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6.07.1

If so required under the relevant Contract Specifications, a Selling Member and/or Buying Member in a delivery contract shall post or cause its respective Seller or Buyer to post with the Clearing House as escrow agent a Performance Deposit and/or other payment (including but not limited to contract value) as may be prescribed under the relevant Contract Specifications (such person responsible for posting the Performance Deposit or other payment being referred to as the "depositing party"), at such time as provided under the relevant Contract Specifications, as security for the benefit of the counterparty under the delivery contract for the performance of the depositing party's obligations under the delivery contract. For the avoidance of doubt, posting of Performance Deposits or other payments by the depositing party is to be made without any set-off or withholding.

Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007, 1 October 20091 October 2009 and 26 April 201326 April 2013.

6.07.2

A Selling Member or Buying Member shall collect Performance Deposits, other payments and other Escrow Assets (where applicable) from its respective Seller or Buyer within such time as prescribed in the relevant Contract Specifications, or by the Clearing House. Nothing herein prohibits a Member from collecting additional monies or deposits from its Seller or Buyer to secure performance as it sees fit.

Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007, 22 February 201022 February 2010, 26 January 200726 January 2007, 1 October 20091 October 2009 and 26 April 201326 April 2013.

6.07.3

No Clearing Member shall grant, whether directly or indirectly, any advance, loan or credit facility to any Seller or Buyer for the purpose of posting Performance Deposits, other payments or other Escrow Assets (where applicable) with the Clearing House. For avoidance of doubt, Members shall only post the full sum of Performance Deposits, other payments and/or other Escrow Assets (where applicable) with the Clearing House.

Added on 22 September 200622 September 2006 amended on 26 January 200726 January 2007, 22 February 201022 February 2010 and 26 April 201326 April 2013.

6.07.4

When under this Rules, the Clearing House becomes the escrow agent of any Escrow Asset in connection with the delivery of the underlying Commodity, the following shall apply:

(a) The Clearing House holds such Escrow Asset solely as escrow agent on behalf of the depositing party subject to this Rules or the relevant Contract Specifications. As escrow agent, the Clearing House shall act solely as a stakeholder for the convenience of the depositing party and in accordance with the terms for such escrow holding as may be set out in this Rules or the relevant Contract Specifications.
(b) None of the Clearing House, any of its directors, officers, agents or employees (collectively "Officers") shall be liable to any party for any loss or damage arising out of or in connection with any act or omission with respect to the delivery and/or payment obligations of the depositing party during the period that the Clearing House is the escrow agent for such Escrow Asset or with respect to the non-release or delay in release of the Escrow Asset in accordance with the terms of the escrow unless the loss or damage is caused directly as a result of wilful breach or breach in bad faith by the Officers of the terms of the escrow.

Added on 22 September 200622 September 2006 and amended on 22 February 201022 February 2010 and 26 April 201326 April 2013.

6.07.5

The Clearing House shall be entitled to physically commingle Performance Deposits, other payments and other Escrow Assets (where applicable) with all Collateral subject always to its obligations under the SFA to segregate monies received for House Contracts and Customer Contracts.

Added on 22 September 200622 September 2006 and amended on 26 January 200726 January 2007 and 26 April 201326 April 2013.

6.07.6

The Clearing House shall be entitled to charge an administrative fee for acting as the escrow agent.

Added on 22 September 200622 September 2006.

6.07.7

The Clearing House shall credit all Performance Deposits, other payments and other Escrow Assets (where applicable) which a Clearing Member has posted with the Clearing House pursuant to this Rules with interest, dividends, and any other returns or entitlements on the full amount at such rate as prescribed by the Clearing House except for:

6.07.7.1 money continued to be held consequent or subsequent to a delivery default; and
6.07.7.2 any administrative fees payable to the Clearing House pursuant to Rule 6.07.6.

The depositing party shall be entitled to the benefit of any such interest, dividends, returns or entitlements that is credited.

Amended on 26 January 200726 January 2007 and 26 April 201326 April 2013.

6.07.8 Release of Performance Deposits and Other Payments
6.07.8.1 Subject to Rule 6.07.8.2, the Clearing House shall release the Performance Deposit and/or other payment posted with it (less any administrative fees payable) to the respective Selling Member and/or Buying Member, as the case may be only as provided in the relevant Contract Specifications.
6.07.8.2 The lodging of a claim which is not bona fide by a Seller or Buyer, or Clearing Member as the case may be, may subject such Clearing Member or the Clearing Member of such Seller or Buyer to such penalties as the Clearing House may impose.
6.07.8.3 For the avoidance of doubt, upon the release of the Performance Deposit and/or other payment, the Clearing House shall be released from its obligations as an escrow agent in relation to such Performance Deposit and/or other payment (as the case may be), and from any liabilities in relation thereto.

Added on 22 September 200622 September 2006 and amended on 1 October 20091 October 2009 and 26 April 201326 April 2013.

6.07.9 Release of Escrow Assets Other than Performance Deposits and Other Payments

The Clearing House shall release the Escrow Assets other than the Performance Deposits and other payments (less any administrative fees payable) to the respective clearing members of the Seller and/or Buyer, as the case may be, only as provided in the relevant Contract Specifications. For the avoidance of doubt, upon the release of such Escrow Assets, the Clearing House shall be released from its obligations as an escrow agent in relation to such Escrow Assets, and from any liabilities in relation thereto.

Added on 26 January 200726 January 2007 and amended on 1 October 20091 October 2009 and 26 April 201326 April 2013.