credit transfer’ means a credit transfer when funds are transferred via a credit institution or its branch in a certain state to the beneficiary to a credit institution or its branch in another state.
30. ‘Member State’ means a member state of the European Union or the European Free Trade Association.
31. ‘User/Consumer’ means a natural person who concludes a contract with a credit institution on the provision of services for satisfying personal, family or household needs not connected to his/her profession or business. Article
32. Scope of Application of the Law
33. Article 5, paragraphs 7 and 9 of Article 7, Article 10 and Article 12 shall not apply in effecting cross-border credit transfers. Paragraph 2 of Article 6 of this Law shall not apply to credit and debit transfers in the Republic of Lithuania. If the credit institution provides the possibility for a customer to form payment instructions by electronic payment instruments, additional requirements laid down in Articles 17 to 21 shall apply to credit institutions in effecting credit and debit transfers and cross-border credit transfers.
34. The provisions of this Law shall apply to cross-border credit transfers in the national currencies of the Member States and the euro up to the equivalent of EUR 50
35. These transfers shall be effected in order to transfers funds to the beneficiary via a credit institution or its branch in one Member State to a credit institution or its branch in another Member State. Persons other than credit institutions, insurance undertakings, investment companies and financial brokerage firms shall instruct to effect such transfers. Following the requirements set forth in Articles 14, 15 and 16 of this Law, branches of a credit institution of a Member State providing services in different Member States shall be considered independent credit institutions.
36. The provisions of this Law, with an exception of Articles 13 to 16, shall also apply to cross-border credit transfers other than those referred to in paragraph 2 of this Article. The provisions of Articles 13 to 16 of this Law shall apply if the contract between a customer and a credit institution or the operating rules of a credit institution do not establish otherwise.
37. The requirements laid down in Articles 17 to 21 of this Law shall not apply to credit institutions when credit institutions provide electronic payment instruments to other credit institutions, insurance undertakings, investment companies and financial brokerage companies.
38. This Law shall not apply when a collection (debiting) of funds from the payer’s account at the credit institution is enforced according to the procedure established by the Civil Process Code and/or other legal acts. Article
39. Payment Procedure
40. Cash payments shall be effected pursuant to the terms and conditions established by the arrangement between the payer and the beneficiary.
41. Non-cash payments shall be effected pursuant to the procedure established by this Law. CHAPTER II PROCESSING OF CREDIT AND DEBIT TRANSFERS Article
42. General Conditions for the Processing of Payment Instructions
43. Credit institutions shall execute payment instructions of their customers to make credit and debit transfers according to the terms and conditions established by the bank account agreement between a customer and a credit institution and/or by the operating rules of a credit institution. There shall be no terms and conditions in the bank account agreement and the operating rules of a credit institution, which would worsen the customer's position compared to the one established by this Law.
44. Credit institutions may, under a common arrangement, approve the procedure for the processing of payment instructions between credit institutions in the Republic of Lithuania, however, this procedure may not reduce the liabilities of credit institutions to customers set forth in this Chapter of the Law.
45. The contents of a payment instruction shall contain the following required particulars: the amount of funds, its payer and beneficiary, and the accounts of the payer and the beneficiary at the credit institution. Where the payer pays cash to the payer’s credit institution, the payer’s account shall not be specified in the payment instruction. Credit institutions may, under a common arrangement, also establish other particulars of the contents of payment instructions used in the Republic of Lithuania and may establish a uniform form for payment instructions formed in writing. The form and contents of a payment instruction must comply with the requirements laid down by this Law and the operating rules of credit institutions.
46. The contents of payment instructions of buyers of agricultural production shall, beside the particulars specified in paragraph 3 of this Article, contain the particulars set out in the Law on the Settlement of Accounts for Agricultural Production. Article
47. Information on the Processing of Payment Instructions
48. Credit institutions must establish conditions for their customers to get acquainted with clear and easily understandable conditions set out in writing for the execution of payment instructions and, if possible, publish them by electronic means of communication. The aforementioned conditions must contain: 1) the amount of the commission fee payable by the customer for the execution of a payment instruction or the method of calculation and the manner of payment thereof; 2) the time limit within which the payer’s payment instruction must be processed and a specific beginning of the time limit; 3) the time limit within which the beneficiary’s credit institution must submit a payment instruction formed according to the beneficiary’s instruction to the payer’s credit institution; 4) the time limit within which the beneficiary’s credit institution must credit the funds received to the beneficiary’s account; 5) the basis for establishing the exchange rate of foreign currency, if the currency is exchanged during a transaction; 6) the cases and the time limit when the payer or the beneficiary may change or revoke a payment instruction; 7) the time limit within which the customer may submit a complaint to the credit institution and the procedure for the indemnification of damages and the settlement of disputes.
