3.5 Representations Made When A DVP Instruction Submitted by the Principal is Matched and Validated
When a receiving Principal submits a DVP instruction which is matched and validated, the Principal warrants, represents and undertakes to CDP that it has sufficient funds to pay the purchase consideration and brokerage (if any) for the transaction or transfer to CDP on Settlement Day.
When a delivering Principal submits a DVP instruction which is matched and validated, the Principal warrants, represents and undertakes to CDP that it has sufficient securities to meet its delivery obligations pursuant to these DVP Rules on Settlement Day and that it has authorised CDP to earmark the said securities for delivery from its Designated Securities Account.
The Principal shall indemnify CDP against any losses, damages, liabilities, costs, claims, actions and demands which it may incur or which may be made against it as a result of or arising from the breach of the warranties, representations and undertakings of the Principal provided for in or given pursuant to these DVP Rules.
CDP shall be entitled to claim against the Principal for the indemnity provided for under Rule 3.5.3 without prejudice to any other rights or remedies which it may have under these DVP Rules or otherwise.