11.1.1
Where a Settlement Bank has defaulted on its payment obligations to CDP pursuant to Rule 8.3.4, CDP shall give notice to the Clearing Bank that the Settlement Bank has failed to pay the Net-Net Debit Balance or any part thereof (the "SB Default Notice"). The SB Default Notice shall specify the Settlement Bank who has defaulted and the amount of default. The SB Default Notice shall be delivered to the Clearing Bank as soon as possible upon, and in no event later than one (1) hour after, the occurrence of the default.
Amended on 25 February 201125 February 2011.
11.2.1
A Settlement Bank who is the subject of an SB Default Notice (the "defaulting SB") shall be subject to such disciplinary action, including fines and suspension, as may be deemed appropriate by CDP.
11.3.1
Without prejudice to Rule 11.2, CDP may, at any time, by notice in writing to the Settlement Bank, terminate, suspend or withhold the Settlement Bank's participation in DVP Settlement (such termination, suspension or withholding to take effect immediately upon issue of such notice unless otherwise specified in the notice) if:
Amended on 25 February 201125 February 2011.
11.3.2
Notwithstanding Rule 11.3.1, CDP may (without assigning any reason whatsoever) terminate the Settlement Bank's participation in DVP Settlement by giving at least thirty (30) days' prior written notice to the Settlement Bank.
11.3.3
The Settlement Bank shall inform CDP immediately in writing of the occurrence of any of the event mentioned in Rules 11.3.1(b) to (e) of these DVP Rules.
11.3.4
CDP shall, immediately upon the issue of a notice in writing to the Settlement Bank pursuant to this Rule 11.3 to terminate, suspend or withhold the Settlement Bank's participation in DVP Settlement, or upon the receipt of a notice in writing from the Principal pursuant to Rule 11.5, send a copy of the said notice to the Clearing Bank.
11.4.1
Where the Clearing Bank wishes to terminate the guarantee and indemnity provided to CDP in respect of the Settlement Bank under the Clearing Bank Deed, the Clearing Bank shall notify CDP by a written notice (the "SB Termination Notice"). The SB Termination Notice shall be deemed to take effect on the same day in the week following the day of receipt by CDP of the said Notice but shall not affect any accrued rights or liabilities of the Clearing Bank to CDP. If the day on which the SB Termination Notice is deemed to take effect is a public holiday, then the SB Termination Notice shall be deemed to take effect on the following Settlement Day.
Amended on 25 February 201125 February 2011.
11.4.2
The Clearing Bank shall request CDP, on the prescribed form for decrease in the SB Net Debit Cap, to set the SB Net Debit Cap of the Settlement Bank whom it is terminating to zero on the date of issue of the SB Termination Notice, failing which the Clearing Bank shall be liable to pay the Net-Net Debit Balance or any shortfall thereof to CDP on behalf of the said Settlement Bank up to the date on which the Termination Notice is to take effect.
11.5.1
The Settlement Bank may terminate its participation in DVP Settlement by giving at least thirty (30) days' prior written notice to CDP.
11.5.2
At the same time, the Settlement Bank shall also give written notice to the Principals for which its acts of its termination of participation in DVP Settlement.
11.6.1
Any termination, suspension or withholding of the Settlement Bank's participation in DVP Settlement (howsoever occasioned) shall not affect any accrued rights or liabilities of any Participant nor shall it affect the coming into force or the continuance in force of any provision hereof which is expressly or by implication intended to come into or continue in force on or after such event.
11.6.2
On termination of the Settlement Bank's participation in DVP Settlement (howsoever occasioned) or suspension of DVP Settlement pursuant to Rule 18, all outstanding amounts owing to CDP shall become due and payable and the Settlement Bank or the Clearing Bank, on behalf of the Settlement Bank shall forthwith pay CDP the same.
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.