49. Credit institutions shall inform their customers about the processed payment instruction in a clear and easily understandable way in writing or electronically, if the customer does not refuse in writing such information. The aforementioned information shall include: 1) a reference enabling the customer to identify the payment instruction; 2) the amount of the payment instruction; 3) the amount of the commission fee; 4) the exchange rate, if the currency was exchanged during the transaction.
50. If the payer effects a cash payment into the payer's credit institution, credit institutions shall provide the information specified in paragraph 2 of this Article on the request by the customer. Article
51. Obligations of Credit Institutions and Customers in the Processing of Payment Instructions
52. Credit institutions and customers shall follow the authentication procedure.
53. Where the authenticity of a payment instruction, a change in a payment instruction or a revocation of a payment instruction has been verified using the authentication procedure, such instruction shall be deemed submitted by a customer.
54. Paragraph 2 of this Article shall not apply where the customer proves that a payment instruction, a change in a payment instruction or a revocation of a payment instruction received by the credit institution has been provided by a person other than: 1) a present employee of the customer; 2) a person whose relationship with the customer has provided him with a possibility of using the authentication procedure.
55. Where the credit institution proves that the authentication procedure was used by a person that does not have such right through the fault of the customer, a payment instruction, a change in a payment instruction or a revocation of a payment instruction received by the credit institution shall be deemed submitted by the customer and paragraph 3 of this Article shall not apply.
56. The provider of a payment instruction shall be liable for the correctness of particulars of a payment instruction submitted to the credit institution. Where the credit institution and the customer have agreed upon the procedure of error identification in the particulars of a payment instruction and the credit institution, according to this procedure, ought to have identified errors in the particulars of the payment instruction, the credit institution shall be liable for the effects of the execution of the incorrect payment instruction.
57. The payer shall be obliged to provide to the payer’s credit institution the financial coverage for the execution of a payment instruction no later than on the date of the execution of a payment instruction specified in the payment instruction.
58. In the case established by the Law on the Settlement of Accounts for Agricultural Production, a payment instruction submitted by the seller of agricultural production for effecting a debit transfer shall be accepted even if the funds in the payer’s account are not sufficient.
59. The payer’s credit institution may not charge a fee for the cash payment by the payer for the execution of a payment instruction.
60. The payer’s credit institution may not deduct the commission fee for the processing of a payment instruction from the amount of the payment instruction. Where the payer’s credit institution has breached this requirement, it shall transfer the total deducted amount to the beneficiary upon the payer’s request, unless the payer requires this amount to be delivered to it or credited to its account. Article
61. Acceptance or Rejection of a Payment Instruction
62. In effecting debit transfers, upon receipt of the beneficiary’s payment instruction, the beneficiary’s credit institution must ascertain that the payment instruction has all the required particulars and other conditions of the beneficiary’s credit institution have been satisfied, should they be set out.
63. In effecting debit transfers, where the beneficiary’s and the payer’s credit institution is not one and the same institution, the beneficiary’s credit institution shall be obliged to submit a received payment instruction of the beneficiary to the payer’s credit institution within the time limit agreed upon by the beneficiary’s credit institution and the beneficiary. The beneficiary’s credit institution may undertake to notify the beneficiary of the receipt of a payment instruction.
64. In effecting debit transfers, the beneficiary’s credit institution, upon receiving a beneficiary’s payment instruction which does not comply with the requirements set out in paragraph 1 of this Article, must notify the beneficiary thereof and specify the reason on the same banking business day, except where the information available is insufficient to identify the beneficiary.
