The Settlement Bank may establish a Principal Net Debit Cap for each Principal which it represents and shall inform CDP of the amount through the on-line communications system in accordance with such procedures as may be established by CDP from time to time. The Settlement Bank, may on a real-time basis, increase or decrease the amount of the Principal Net Debit Cap for any Principal it represents at any time throughout the Settlement Day.

Where the Principal Net Debit Cap has been decreased by the Settlement Bank, any subsequent receiving instructions (advance or otherwise) that would have the effect of increasing the Net Debit Balance or total Net Debit Balance (as the case may be) to a value that exceeds the value of the decreased Principal Net Debit Cap shall not be matched and validated. However, any subsequent delivery instructions (advance or otherwise) submitted by the Principal shall be matched and validated. This would have the effect of reducing the Principal's net debit balance or the total net debit balance (as the case may be). Where the net debit balance or the total net debit balance (as the case may be) falls below the value of the decreased Principal Net Debit Cap, receiving instructions (advance or otherwise) submitted by the Principal shall continue to be matched and validated provided that the value of such transactions do not cause the net debit balance or the total net debit balance (as the case may be) to exceed the value of the decreased Principal Net Debit Cap.

Example 3: Assume that the Principal's Net Debit Cap is $1 million and that prior to the Principal Net Debit Cap being decreased by the Settlement Bank, the net debit balance is $600,000. Assume also that there are no instructions submitted to be matched and validated in this case. The Settlement Bank then decreases the Principal Net Debit Cap to $500,000. Thereafter, any further receiving instructions submitted by the Principal shall not be matched and validated. However, delivery instructions submitted by the Principal shall continue to be matched and validated. Assuming that the value of such affirmations is $300,000, this would have the effect of reducing the net debit balance to $300,000. In such an event, receiving instructions submitted by the Principal shall continue to be matched and validated provided that the aggregate value of such transactions does not cause the net debit balance to exceed $500,000.

Example 3A: Assume that the Principal in Example 3, prior to the Principal Net Debit Cap being decreased to $500,000 by the Settlement Bank, has a net debit balance of $600,000 and has submitted instructions to be matched and validated in advance with a net debit value of $200,000. His total net debit balance is therefore $800,000. After the Settlement Bank has decreased his Principal Net Debit Cap to $500,000, further receiving instructions (advance or otherwise) submitted by the Principal shall not be matched and validated. However delivery instructions (advance or otherwise) submitted by the Principal shall continue to be matched and validated.

If, assuming that the Principal's current Settlement Day DVP delivery instructions is a net credit value of $300,000 and the instructions matched and validated in advance is a net credit value of $100,000, this would have the effect of reducing the net debit balance to $300,000 and reducing the total net debit balance to $400,000.

In such an event, delivery instructions (advance or otherwise) submitted by the Principal shall continue to be matched and validated provided that the aggregate value of such transactions does not cause the total net debit balance to exceed $500,000; i.e. the aggregate of such transactions is limited to a net debit value of $100,000.

Amended on 3 October 20093 October 2009.

Where the Principal Net Debit Cap has been increased by the Settlement Bank, subsequent receiving instructions (advance or otherwise) submitted by the Principal that would have the effect of increasing the net debit balance or the total net debit balance (as the case may be) up to a value that equals the value of the increased Principal Net Debit Cap, shall be matched and validated.

Amended on 3 October 20093 October 2009.