Rule 5 Arrangements for Money Settlement
5.1 Cash Ledger Accounts
CDP shall maintain, for each Settlement Participant, an account on its books to record the amount of money that the Settlement Participant has with CDP for the purposes of and arising from money settlement under these Rules. That account will be referred to in these Rules as the Settlement Participant's "Cash Ledger Account".
When a Settlement Participant deposits a sum of money with CDP, the Settlement Participant's Cash Ledger Account will be credited with an equivalent sum. When a Settlement Participant withdraws a sum of money held with CDP, the Settlement Participant's Cash Ledger Account will be debited with an equivalent sum.
Save for manifest error, the balance in a Settlement Participant's Cash Ledger Account is binding and conclusive on the Settlement Participant as to the amount of money that CDP holds for the Settlement Participant.
Notwithstanding any manifest error or dispute as to the balance in a Settlement Participant's Cash Ledger Account, CDP shall be entitled to act on the basis that the balance in the Cash Ledger Account accurately reflects the amount of money that it holds on behalf of the Settlement Participant, until the dispute is resolved.
5.2 Bank Accounts
Each Settlement Participant shall maintain and nominate, for the purpose of meeting cash calls and/or receiving money from CDP, and CDP shall designate, for the purpose of receiving money from Settlement Participants:(a) account(s) with the central bank for Singapore dollar; and(b) account(s) with Settlement Banks for each foreign currency,
(each a "Bank Account" and collectively, "Bank Accounts").
5.2.2(a) Each Settlement Participant shall, in writing, provide CDP with details of its nominated Bank Account(s). Such nomination shall be subject to CDP's approval, and/or such terms and conditions as CDP may specify.(b) CDP shall by circular or otherwise in writing provide the Settlement Participants with the details of its Bank Accounts.
5.3 Finality of money deposit with and money receipt from CDP
A Settlement Participant's deposit of money with CDP and receipt of money from CDP shall not be final, and its Cash Ledger Account will not be updated, until the payment sum is irrevocably and unconditionally received, in immediately available funds, in the Bank Account of the intended recipient.
5.4 Trust Arrangements
Money deposited with or held by CDP for a Settlement Participant (as reflected in the Settlement Participant's Cash Ledger Account) will be held on trust by CDP, as bare trustee, for the benefit of that Settlement Participant.
CDP shall have the right to commingle any money held on trust for a Settlement Participant with money held on trust for other Settlement Participants in the same bank or custodian account.
CDP shall not have any obligation or responsibility to preserve or protect, and under no circumstances shall CDP be liable for any loss or diminution in value or depreciation in or in connection with, the money deposited with or held by it on trust for a Settlement Participant.
If any money held on trust for a Settlement Participant is lost or becomes unavailable to CDP, CDP shall have the right to immediately give a zero value to such money. If, as a result, the Settlement Participant's obligation to make payment under Settlement Instructions cannot be fully met as determined by CDP, the Settlement Participant shall deposit such additional money with CDP as may be required to meet such obligation within such time as CDP may require.
CDP shall have no obligation to make payment of any fees, interests or investment earnings arising from or in connection with any money held on trust for Settlement Participants.
CDP shall have the right to commingle any money held on trust for Settlement Participants with its own money in the same bank or custodian account, and shall, notwithstanding such commingling, be entitled to a beneficial ownership over and up to the amount of its own money extended to such bank or custodian account and any interest earned and return arising from such money. CDP shall retain the right to use such money (including any interest and returns) for any purpose, including for settlement and to pay bank or custodian fees, so long as any withdrawal does not exceed CDP's entitlement. CDP's records shall be conclusive and binding on Settlement Participants as to the sum of its own money extended to any bank or custodian account and any interest earned and return arising from such money.