65. The payer’s or the beneficiary’s payment instruction shall be deemed accepted by the payer’s credit institution, when the payment instruction received by the payer’s credit institution has all the particulars required for its processing, the payer has provided the financial coverage (except the case specified in paragraph 7 of Article 7 of this Law) and the payer’s credit institution has not notified the provider of the payment instruction of the refusal to accept the payment instruction according to the procedure specified in paragraph 5 of this Article. The payer’s credit institution may undertake to notify the payer of the acceptance of the payment instruction.
66. The payer’s credit institution which refuses to accept the payment instruction must send a notification to the provider of the payment instruction in a form agreed upon with the provider of the payment instruction on the rejection of the payment instruction and specify the reason thereof on the same banking business day, except the case when available information is insufficient to identify the provider of the instruction.
67. The payer’s credit institution which receives a payment instruction after the end of the time limit set by that credit institution for the acceptance of such instructions shall have the right to deem that the payment instruction was received on the next banking business day. Article
68. Execution of a Payment Instruction
69. A payment instruction shall be deemed executed when the credit institution credits funds to the account of the beneficiary, if the payer’s and the beneficiary’s credit institution is the same institution. If the payer’s and the beneficiary’s credit institution is not the same institution, a payment instruction shall be deemed executed when the beneficiary’s credit institution receives funds from the payer’s credit institution according to the payment instruction.
70. On the execution of a payment instruction, the payer’s monetary obligation in the amount specified in the payment instruction towards the beneficiary shall terminate.
71. A credit institution shall not be liable for the claims between payers and beneficiaries with regard to settlement duties, when there is no fault by the credit institution. Article
72. Time Limit for the Execution of a Payment Instruction
73. Upon acceptance of a payment instruction the payer’s credit institution shall be obliged to execute it on the same banking business day, if the payer’s and the beneficiary’s credit institution is the same institution. If the payer’s and the beneficiary’s credit institution is not the same institution, upon acceptance of a payment instruction by 12 p.m. the payer’s credit institution shall be obliged to execute it on the same banking business day. If the credit institution accepted a payment instruction after 12 p.m., it shall be obliged to execute it no later than on the next banking business day following the date of acceptance of the payment instruction. If a later date for the execution of the payment instruction is specified therein, the credit institution shall be obliged to execute it on the banking business day indicated in the payment instruction.
74. The time limit referred to in paragraph 1 of this Article shall not apply in the case specified in paragraph 7 of Article 7 of this Law until the payer provides financial coverage.
75. If the payer’s and the beneficiary’s credit institution is not the same, upon receipt of funds from the payer’s credit institution according to the payment instruction the beneficiary’s credit institution shall be obliged to credit the funds to the beneficiary’s account on the same banking business day.
76. If the information (data) about the beneficiary is inaccurate, incorrect or the information provided is insufficient to recognise (identify) the beneficiary, the beneficiary’s credit institution shall notify the payer’s credit institution about it no later than on the next banking business day following the date of end of the time limit for the processing of the payment instruction. If the payer’s credit institution does not specify the information on the beneficiary in two banking business days, the beneficiary’s credit institution shall return funds to the payer’s credit institution. The beneficiary credit institution returning the funds to the payer’s credit institution may deduct the commission fee from the amount of the payment instruction. Article
77. Revocation of a Payment Instruction
78. A payment instruction may be revoked by the provider of a payment instruction only in the event when: 1) the payer’s credit institution and the provider of the payment instruction have agreed that the payment instruction accepted by the payer’s credit institution may be revoked; and 2) the payer’s credit institution received instruction to revoke the payment instruction before the moment of the settlement of the payment instruction.
79. If the payer’s credit institution uses the services of the payment system, the procedure for the revocation of the credit institution’s payment instructions entered into the system shall be established by the rules of that system.
80. In effecting debit transfers, the beneficiary’s credit institution, upon receipt of instruction by the beneficiary to revoke the payment instruction, shall be obliged to submit an instruction to revoke the beneficiary’s payment instruction to the payer’s credit.
81. The payer’s credit institution, upon receipt of an instruction to revoke the payment instruction by the moment specified in point 2 of paragraph 1 of this Article, shall not have a right to process the payment according to the payment instruction received. If, notwithstanding the instruction to revoke the payment instruction, the payment instruction is processed, the payer’s credit institution shall refund to the payer the amount of financial coverage provided for the settlement of the payment instruction. The payer’s credit institution has the right to claim from the beneficiary for the refund of the amount of the processed payment instruction.
