11.3.1

Past version: Effective up to 24 Feb 2011

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:

(a) CDP receives an SB Default Notice from the Clearing Bank concerning the Settlement Bank pursuant to Rule 11.1.1;
(b) The Settlement Bank has committed any breach of these DVP Rules and, where such breach is remediable, the Settlement Bank has failed within seven (7) days of receipt of written notice from CDP to remedy the same;
(c) The Settlement Bank 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 Settlement Bank or its property;
(e) Any step is taken by the Settlement Bank or any person for the liquidation or winding-up of the Settlement Bank or for the appointment of a liquidator (including a provisional liquidator), receiver, judicial manager, trustee, administrator or similar officer of the Settlement Bank or over all or any of its property or if CDP considers in its absolute discretion that such proceedings against the Settlement Bank are imminent or likely; or
(f) CDP receives an SB Termination Notice from the Clearing Bank concerning the Settlement Bank pursuant to Rule 11.4.1; or
(g) CDP, at its sole discretion, deems that the Settlement Bank has insufficient resources or capital to discharge any obligations it may incur to CDP.