7A.06.7 Rights of Clearing House for Recovery of Loss

Past version: Effective from 07 Aug 2012 to 25 Apr 2013

7A.06.7.1 If a Clearing Member's Security Deposit, margins on deposit with the Clearing House and any of its other assets or securities available to the Clearing House are insufficient to fully discharge all of such Clearing Member's obligations to the Clearing House, including all claims against or expenses incurred by the Clearing House by reason of its substitution for that Clearing Member pursuant to Rule 7.04, the Clearing House shall nonetheless pay all such claims and expenses related to any of the action which the Clearing House may take pursuant to Rule 7A.02.1 (including drawings from the Clearing Fund and expenses), which shall be deemed a loss to it and which shall be a debt from the defaulting Clearing Member to the Clearing House, which the Clearing House may collect from the assets or securities of such Clearing Member available to it or by process of law.
7A.06.7.2 If any amount paid out of the Clearing Fund pursuant to Rule 7A.06.5 is subsequently recovered by the Clearing House in whole or in part, the Clearing House shall credit the amount so received to the Clearing Fund in the reverse of the order in which it was paid out.
7A.06.7.3 If a loss in respect of which a levy has been made against Clearing Members pursuant to Rules 7A.06.5.2.b, c, d, and e is afterward recovered by the Clearing House in whole or in part, the net amount of such recovery shall be credited to such persons (whether or not they are Clearing Members at the time of recovery) in proportion to the amount of the assessment paid by such persons.

Added on 7 August 20127 August 2012.