Whole Section

  • 11.3 Termination of Settlement Bank By CDP

    • 11.3.1

      Without prejudice to Rule 11.2, CDP may, at any time, by notice in writing to the Settlement Bank, terminate, suspend or withhold the Settlement Bank's participation in DVP Settlement (such termination, suspension or withholding to take effect immediately upon issue of such notice unless otherwise specified in the notice) if:

      (a) CDP issues an SB Default Notice concerning the Settlement Bank pursuant to Rule 11.1.1;
      (b) The Settlement Bank has committed any breach of these DVP Rules and, where such breach is remediable, the Settlement Bank has failed within seven (7) days of receipt of written notice from CDP to remedy the same;
      (c) The Settlement Bank is insolvent or unable to pay its debts as they fall due, compounds with or negotiates for any composition with its creditors generally or permits any judgment against it to remain unsatisfied for seven (7) days;
      (d) Any distress, attachment, execution or other legal process is levied or enforced or served against the Settlement Bank or its property;
      (e) Any step is taken by the Settlement Bank or any person for the liquidation or winding-up of the Settlement Bank or for the appointment of a liquidator (including a provisional liquidator), receiver, judicial manager, trustee, administrator or similar officer of the Settlement Bank or over all or any of its property or if CDP considers in its absolute discretion that such proceedings against the Settlement Bank are imminent or likely; or
      (f) CDP receives an SB Termination Notice from the Clearing Bank concerning the Settlement Bank pursuant to Rule 11.4.1; or
      (g) CDP, at its sole discretion, deems that the Settlement Bank has insufficient resources or capital to discharge any obligations it may incur to CDP.

      Amended on 25 February 201125 February 2011.

    • 11.3.2

      Notwithstanding Rule 11.3.1, CDP may (without assigning any reason whatsoever) terminate the Settlement Bank's participation in DVP Settlement by giving at least thirty (30) days' prior written notice to the Settlement Bank.

    • 11.3.3

      The Settlement Bank shall inform CDP immediately in writing of the occurrence of any of the event mentioned in Rules 11.3.1(b) to (e) of these DVP Rules.

    • 11.3.4

      CDP shall, immediately upon the issue of a notice in writing to the Settlement Bank pursuant to this Rule 11.3 to terminate, suspend or withhold the Settlement Bank's participation in DVP Settlement, or upon the receipt of a notice in writing from the Principal pursuant to Rule 11.5, send a copy of the said notice to the Clearing Bank.