Custody Agreement
1. What custody is
1.1Custody is HBC holding a finished product you own, on your behalf, in a secure vault. It is a bailment: HBC holds the product for you and acquires no interest in it. You remain the owner throughout.
1.2Custody is available for finished products that have been fully paid, made and recorded to you. It is not available for silver under an open plan; that silver is held in segregated customer stock under the plan terms.
2. Where your product is held
2.1Products in custody are held in HBC Vaults. An HBC Vault is a secure vault facility operated by HBC or, under contract with HBC, by a licensed commercial bank. HBC may move a product between HBC Vaults; it remains recorded to you throughout. Vault locations are not published, for security; HBC will confirm the location of your product on request in store.
2.2Each product in custody is identified to you by serial number (bars) or by product and weight (coins) and shown in your account with its PAN bill number, its Certificate of Authenticity and HBC's ownership record.
3. Starting custody
3.1Custody starts when you have chosen "Keep with HBC", accepted this Agreement, and paid any custody charge due. Starting custody ends the free eight-week collection period for that product.
3.2You may choose a custody period of one to twelve months and extend it before it ends.
4. Charges
4.1The custody charge is in the Fees and Charges Schedule (0.006% per day of the product's metal value). It is currently waived under HBC's launch offer; HBC will publish an end date at least 30 days before the waiver ends, and days waived are never charged later. When charged, it is paid in advance for the period chosen. A period ended early is not refunded.
4.2If a custody period ends and you have neither collected nor extended, the overdue collection charge in the Schedule accrues from the day after the period ends until you collect or extend. It is settled before collection or sale and is never deducted from your product. Accrued charges on a product are capped at the amount stated in the Schedule; once the cap is reached, no further charge accrues and section 9 applies.
5. Insurance
5.1Products in HBC custody are insured against loss, theft and damage under HBC's insurance policy. The insured value of each product is the lower of (a) the metal value at the price you paid and (b) the metal value at HBC's published selling rate on the date of loss. Making charges, fees and levy are not insured.
5.2Insurance is HBC's cover for its own liability to you. If your product is lost or damaged while in custody, HBC replaces it with an identical product or, where that is not possible, pays you the insured value. HBC's liability under this clause is not limited to any insurance recovery.
6. Your rights while in custody
6.1You may at any time, within the published windows:
- collect the product under the Collection and Handover Policy;
- sell it to HBC under the Sell to HBC Policy (from the app, proceeds are paid as HBC Credits);
- gift it to another verified member under the Gifting Policy.
6.2A product in custody is not a tradeable balance and cannot be used as collateral with HBC.
7. HBC's duties
7.1HBC keeps your product separate from its own stock, recorded to you, and does not use, pledge, lend or sell it. HBC reconciles custody holdings daily and includes them in its annual audited physical count.
8. Death of the owner
8.1On the death of a customer, HBC releases the product to the person entitled under Nepalese succession law, on production of the death certificate and the legal documents HBC reasonably requires. Custody charges stop accruing from the date HBC is notified of the death.
9. Uncollected products
9.1A product left in custody with charges unpaid for more than twelve months after the custody period ended is treated as uncollected. HBC will write to you at your last known address and email at least three times over a further six months. If you do not respond, HBC continues to hold the product for you. HBC will not sell it, take ownership of it or dispose of it without a court order or your written instruction. Charges stop at the cap in the Schedule; the product is released on payment of the capped charges.
10. Ending custody
10.1Custody ends when the product is collected, sold to HBC or transferred as a gift. HBC issues a handover record or settlement document and closes the custody record.