A. What is a changing code specimen signature?
A "changing code specimen signature" is a series of encrypted digits created by typing in a number of elements on a voucher of clearing into a special calculator. It can substitute traditional seals as valid payment instructions by issuer of the vouchers. Bank vouchers of clearing have greatly diversified elements, so the encrypted digits created by the calculator are also changing without any pattern, and is therefore called "changing code specimen signature".

B. Advantages of changing code specimen signature over traditional seals

Traditional Seals	Changing Code Specimen Signature
1.       Easily forged, altered or lost 2.       Hard to discern 3.       Honored only at account-hosting bank 4.       No universal accession to account 5.       Poor secrecy and security 6.       Not conducive to future development	1.       Forge and alteration impossible 2.       Verifiable through machine decryption 3.       Applicable to any service outlet 4.       Universal accession to account if networking available 5.       Highly secret and secured 6.       Very promising for future development

C. Why did we adopt "Changing Code Specimen Signature"?
1.  To protect the clients' fund from being swindled by mal-intent persons;
2.  To offer a convenient, quick and safe channel for settlement;
3.  To avail of modern settlement instruments like universal accession to account
     and telephone banking services.

D. Features of China Merchants Bank’s Changing Code Specimen Signature

1. High security
 The China Merchants Bank' s Changing Code Specimen Signature system has adopted the most advanced IC card in the world; series of changing codes are created through a set of scientific arithmetic for encryption, and can by no means forged by unauthorized parties.

2. Universal Accession
 The China Merchants Bank' s IC card changing code specimen signature system is the only one of its kind in the country that features universal accession. A China Merchants Bank IC Card is honored by any changing code unit at the China Merchants Bank.

3. Multifunction

a.	changing code calculation;
b.	changing code unit, IC card, and password can be kept by different persons, which facilitate financial supervision;
c.	a user can change his or her password any time to ensure its secrecy;
d.	in case the signatory is out of town, he or she can set an authorization code to limit other people' s authority to use the account as well as the fund in it. The IC Card can thus be handed to his or her deputy for temporary administration until he or she comes back and revokes the authorization.
e.	The special calculator is also capable of doing ordinary computation work.
f.	All operation prompts are in English, making it easier for your use.

E. What is universal accession to bank settlement service?
Universal accession to bank settlement service refers to the fact that institutional clients of the China Merchants Bank, as long as it holds deposit account in any one of the bank’s service outlet, its settlement request is also honored in any other service outlets of the bank. If both parties concerned in a settlement have opened their deposit account at the China Merchants Bank, then their fund will be transferred between their accounts instantly with a single transaction, and this very transaction will be recorded on both accounts.

F. Which settlement services are covered by the universal accession?
1.  Cash collection and withholding (settlements in large amounts are limited to 
     over-the-counter mode at the service outlet where you opened your accounts)
2.  Transfer of account collection and withholding;
3.  Transfer of account through T/T and M/T
4.  Signing of bank draft;
5.  Third bank bookkeeping
6.  Collection and collection with acceptance.

G. What are some major advantages of universal accession?

1.	Accelerates cash turnover in enterprises, improves cash use efficiency: the bank has adopted an advanced electronic settlement approach, which reduces the fund transit time to zero, and the beneficiary may use the cash immediately after the settlement.
2.	Convenient clearing at the nearest service outlet: the clients are allowed to handle the settlement affairs at the service outlet that is the nearest to their office, which saves much of the trip distance. This also brushes away the clients’ worry about certificate of payment, validity of signature and seals, as well as possible insufficient fund on account.
3.	Improve banks' settlement service quality: the adoption of changing code specimen signature system literally eliminates the possibility for mistaken account number and overdraft of deposit. The human errors have been greatly reduced.

H. Which clients are qualified to apply for universal accession service?
All institutional clients including government department, organizations, enterprises and self-employed businessperson who have opened deposit account and have applied to use changing code specimen signatures are qualified to avail of our universal accession services.

I. How should I apply to use changing code specimen signature?

1.	Proceed to the service outlet where you opened your deposit account, and claim "China Merchants Bank Changing Code Specimen Signature Application Form" and "China Merchants Bank Changing Code Specimen Signature Service Agreement."
2.	Please fill in the application form and agreement, your account opening service outlet will examine and approve your application, and finish the rest of the procedure for you.
3.	Return to the account-opening service outlet again on appointment to claim your changing code calculator and IC Card.

J. Are there any new requirement on the vouchers of clearing after I start to use the changing code specimen signature?
The changing code specimen signature is composed of 10 digits. When you prepare vouchers of clearing, please fill the 10 digits in a line of small boxes, starting from the very left one, and then put a seal on the voucher (official seal, administrative seal or financial seal of your company) and legal representative' s name stamp (or legally authorized person' s name stamp). The signatures and seals, however, do not serve as certificate of payment by the bank.

K. What is the principle for account keeping under the circumstance of universal accession?
The principle for account keeping under the circumstance of universal accession is that the account number is the only recognized identification of the account. So please double-check the account numbers of the beneficiary and payer when preparing the vouchers so as to ensure that the bank precisely transfers the funds.

L. With universal accession of account, how can I claim my return receipt and statement of account? And how can I examine my account?

·	With the practice of universal accession of account, the China Merchants Bank follows a principle of no returning of voucher, which means that regardless of the service outlets that a client approaches to for universal accession of account service, the clearing vouchers do not return to the service outlet where the client opened its account. So the client may not be able to find the original return receipt at his or her account-hosting bank. On most of the occasions, the clients are able to claim their original return receipts as they avail of financial services. In case the return receipts are not immediately available, the clients may claim a "return receipt" in a later time at their respective account-hosting bank bearing the identical contents on the original receipt.
·	As for statement of account, the clients can still claim them at their account-hosting bank.
·	Given the privilege of universal accession of account, the clients are still able to inquire their own account information through Telephone Banking, On-line Corporate Banking, Client Terminals or over-the-counter at the account-hosting bank.

M. If I have opened accounts at several service outlets, how should I apply for the changing code calculator?
Even if a client has opened accounts at several service outlet, a single calculator will be adequate, and there is no need to apply for more. However, there must be an IC card associated to each client number, and an IC card can at the most accommodate three account numbers For any client who has applied for a changing code calculator at a service outlet of the China Merchants Bank, he or she only need to apply for a new IC card at the other service outlets.

N. What should I do in case of lost or damaged calculator and IC Card?
In case of damaged calculator or IC Card, the client should proceed as soon as possible to the original issuing service outlet and apply for replacement. Upon application, the client should return the damaged calculator and IC Card.
In case of lost IC Card, the client should immediately report the loss to any service outlet of the Bank. However, the Bank should not be held liable for any loss to the client’s account prior to the report of loss.

O. Given the privilege of changing code specimen signature, how institutional clients assume reciprocal restricting mechanism, and improve financial management?
1.  Person in charge of financial department holds the password;
2.  One of the accountant or cashier holds the IC card;
3.  A separate accountant holds voucher and seal/stamp for settlement.