82. The rules set out in this Article shall also apply in the event of a change of a payment instruction. Article
83. Non-settlement, Incorrect Settlement or Delayed Settlement of a Payment Instruction
84. If the payer’s credit institution does not executes the accepted payment instruction due to insolvency of the payer’s credit institution or other reasons before the end of the time limit for the settlement of a payment instruction, the credit institution shall be obliged to credit to the payer’s account the amount of financial coverage provided for the settlement of the payment instruction, interest for the period from the date of providing financial coverage to the credit institution to the date of crediting the funds to the payer’s account and the commission fee paid by the payer.
85. If the amount of a payment instruction processed by the payer’s credit institution is lower than the amount of the payment instruction accepted by the payer’s credit institution, the payer’s credit institution shall be obliged to pay the resulting difference to the beneficiary.
86. If the payment instruction is processed, but the amount of the payment instruction processed by the payer’s credit institution is higher than the amount of the payment instruction accepted by this credit institution, the payer’s credit institution shall have a right to require the beneficiary to pay the difference.
87. If the payment instruction is executed, but the payer’s credit institution failed to fulfil the obligations referred to in paragraph 1 of Article 10 in time, the payer’s credit institution shall be obliged to pay interest to the payer for the period of delay. The interest shall be calculated from the amount of the payment instruction for the period from the banking business day following the day when the payment instruction should have been executed in accordance with the time limit set in paragraph 1 of Article 10 to the date of the execution of the payment instruction. If the delay is related to a part of the amount of the payment instruction only, the credit institution shall be obliged to pay interest only for that part of the amount the transfer of which was delayed.
88. The beneficiary’s credit institution that failed to meet the requirement referred to in paragraph 2 of Article 10 in time shall be obliged to pay interest to the beneficiary for the period of delay. The interest shall be calculated from the amount of the payment instruction for the period from the banking business day following the day of receiving the funds by the beneficiary’s credit institution to the date when the funds were credited to the beneficiary’s account. If the delay is related to a part of the amount only, the beneficiary’s credit institution shall be obliged to pay interest only for that part of the amount the crediting of which to the beneficiary’s account has been delayed.
89. Paragraphs 1, 2, 3, 4, and 5 of this Article shall not prejudice other rights of customers and credit institutions that participated in the execution of the payment instruction. CHAPTER III PECULIARITIES OF EFFECTING CROSS-BORDER CREDIT TRANSFERS Article
90. Exclusive Obligations of the Credit Institution On the request of the customer, the credit institution must assume an obligation regarding the exact time limit for the processing of a payment instruction and the exact amount of the commission fee payable by the customer in accordance with the procedure established in the contract with the customer or the operating rules of the credit institution. Article
91. Obligations of Credit Institutions Regarding the Time Limit for the Processing of Payment Instructions
92. The payer’s credit institution shall be obliged to ensure that the accepted payer's payment instruction is processed within the time limit agreed with the payer, if such time limit is agreed upon in accordance with the procedure established in Article
94. Where the agreed time limit is not complied with or in the absence of any such time limit and where the payment instruction has not been processed on the fifth banking business day following the date of acceptance of the payment instruction, the payer’s credit institution shall pay interest to the payer. The interest shall be calculated from the amount of the payment instruction for the period from the banking business day following the end of the agreed time limit or, in the absence of any such time limit, from the sixth banking business day following the day of acceptance of the payment instruction to the date of the execution of the payment instruction. If non-compliance with the agreed time limit is related to a part of the amount of the payment instruction only, then the credit institution shall be obliged to pay interest only for that part of the amount, the transfer of which has been delayed.
95. Where the payment instruction was not executed within the agreed time limit or, in the absence of any such time limit, where the payment instruction was not executed on the fifth banking business day following the date of acceptance of the payment instruction through the fault of an intermediary, the payer’s credit institution may require the intermediary to indemnify damages.
