Rule 8 Matters relating to a Settlement Participant who is a Defaulting Clearing Member
8.1 Money in Cash Ledger Account to be held as Collateral
When a Settlement Participant is also a Clearing Member, and CDP has declared that an Event of Default has occurred in respect of that Clearing Member pursuant to the CDP Clearing Rules, the following shall, and the Clearing Member irrevocably consents that the following shall, apply:(a) unless otherwise determined by CDP, any money shown in the Cash Ledger Account of that Settlement Participant shall be held by CDP as Collateral deposited by that Clearing Member other than in relation to a Customer Account and applied in accordance with the CDP Clearing Rules and the Security Deed;(b) CDP shall have the right to cancel, suspend, amend, generate, re-enter, partially execute and/or execute (as the case may be), any Settlement Instruction, for the purpose of managing the default of the Clearing Member in accordance with the CDP Clearing Rules.
In this Rule, the terms "Customer Account" and "Security Deed" shall have the meanings ascribed to them in the CDP Clearing Rules.
CDP shall be entitled (but not obliged) to rely on the books and records of the suspended, restricted or former Settlement Participant as conclusive evidence of the entitlements or indebtedness of the Customers of that Settlement Participant due from or owing to the that Settlement Participant.