Whole Section

  • 8.5 Setting Principal Net Debit Cap to Zero

    • 8.5.1

      In the event that the Settlement Bank desires to prevent a Principal from submitting further receiving instructions, the Settlement Bank may set the Principal Net Debit Cap to zero. When the Principal Net Debit Cap has been set to zero, any further instructions accepted for matching and validation shall be restricted to only delivery instructions. Whilst the Principal's net debit balance will be reduced by the subsequent matching and validation of delivery instructions, further receiving instructions submitted shall not be matched and validated.

      Amended on 3 October 20093 October 2009.

    • 8.5.2

      Notwithstanding that at the time the Principal Net Debit Cap has been set to zero the Principal has a net credit balance, further receiving instructions submitted by the Principal shall not be matched and validated. In the event that the Settlement Bank does not desire to prevent the Principal from making further submissions for receiving instructions where the Principal has a net credit balance at the time of adjustment of the Principal Net Debit Cap, the Settlement Bank should set the Principal Net Debit Cap to a value above zero.

      Amended on 3 October 20093 October 2009.

    • 8.5.3

      Where the Principal Net Debit Cap has been set to zero, any subsequent receiving instructions for matching and validating in advance submitted by the Principal shall not be accepted. Only subsequent delivery instructions submitted by the Principal shall be matched and validated. Rules 8.5.1 and 8.5.2 shall apply, mutatis mutandis, to subsequent submissions of receiving instructions.

      Amended on 3 October 20093 October 2009.