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.

Added on 10 December 201810 December 2018.