Whole Section

  • 8.8 Termination of Payment Facilities to Principal by the Settlement Bank

    • 8.8.1

      Where the Settlement Bank has terminated any payment facilities granted to the Principal or where the Settlement Bank ceases to act as the Principal's agent for the purposes of DVP Settlement, the Settlement Bank shall notify CDP by a written notice (the "Termination Notice"). The Termination Notice shall be deemed to take effect on the same day in the week following the day of receipt by CDP of the said Notice but shall not affect any accrued rights or liabilities of the Settlement Bank to CDP. If the day on which the Termination Notice is deemed to take effect is a public holiday, then the Termination Notice shall be deemed to take effect on the following Settlement Day.

    • 8.8.2

      The Settlement Bank shall set the Principal Net Debit Cap of the Principal whom it is terminating to zero on the date of the issue of the Termination Notice, failing which the Settlement Bank shall be liable for all DVP transactions submitted by the Principal (advance or otherwise) up to the date on which the Termination Notice is to take effect.

      Amended on 3 October 20093 October 2009.