956 NEW ZEALAND GAZETTE, No. 35 11 FEBRUARY 2005

“Capital” in relation to an Overseas Bank or Overseas Banking Group, means the amount of capital held by the Overseas
Bank or Overseas Banking Group, determined in accordance with the requirements of the authority having the power to
impose minimum capital requirements on that Overseas Bank or Overseas Banking Group in its country of domicile.

“Commodity Instrument” has the same meaning as in FRS-33, as amended from time to time.

“Company” has the same meaning as in section 2 of the Companies Act 1993, and includes an overseas company within
the meaning of section 2 of the Companies Act 1993.

“Conditions of Registration” in relation to a Registered Bank means the conditions of registration imposed on that
Registered Bank by the Reserve Bank pursuant to section 74 of the Act.

“Counterparty” has the same meaning as in FRS-33, as amended from time to time.

“Credit Exposure” means the amount of the maximum loss that a party to a contract could incur as a result of the
Counterparty to that contract failing to discharge its obligations, without taking into account the value of collateral,
guarantees, indemnities, other support arrangements, and any potential recoveries, where the maximum loss in relation to:

(a) a market related contract means the credit equivalent amount of the contract determined in accordance with
the Reserve Bank document entitled Capital Adequacy Framework (BS2) as amended from time to time;

(b) any other contract means the full value of the contract:
provided that, for the purposes of this definition, a Financial Liability and a Financial Asset may be offset if to do so
would accord with generally accepted accounting practice as defined in the Financial Reporting Act 1993.

“Credit Risk” has the same meaning as in FRS-33, as amended from time to time.

“Currency Risk” has the same meaning as in FRS-33, as amended from time to time.

“Debt Security”, in relation to a Registered Bank, means any interest in or right to be paid money that is, or is to be,
deposited with, lent to, or otherwise owing by, that Registered Bank (whether or not the interest or right is secured by a
charge over any property).

“Director” means a person occupying the position of director of the Overseas Bank by whatever name called who
whether by himself or herself, or in conjunction with other directors acting as a board of directors, has the powers
necessary for managing, and for directing and supervising the management of, the business and affairs of the Overseas
Bank.

“Direct Banking Account” means a bank account held at a branch that is not normally physically accessible by the
customers of that branch.

“Disclosure Statement”, in relation to a Registered Bank, means a document Published by that Registered Bank in terms
of the Registered Bank Disclosure Statement (Full and Half-Year - Overseas Incorporated Registered Banks) Order 2005.

“Equity” has the same meaning as in the Institute of Chartered Accountants of New Zealand Statement of Concepts for
General Purpose Financial Reporting as amended from time to time.

“Equity Exposure” means the amount of the change in the economic value of equity instruments that are Financial Assets
and Financial Liabilities of the Banking Group in a single currency, which would occur as a result of a change in the
price of equity instruments in that currency.

“Equity Risk” means the risk arising from changes in the prices of equity instruments.

“Fair Value” has the same meaning as in FRS-33, as amended from time to time.

“Financial Asset” has the same meaning as in FRS-33, as amended from time to time.

“Financial Instrument” has the same meaning as in FRS-33, as amended from time to time.

“Financial Liability” has the same meaning as in FRS-33, as amended from time to time.

“Financial Reporting Group” means the New Zealand Business of all the members of the group (as that term is defined in
section 2 (1) of the Financial Reporting Act 1993) that comprises a reporting entity that is the Overseas Bank and its
subsidiaries, prepared as if the members of the group were companies formed and registered in New Zealand.

“First Quarter Accounting Period” means, subject to the application of subclause 2 (6), the first three month period of an
Accounting Period.

“Foreign Currency Exposure” means the amount of the change in the economic value of the Financial Assets and
Financial Liabilities of the Banking Group in a single foreign currency which would occur as a result of a change in the
rate of exchange applicable to that foreign currency.

“General Provision” has the same meaning as in FRS-33, as amended from time to time.

“General Short Form Disclosure Statement” means that part of a Short Form Disclosure Statement which contains the
information prescribed in Part III and Part IV of this Order.

“Group of Closely Related Counterparties” has the same meaning as in FRS-33, as amended from time to time.

“Immediate Relative”, in relation to any person, means their spouse, civil union partner, or de facto partner (as defined in
the Property (Relationships) Act 1976), and any parent, brother, sister or child, in each case whether or not adoptive,
of that person or of their spouse, civil union partner, or de facto partner.

“Impaired Asset” means a Non-Accrual Asset, a Restructured Asset, or an Asset Acquired Through the Enforcement of
Security.

“Independent Director” means a Director who is not an employee of the Overseas Bank, and who is not a director,
trustee, or employee of any holding company of the Overseas Bank, or any other entity capable of controlling or
significantly influencing the Overseas Bank.

“Insurance Business” has the same meaning as in the Conditions of Registration.

“Interest Rate Exposure” means the amount of the change in the economic value of the Financial Assets (excluding
equity instruments) and Financial Liabilities (excluding equity instruments) of the Banking Group in a single currency
which would occur as a result of a change in interest rates in that currency.