Whole Section

  • 11.4 Termination of Guarantee and Indemnity for the Settlement Bank by the Clearing Bank

    • 11.4.1

      Where the Clearing Bank wishes to terminate the guarantee and indemnity provided to CDP in respect of the Settlement Bank under the Clearing Bank Deed, the Clearing Bank shall notify CDP by a written notice (the "SB Termination Notice"). The SB Termination Notice shall be deemed to take effect on the same day in the week following the day of receipt by CDP of the said Notice but shall not affect any accrued rights or liabilities of the Clearing Bank to CDP. If the day on which the SB Termination Notice is deemed to take effect is a public holiday, then the SB Termination Notice shall be deemed to take effect on the following Settlement Day.

      Amended on 25 February 201125 February 2011.

    • 11.4.2

      The Clearing Bank shall request CDP, on the prescribed form for decrease in the SB Net Debit Cap, to set the SB Net Debit Cap of the Settlement Bank whom it is terminating to zero on the date of issue of the SB Termination Notice, failing which the Clearing Bank shall be liable to pay the Net-Net Debit Balance or any shortfall thereof to CDP on behalf of the said Settlement Bank up to the date on which the Termination Notice is to take effect.