7A.06.6 Use of the Clearing Fund in Respect of Events of Default Occurring Within a Multiple Default Period
7A.06.6.1 A Multiple Default Period shall be a fixed period of 90 days commencing on the day an event of default occurs as declared by the Clearing House, where such event of default results in the use and application of the Clearing Fund.
7A.06.6.2 An event of default occurring within a Multiple Default Period shall not trigger the commencement of a new Multiple Default Period.
7A.06.6.3 The Clearing House shall notify Clearing Members of the commencement date of any Multiple Default Period.
7A.06.6.4 The Clearing Fund in the order of priority listed in Rule 7A.06.5.2 shall be used and applied in the following manner in respect of events of default occurring within a Multiple Default Period:
a. The Clearing Fund shall only be drawn upon after the monies of the defaulted Clearing Member with the Clearing House have been exhausted in accordance with this Rules;
b. The Clearing Fund shall be utilised in the order of priority listed in Rule 7A.06.5.2 irrespective of the number of draw downs on the Clearing Fund;
c. In the event that a utilisation of the Clearing Fund draws on only part of the funds available at any source under Rule 7A.06.5.2, the next utilisation of the Clearing Fund in connection with an event of default occurring within the same Multiple Default Period, shall draw first from the remaining funds available at the unexhausted source before drawing from the next source, taking into account, at all times, the relevant Contract Class;
d. Once all the sources of the Clearing Fund have been exhausted, any current or subsequent utilisation of the Clearing Fund in connection with an event of default occurring within the same Multiple Default Period shall revert to the sequence of the priority listed in Rule 7A.06.5.2; and
e. Upon the commencement of a new Multiple Default Period, the first draw down on the Clearing Fund in connection with an event of default occurring in the new Multiple Default Period shall commence from the first source of funds listed in Rule 7A.06.5.2, subject to Rule 7A.06.8.2, and the subsequent sources of funds shall follow accordingly. This applies regardless of the source from which the last payment out of the Clearing Fund was made in connection with an event of default which occurred in any previous Multiple Default Period.
7A.06.6.5 A resigning Clearing Member whose Security Deposit and Further Assessment Amount have been applied fully as specified in Rule 2.28.2A shall thereafter:
a. not be taken into account for the calculation of the aggregate Security Deposit requirement referred to in Rules 7A.06.5.2.b and d.; and
b. not be taken into account for the calculation of the aggregate Further Assessment Amount referred to in Rules 7A.06.5.2.c and e.
7A.06.6.6 Nothing in this Rule 7A.06.6 shall be construed as permitting the Clearing House to apply more than the Clearing Member's Security Deposit and Further Assessment Amount as at the time of the event of default, to meet losses arising from or in connection with any individual event of default.