96. The beneficiary’s credit institution shall be obliged to credit the received funds to the beneficiary’s account within the time limit agreed with the beneficiary, if such time limit is agreed upon in accordance with the procedure established in Article
98. Where the agreed time limit is not complied with or in the absence of any such time limit and where on the next banking business day following the day on which the funds were credited to the account of the beneficiary’s credit institution, the funds have not been credited to the beneficiary’s account, the beneficiary’s credit institution shall pay interest to the beneficiary. The interest shall be calculated from the amount of the payment instruction for the period from the banking business day following the end of the agreed time limit or, in the absence of any such time limit, from the second banking business day following the day of receiving the funds at the beneficiary’s credit institution to the date of crediting the funds to the beneficiary’s account. If non-compliance with the agreed time limit is related to a part of the amount of the payment instruction only, then the beneficiary’s credit institution must pay interest only for that part of the amount, the transfer of which has been delayed.
99. No interest shall be payable pursuant to paragraphs 2 and 5 of this Article, if the payer’s credit institution or the beneficiary’s credit institution proves that the failure to comply with the time limit occurred through the fault of the payer or the beneficiary.
100. Paragraphs 2, 5 and 6 of this Article shall be without prejudice to other rights of customers and credit institutions that participated in the processing of the payment instruction. Article
101. Requirements to Credit Institutions Regarding the Deduction of the Commission Fee for the Processing of a Payment Instruction
102. The payer’s credit institution, an intermediary and/or the beneficiary’s credit institution shall have to transfer the total amount indicated in a payment instruction, if the payer does not indicate that the commission fee for the execution of the payment instruction has to be fully or partly paid by the beneficiary. If the payer indicates that the commission fee for the execution of the payment instruction will be fully or partly paid by the beneficiary, the beneficiary’s credit institution, on crediting the funds to the beneficiary’s account, shall be obliged to indicate the amount deducted from the beneficiary in the information indicated in paragraph 2 of Article
104. The beneficiary’s credit institution may not charge a fee for the crediting of funds to the beneficiary’s account.
105. Paragraphs 1 and 2 of this Article do not affect the right of the beneficiary’s credit institution to claim the fee from the beneficiary for the administration of its account according to the bank account agreement. However, the beneficiary’s credit institution may not charge such fee for the administration of the beneficiary’s account, the setting of which would violate the requirements of paragraphs 1 and 2 of this Article.
106. If the payer’s credit institution or an intermediary deducted the commission fee from the amount of a payment instruction in violation of the requirement laid down in paragraph 1 of this Article, the payer’s credit institution shall, on the payer’s request, have to transfer the full deducted amount to the beneficiary, if the payer does not request this amount to be delivered to it or credited to its account.
107. If an intermediary deducted the commission fee in violation of the requirement set out in paragraph 1 of this Article, it shall have to transfer the full deducted amount to the payer’s credit institution or, if the payer’s credit institution so requests, to the beneficiary.
108. If the requirement to execute the payer’s payment instruction was violated through the fault of the beneficiary’s credit institution, it shall be responsible for returning the full incorrectly deducted amount to the beneficiary. Article
109. Requirement for Credit Institutions to Return the Funds if the Payment Instruction Was Not Processed
110. If, before end of the time limit agreed between the payer’s credit institution and the payer or, in the absence of any such term, before expiry of the time limit for the execution of the payer’s payment instruction accepted by the payer’s credit institution laid down in paragraph 2 of Article 14, the payment instruction was not executed, the payer’s credit institution must, on the request of the payer and without prejudice to the right of the payer to make other claims, credit the following to the payer’s account: 1) the amount of the payment instruction in the payment currency up to the equivalent of EUR 12 500; 2) interest calculated from the amount of the payment instruction for the period from the acceptance of the payment instruction to the date of crediting the funds to the payer’s account; 3) the commission fee paid by the payer.
111. The payer’s credit institution must credit the amounts specified in paragraph 1 of this Article to the payer’s account no later than within 14 banking business days following the date of submitting the payer’s request, if the payment instruction is not executed in that time.
112. The payer may submit a request to credit the amounts specified in paragraph 1 of this Article to its account only after expiry of the time limit agreed between the payer’s credit institution and the payer or, in the absence of any such time limit is not laid down, after expiry of the time limit for the execution of the payment instruction established in paragraph 2 of Article
114. The requirements to the payer’s credit institution set out in paragraph 1 of this Article shall also apply to the intermediaries. Upon acceptance of a payment instruction, an intermediary shall be obliged to refund the amount of the payment instruction, including the related costs and interest, to the credit institution which instructed it to execute the payment instruction. If the payment instruction was not executed due to errors or incomplete particulars in the instructions submitted by the said credit institution, the intermediary shall make reasonable efforts to return the amount of the payment instruction to the said institution.
