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8.6B.1

Without prejudice and subject to the other provisions of these Clearing Rules, in particular Rule 7.9.1:

(1) where a Clearing Member has failed promptly to discharge any of its obligations to CDP, CDP may apply Collateral, including without limitation letters of credit procured by the Clearing Member to be issued to CDP, deposited or provided by the Clearing Member, except where such margins or other Collateral were deposited solely in relation to a Customer Account;
(2) notwithstanding Rule 8.6B.1(1), where a Clearing Member has failed promptly to discharge any of its obligations to CDP, and CDP has reasonable grounds for forming an opinion that the failure is directly attributable to the failure of any Customer Account holder to meet its obligations, CDP may apply:
(a) margins or other Collateral, (including without limitation letters of credit procured by the Clearing Member to be issued to CDP) deposited or provided by the Clearing Member solely in relation to Customer Accounts provided that the conditions in the SFA are satisfied; and
(b) any qualifying letters of credit deposited with or provided to CDP by a Trading Member sponsored by the Clearing Member, provided that the Clearing Member's default is attributable to such Trading Member's act or omission.

Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.