Whole Section

  • 11.7 Action by Principal Upon Termination of Settlement Bank

    • 11.7.1

      Without prejudice to Rule 9.2, upon termination or notice of termination of the Settlement Bank's participation in DVP Settlement, the Principals represented by the Settlement Bank so terminated shall appoint another Settlement Bank to be its agent for the purposes of making and receiving payments in DVP Settlement upon receipt of a written notice from CDP requiring them to do so. Pending the appointment of a substitute Settlement Bank, the Principal shall not submit further receiving instructions for DVP Settlement.

      Amended on 3 October 20093 October 2009.

    • 11.7.2

      Pending appointment of a substitute Settlement Bank, the Clearing Bank shall be deemed to have been approved as the Settlement Bank of the Principal and to act as its paying and collecting agent for the purposes of settling its outstanding payment obligations in DVP Settlement. The Principal shall pay the Net Debit Balance to the Clearing Bank and shall receive the Net Credit Balance from the Clearing Bank. The Clearing Bank shall be responsible for paying the Net Credit Balance to the Principal on behalf of CDP.