Rule 9 — Termination of Principal and Its DA

9.1 Termination of Principal by CDP

9.1.1

CDP may at any time (without prejudice to its other rights or remedies), by notice in writing to the Principal, terminate, suspend or withhold the Principal'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:

(a) CDP receives a Default Notice from the Settlement Bank concerning the Principal pursuant to Rule 8.7.1;

(b) The Principal or its DA has committed any breach of these DVP Rules and where such breach is remediable, the Principal or, as the case may be, its DA has failed within seven (7) days of receipt of written notice from CDP to remedy the same;

(c) The Principal or its DA is insolvent or unable to pay its debts as they fall due, compounds with or negotiates for any composition with its creditors generally or permits any judgment against it to remain unsatisfied for seven (7) days;

(d) Any distress, attachment, execution or other legal process is levied or enforced or served against the Principal or its property or its DA or its property;

(e) Any step is taken by the Principal or any person for the liquidation or winding-up of the Principal or for the appointment of a liquidator (including a provisional liquidator), receiver, judicial manager, trustee, administrator or similar officer of the Principal or over any of its property or if CDP considers in its absolute discretion that such proceedings against the Principal are imminent or likely; or

(f) The Principal, for any reason, does not have a Depository Agent who is approved to participate in DVP Settlement to act as its agent for the purposes of Rule 4; and

(g) CDP, at its sole discretion, deems that the Principal has insufficient resources or capital to discharge any obligations it may incur to CDP.

9.1.2

Notwithstanding Rule 9.1.1, CDP may (without assigning any reason whatsoever) terminate the Principal's participation in DVP Settlement by giving at least thirty (30) days' prior written notice to the Principal.

9.1.3

The Principal shall inform CDP immediately in writing of the occurrence of any of the events mentioned in Rules 9.1.1(c) to 9.1.1(f) of these DVP Rules.

9.1.4

CDP shall, immediately upon the issue of a notice in writing to the Principal pursuant to this Rule 9.1 to terminate, suspend or withhold the Principal's participation in DVP Settlement, or upon the receipt of a notice in writing from the Principal pursuant to Rule 9.4, send a copy of the said notice to the Settlement Bank of the Principal.

9.2 Termination of Payment Facilities by the Settlement Bank

9.2.1

CDP may, at any time (without prejudice to its other rights or remedies), by notice in writing to the Principal, terminate, suspend or withhold the Principal'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:

(a) CDP receives a Termination Notice from the Settlement Bank concerning the Principal pursuant to Rule 8.8.1;

(b) CDP issues a SB Default Notice to the Clearing Bank pursuant to Rule 11.1 concerning the Settlement Bank representing the Principal;

(c) CDP terminates, suspends or withholds the participation of the Settlement Bank representing the Principal pursuant to Rule 11.2 or 11.3;

(d) The Settlement Bank representing the Principal has failed to pay the Net-Net Debit Balance to CDP pursuant to Rule 8.3.4; or

(e) The Settlement Bank gives notice to CDP pursuant to Rule 11.6 that it desires to terminate its participation in DVP Settlement.

Amended on 8 September 2014 8 September 2014.

9.3 Obligations Arising Upon Termination of Principal

9.3.1

Any termination, suspension or withholding of the Principal'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.

9.3.2

Upon any termination, withholding or suspension of the Principal's participation in DVP Settlement, all liabilities and obligations owing to CDP shall become due and owing. Without prejudice to the generality of the foregoing, CDP shall immediately be entitled (but not bound) to:

(a) debit securities which have been earmarked by the Principal in its Designated Securities Accounts pursuant to delivery instructions (advance or otherwise);

(b) withhold delivery of securities to the Principal's Designated Securities Account pursuant to receiving instructions (advance or otherwise);

(c) issue Directives, Regulatory Notices, Practice Notes concerning the DVP transactions (advance or otherwise); and/or

(d) cancel the matched and validated transactions (advance or otherwise).

Amended on 3 October 2009 3 October 2009.

9.3.3

Notwithstanding the termination, withholding or suspension of the Principal's participation in DVP Settlement, CDP's rights and authorities concerning onward deliveries pursuant to Rule 12.2 shall not be affected. CDP may continue to credit and debit the Principal's Designated Securities Accounts for such onward deliveries.

9.3.4

On termination of the Principal'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 Principal shall forthwith pay CDP the same.

9.4 Termination by Principal

9.4.1

The Principal may terminate its participation in DVP Settlement by giving at least thirty (30) days' prior written notice to CDP.

9.5 Termination of DA

9.5.1

Upon any termination of the Principal, its Depository Agent shall also be terminated.

9.5.2

CDP may at any time (without prejudice to its other rights or remedies) by notice in writing to the DA, terminate, suspend or withhold the DA'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:

(a) The DA or its Principal has committed any breach of these DVP Rules and where such breach is remediable, the DA or, as the case may be, its Principal has failed within seven (7) days of receipt of written notice from CDP to remedy the same;

(b) The DA or its Principal is insolvent or unable to pay its debts as they fall due, compounds with or negotiates for any composition with its creditors generally or permits any judgment against it to remain unsatisfied for seven (7) days;

(c) Any distress, attachment, execution or other legal process is levied or enforced or served against the DA or its property or its Principal or its property; and

(d) Any step is taken by the DA or any person for the liquidation or winding-up of the DA or for the appointment of a liquidator (including a provisional liquidator), receiver, judicial manager, trustee, administrator or similar officer of the DA or over any of its property or if CDP considers in its absolute discretion that such proceedings against the DA are imminent or likely

9.5.3

Notwithstanding Rule 9.5.2, CDP may (without assigning any reason whatsoever) terminate the DA's participation in DVP Settlement by giving at least thirty (30) days' prior written notice to the DA.

9.5.4

The DA shall inform CDP immediately in writing of the occurrence of any of the events mentioned in Rules 9.5.2(b) to 9.5.2(d) of these DVP Rules.

9.6 Termination by DA

9.6.1

The DA may terminate its participation in DVP Settlement by giving at least thirty (30) days' prior written notice to CDP.

9.7 Obligations Arising Upon Termination of DA

9.7.1

Any termination, suspension or withholding of the DA'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.

9.7.2

Upon any termination, withholding or suspension of the DA's participation in DVP Settlement:

(a) all liabilities and obligations of its Principal and/or the DA to CDP shall become due and owing; and

(b) the DA's Principal shall not be entitled to participate in DVP Settlement until the said Principal has appointed a substitute DA or unless the said Principal has in force an appointment of another DA.