115. The provisions of paragraph 1 of this Article shall not be applied, if the payment instruction was not processed due to the fault of the intermediary selected by the beneficiary’s credit institution. In this case, the beneficiary’s credit institution shall be obliged to pay to the beneficiary the amount of the payment instruction in the currency of the payment up to the equivalent of EUR 12
117. The provisions of paragraph 1 of this Article shall not be applied, if the payment instruction was not executed due to an error or incomplete particulars in the payment instructions of the payer submitted to the payer’s credit institution or if the payment instruction was not executed by the intermediary specifically selected by the payer. The payer’s credit institution or another credit institution, which participated in the execution of the payment instruction, shall make reasonable efforts to return the amount of the payment instruction. The payer’s credit institution shall be obliged to credit the recovered amount to the payer’s account. However, when returning the recovered amounts credit institutions shall not be obliged to return the commission fee and the interest accrued, and may deduct the costs related to the recovery of funds. CHAPTER IV ELECTRONIC PAYMENT INSTRUMENTS Article
118. Contract between the Credit Institution and the Customer Regarding the Use of Electronic Payment Instruments Customers may submit payment instructions regarding the funds available at their account by electronic payment instruments. Customers and credit institutions shall have to conclude in writing or other equivalent form a contract for the issue and use of electronic payment instruments for the disposal of the funds available at their account. Article
119. Communication of Information on the Terms of the Contract Regarding the Issue and Use of Electronic Payment Instruments
120. When concluding the contract for the issue and use of electronic payment instruments, credit institutions shall have to inform potential holders about the conditions for the issue and use of electronic payment instruments and, if the conditions are not discussed in the contract, to provide them to the holder within reasonable time limit prior to issuing an electronic payment instrument. Clear and easily understandable conditions must be provided in writing or electronically.
121. The contract for the issue and use of electronic payment instruments shall contain: 1) a description of the electronic payment instrument and an indication of the time of the day or night within which the holder may use the instrument, including, if necessary, the communication, technical and software requirements; 2) an indication of the amount of any initial and regular fees, any commission fees and other charges payable by the holder, including the interest rate on a loan granted by the credit institution for the holder to effect payments, and the manner of its calculation; 3) an indication of the time limit, if it is known to the credit institution, during which the funds will, after the initiation of a transaction, be debited from the holder’s account at the credit institution or credited to it; 4) the time limit during which the holder may file objections regarding a transaction effected and the procedure for the investigation of complaints regarding the indemnification of damages; 5) the procedure and the manner of submission by the holder of a notification to the credit institution or the entity specified by it in the cases laid down in subparagraph 2 of paragraph 1 of Article 20; 6) information on the cases and the time limit when the holder may revoke a payment instruction formed by means of an electronic payment instrument.
122. If the electronic payment instrument is used for effecting transactions abroad, the following additional information shall be indicated: 1) the amount of any fees, the commission fee and other payments for transactions in foreign currency charged by the credit institution; 2) the basis for setting the exchange rate and the date of its setting. Article
123. The Provision of Information on the Use of an Electronic Payment Instrument
124. The credit institution issuing an electronic payment instrument must, within the time limit laid down in the contract, provide to the holder clear and easily understandable information in writing or electronically on transactions effected by means of electronic payment instruments. This information shall include: 1) the contents and date of the transaction and, if applicable and possible, the place of using the instrument; 2) the amount debited from the holder’s account during the transaction in the currency of the account and, if applicable, the amount in the currency of payment; 3) any fees, the commission fee and other payments charged for the transactions effected; 4) the exchange rate, if currency was exchanged during the transaction. Article
125. The Obligations of Credit Institutions Issuing Electronic Payment Instruments and the Holders of These Instruments
126. The credit institution issuing electronic payment instruments, shall: 1) only disclose the authentication instruments provided to the holder of the electronic payment instrument; 2) accept the holder’s oral and/or written notification or specify a person who will accept such a notification in case of: the loss of the electronic payment instrument in the event of overtaking by other person; the loss of the electronic payment instrument or the inability of the holder to possess it due to other reasons (hereinafter referred to as "the loss"); the holder’s suspicion that the authentication instruments provided to the holder do not ensure security of transactions; transactions detected by the holder in a statement or other information provided that were not initiated by it or were effected incorrectly; 3) accept notifications as defined in subparagraph 2 of this paragraph at any time of day or night. If the holder has made an oral notification, the credit institution shall have to provide the holder with the possibility of proving that he/she has made such a notification; 4) upon receipt of a notification referred to in subparagraph 2 of this paragraph, take action to terminate any further use of the electronic payment instrument; 5) in any dispute with the holder, provide evidence that the transaction was correctly recorded in the accounts and was not affected by technical or other faults; 6) not send by post the electronic payment instrument not ordered by the holder, except the case when the credit institution replaces the electronic payment instrument owned by the holder.
