The obligation of the selling customer to make delivery of securities to CDP pursuant to a New Sale Contract shall be discharged by CDP debiting such securities from the "Free" balance of the Securities Account or sub-account of the selling customer and crediting CDP's suspense account before 12 midnight on the Settlement Day. 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 the "Free" Balance of such Securities Account or sub-account, the selling customer shall be responsible to CDP for such shortfall.
In addition, the selling customer shall ensure that the securities are available in the balance of his Securities Account or sub-account by the start of the Settlement Run as set out in Appendix 1 on Settlement Day, or such time as determined by CDP.
Where the selling customer who:
such securities will be acquired in the manner prescribed by CDP.
The securities acquired shall thereafter be debited from the selling customer's Securities Account or sub-account.