8.5.1

Past version: Effective from 10 Dec 2018 to 05 Sep 2021

The obligation of the selling customer to make delivery of securities to CDP pursuant to a New Sale Contract shall be discharged by CDP transferring such securities from the Securities Account of the selling customer and crediting CDP's account on such Settlement Day as CDP may determine. Title and right to such securities shall not at any time pass to the Defaulting Clearing Member. In the event that there are insufficient or no securities in such Securities Account that can be transferred to CDP, the selling customer shall be responsible to CDP for such shortfall.

The selling customer shall ensure that the securities are available in his Securities Account by the time set out in the CDP Settlement Rules, or such time as CDP shall specify.

Where the selling customer:

(1) has not made available in his Securities Account the securities or sufficient securities in accordance with this Rule 8.5.1; or
(2) has failed to deliver the securities or sufficient securities in accordance with this Rule 8.5.1,

such securities will be acquired in the manner prescribed by CDP to discharge the selling customer's delivery obligation.

Amended on 3 April 20083 April 2008, 20 November 200920 November 2009, 22 April 201322 April 2013 and 10 December 201810 December 2018.