8.1A.1
For the purpose of these Clearing Rules, a Clearing Member becomes insolvent or shall be deemed to be insolvent on the occurrence of any of the following events:—
(1) it fails to fulfil or meet margins or settlement requirements for all or any of its Novated Contracts;
(2) it defaults upon any levy owing to CDP arising out of Rule 7.2.1 or Rule 7.10.3;
(3) it is or is at risk of being in material default under the term of any loan or other agreement relating to its indebtedness;
(4) it fails, is unable, admits its inability, or is deemed for the purposes of any law to be unable, to pay its debts as they fall due;
(5) a composition, assignment or arrangement is proposed or made for the benefit of its creditor;
(6) the value of its assets is less than its liabilities, taking into account contingent and prospective liabilities;
(7) by reason of its financial integrity having been or anticipated to be compromised, it proposes, or commences negotiations with one or more of its creditors, to suspend, stop, defer or reschedule payments on any of its indebtedness, or announces an intention to do so;
(8) it or any of its directors or other officers seeks or gives notice of its or his intention to seek, or if it or any of its assets becomes subject to, the appointment of an administrator, provisional liquidator, receiver, administrative receiver, judicial manager, judicial custodian, compulsory manager, trustee, trustee in bankruptcy, conservator, custodian or other similar officer, whether out of court or otherwise;
(9) a moratorium is declared in respect of any of its indebtedness;
(10) the enforcement of any security over any of its assets, or any distress, execution, attachment, sequestration or other legal process levied, enforced or served upon any of its assets;
(11) any corporate action, legal proceedings or other procedure or step is taken, including without limitation the presentation of a petition, the making of an application, the filing of documents with a court, the convening of a meeting of the Clearing Member, its directors or its members, the giving of a notice of a proposal or the passing of a resolution, in relation to or with a view to:
(a) the winding up, liquidation, dissolution, or seeking of a judgment of insolvency or other relief under any insolvency law or other similar law affecting creditors' rights in respect of the Clearing Member, whether voluntary or involuntary; or
(b) the administration, whether out of court, with a registrar or otherwise, judicial management or reorganisation, whether by way of voluntary arrangement, scheme of arrangement or otherwise, of the Clearing Member, whether voluntary or involuntary;
(12) it causes or is subject to any event which, under the applicable laws of any jurisdiction, has an effect analogous to any of the events specified above;
(13) it takes any action or step in furtherance of, or indicating its consent to, approval of or acquiescence in, any of the foregoing acts; or
(14) if CDP considers in its absolute discretion that the occurrence of any such events or their equivalent is imminent or likely in any jurisdiction.
Added on 22 April 201322 April 2013.