2.3 Payment and Settlement Facility Requirements of Principals
The payment facility requirements of Principals are that:(a) the Principal has appointed a Settlement Bank who will be its agent for the purposes of making and receiving payments in DVP Settlement; and(b) the Principal furnishes a duly executed Letter of Guarantee and Indemnity from the Settlement Bank to CDP in the form as set out in Annex AAnnex A that the Settlement Bank will guarantee the payment of and indemnify CDP against the non-payment of the Net Debit Balance of the Principal on any Settlement Day in accordance with these DVP Rules.
Subject to Rule 2.3.4, the settlement facility requirements of Principals are that the Principal has appointed one or more Depository Agents who:(a) will be its agent or agents for the purposes of Rule 4; and(b) is approved for admission to participate in DVP Settlement as a Depository Agent for the Principal.
Unless approved by CDP, the Principal may not appoint more than one Depository Agent to be its agent for the purposes of Rule 4.
Where the Principal is itself a Depository Agent, the Principal shall not be required to appoint another Depository Agent to be its agent for the purposes of Rule 4. In such case, any of the DVP Rules applicable to a Depository Agent shall be performed by the Principal in its capacity as Depository Agent.
Where the Principal is itself a Settlement Bank, the Principal shall not be required to furnish CDP with a Letter of Guarantee and Indemnity pursuant to Rule 2.3.1(b) if the Principal appoints itself to act as Settlement Bank to comply with Rule 2.3.1(a). In such case, any of the DVP Rules applicable to a Settlement Bank shall be performed by the Principal in its capacity as a Settlement Bank.