Upon any default of the Principal in payment of the Net Debit Balance, the Settlement Bank shall inform CDP by a written notice (the "Default Notice"). The Default Notice shall be delivered to CDP as soon as possible upon, and in no event later than one hour after the occurrence of the default. The Default Notice shall specify the name of the defaulting Principal and the amount of the default.

A Principal who is the subject of a Default Notice (the "defaulting Principal") shall be subject to such disciplinary action, including fines and suspension, as may be deemed appropriate by CDP.

CDP may also terminate the defaulting Principal's participation in DVP Settlement with effect from the date of receipt of the Default Notice in accordance with Rule 9.