127. The credit institution which, during the period of validity of the electronic payment instrument, decided to offer a change in the terms and conditions of the contract for the issue and use of the electronic payment instrument shall notify the holder thereof in advance in the manner agreed between the credit institution and the holder and specify the period of no less than 30 days for reply.
128. The provision laid down in paragraph 2 of this Article regarding the term of 30 days for reply shall not be applied in the event of a change of the interest rate on the credit institution’s loan to the holder for effecting payments, and the new interest rate shall come into effect from the date specified in the notification. In this event, without affecting the right of the holder to terminate the contract, the credit institution shall immediately inform the holder (individually) about the intended change of the interest rate.
129. Transactions effected by means of electronic payment instruments and the holder’s notifications referred to in subparagraph 2 of paragraph 1 of this Article, shall be recorded by credit institutions using procedures and means which ensure safe and reliable reproduction of recorded information and prevent against the possibility of forging the information. Credit institutions shall keep the registered information and any documents relating to financial transactions of electronic payment instruments in compliance with the retention periods for accounting documents set by the legal acts of the Republic of Lithuania.
130. Credit institutions which entitle the holder to use the software as an electronic payment instrument shall: 1) train or otherwise explain the usage of the software and inform about the risks related to security of the software; 2) provide the holder with a possibility of recording each financial transaction initiated by it and/or obtaining (printing) the confirmation that the transaction was effected immediately after effecting the transaction and to use it as an evidence in any dispute with the credit institution concerning the effected transaction. Any transaction shall be identifiable in a unique way; 3) implement measures requiring the holder to additionally confirm a transaction initiated by it, if the amount of the transaction exceeds the highest amount set by the credit institution for which such a confirmation is not required; 4) have a possibility of identifying and recording events or actions related to the breach of security of the software and relevant information (the time and manner of use, etc.), and notify the holder of such possibility; 5) provide the holder with a possibility to assess at any moment the condition of the security measures, when security is ensured by special software.
131. Credit institutions which issue electronic money instruments shall: 1) specify the highest allowed balance of electronic money stored on the instrument; 2) have a possibility to observe (monitor) the electronic money balances stored on the instruments, in order to be able to compare them with the funds prepaid by holders of instruments and paid out to beneficiaries; 3) provide the holder with a possibility of verifying the last five transactions effected by means of the instrument and the balance of electronic money stored thereon. 4) upon request from the holder, convert the electronic money stored on the instrument to cash of the same currency at nominal value.
132. A holder of an electronic payment instrument shall: 1) use an electronic payment instrument in compliance with the terms and conditions for the issue and use of an electronic payment instrument; 2) immediately notify a credit institution or its designated person in the cases specified in subparagraph 2 of paragraph 1 of this Article; 3) protect the electronic payment instrument and the authentication instruments issued by a credit institution; not enter personal identification codes and other codes and passwords provided by the credit institution on the electronic payment instrument or items kept together with it; 4) not revoke a payment instruction submitted by an electronic payment instrument, with the exception of the cases, when a credit institution and a holder of an electronic payment instrument have agreed on the possibility to revoke the payment instruction or when the payment instruction amount was not specified when the holder submitted the payment instruction. Article
133. Principles of Establishing Civil Liability The contract between a credit institution and a holder of an electronic payment instrument shall specify in detail the civil liability of the parties for the failure to comply with the contractual obligations. In establishing the liability of the parties, the following principles must be complied with: 1) the damage related to the loss of the electronic payment instrument or the disclosure of the authentication instruments provided shall be borne by the holder. The damage resulting after the moment of providing the notification as defined in subparagraph 2 of paragraph 1 of Article 20 shall be borne by the credit institution, with the exception of the case when it is proved that the damage resulted from malicious intent or gross negligence of the holder; 2) pursuant to subparagraph 1 of this Article, the amount of the damage borne by the holder in connection with the loss of the electronic payment instrument before the moment of submitting the notification as defined in point 2 of paragraph 1 of Article 20 shall not exceed the equivalent of EUR 150 in litas. If it is proved that the damage resulted from malicious intent or gross negligence of the holder and breaching the provisions of paragraph 7 of Article 20, the limit of damages borne by the holder of the EUR 150 equivalent in litas shall not be applied to the holder; 3) the credit institution shall indemnify the holder for the damages resulting from the use of the electronic payment instrument due to transactions that have not been effected or incorrectly effected not due to the fault of the holder, transactions that have not been initiated by the holder, errors and inaccuracies attributable to the credit institution managing the holder’s account; 4) the credit institution shall indemnify the holder of electronic money for the damage in connection with the loss of the electronic money and the damage resulting from the holder’s transaction that has been effected with faults that arose due to improper operation of the software of the credit institution or the instrument provided, if the credit institution does not prove that improper operation has been caused by the holder intentionally. CHAPTER V FINAL PROVISIONS Article
134. Settlement of Disputes between Customers and the Credit Institution
135. Requests (complaints) of customers regarding the actions of the credit institution which breach the requirements of this Law and/or legitimate interests of the customer shall be investigated by the credit institution. The credit institution shall be obliged to investigate written requests (complaints) of customers and reply to the customer in writing within 30 days of the receipt of the request. Requests of customers shall be investigated by credit institutions free of charge.
136. In the event of failure to reach an agreement between the credit institution and the customer, the customer shall have the right to apply to the court in the manner prescribed by the law of the Republic of Lithuania. Article
137. Settlement of Disputes between the Consumer and the Credit Institution
138. If the reply of the credit institution to the request (complaint) of the consumer indicated in paragraph 1 of Article 22 of this Law does not satisfy the consumer or it has not been replied to him, the consumer shall have the right, no later than within six months from the day of filing the consumer’s request (complaint) to the credit institution, to apply to the National Consumer Rights Protection Board under the Ministry of Justice (hereinafter referred to as the National Consumer Rights Protection Board). The National Consumer Rights Protection Board shall investigate complaints according to the procedure established by it.
139. The National Consumer Rights Protection Board shall be obliged to investigate the consumer’s complaint within four months from the date of filing the complaint. The National Consumer Rights Protection Board shall have the right to invite to its meetings representatives of the Bank of Lithuania and other state institutions, credit institutions and other persons whose competence or interests are related to the issue under consideration.
140. Resolutions adopted by the National Consumer Rights Protection Board regarding the indemnification of the damage shall be compulsory to the credit institution, if the credit institution has not raised an objection to the National Consumer Rights Protection Board in one month from the day of adopting the resolution.
141. The National Consumer Rights Protection Board shall investigate complaints free of charge.
142. If an agreement cannot be reached between the credit institution and the consumer, the consumer shall have the right to apply to the court in the manner prescribed by the law of the Republic of Lithuania. Article
143. Interest The amount of interest payable by the credit institution to the customer for the default on its obligations as defined by this Law shall be calculated on the basis of the interest rate that was valid before the month when the obligation of the credit institution to pay interest arose. The credit institution and the customer may agree upon a different interest rate, however, it may not be lower than defined in this Law. I promulgate this Law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC OF LITHUANIA VALDAS ADAMKUS Annex to the Law No. VIII-1370 of the Republic of Lithuania of 28 October 1999 LEGAL ACTS OF THE EUROPEAN UNION IMPLEMENTED
144. Directive 97/5/EC of the European Parliament and of the Council of 27 January 1997 on cross-border credit transfers.
145. Commission Recommendation 97/489/EC of 30 July 1997 concerning transactions by electronic payment instruments and in particular the relationship between issuer and holder.