Close-Out Netting. If Customer: (a) incurs a margin deficit in any IB account, (b) defaults on any obligation to IB, (c) becomes subject to bankruptcy, insolvency or other similar proceedings, or (d) fails to pay debts when due, IB has the right but not the obligation to close-out Customer's Forex transactions, liquidate all or some of Customer's collateral and apply the proceeds to any debt to IB.
Close-Out Netting. If Customer: (a) incurs a margin deficit in any IB UK account, (b) defaults on any obligation to IB UK and/or its Affiliates, (c) becomes subject to bankruptcy, insolvency or other similar proceedings, or (d) fails to pay debts when due, IB UK and/or its Affiliates have the right but not the obligation to close-out Customer's Forex transactions, liquidate all or some of Customer's collateral and apply the proceeds to any debt to IB UK and/or its Affiliates.
Close-Out Netting. If Client: (a) incurs a margin deficit in any GPS account, (b) defaults on any obligation to GPS, (c) becomes subject to bankruptcy, insolvency or other similarproceedings, or (d) fails to pay debts when due, GPS has the right in its sole discretion, but not the obligation, to close out Client's Forex transactions, liquidate all or some of Client's collateral (as set forth in Paragraph 16) and apply the proceeds to any debt to GPS.
Close-Out Netting. Without limiting any other rights that may be available to the Non-Defaulting Party (as hereinafter defined), if a Party (the "Defaulting Party"): (a) is the subject of a bankruptcy, insolvency, or similar proceeding; (b) fails to pay its debts generally as they become due; (c) makes a general assignment for the benefit of its creditors; (d) applies for, seeks, consents to, or acquiesces in the appointment of a receiver, custodian, trustee, liquidator, or similar official for all or a substantial portion of its assets; (e) fails to pay or perform, when due, any obligations to the other Party ("Non-Defaulting Party") within three (3) business days of a demand for performance thereof after giving effect to any applicable cure period in the Contracts; or (f) fails to provide adequate assurance of its ability to perform all of its outstanding obligations to the Non- Defaulting Party under one or more of the Transactions within forty-eight (48) hours of a demand therefor when the Non-Defaulting Party has reasonable grounds for insecurity, then the Non-Defaulting Party shall have the right, exercisable in its sole discretion, to liquidate all obligations arising under the Transactions, regardless of Commodity, whereupon they shall terminate, without notice or right to cure, and the monies due as a result of such terminated Transactions immediately shall be determined and netted among the Parties in the following manner:
(a) The Non-Defaulting Party may (i) designate a date (which date shall be not less than five (5) nor more than twenty (20) Business Days after the Non-Defaulting Party delivers notice) (the "Early Termination Date") on which all outstanding Transactions shall terminate and (ii) withhold any payments due the Defaulting Party in respect of any Transactions; provided, however, if the Defaulting Party is the subject of a bankruptcy, insolvency, or similar proceeding, all outstanding Transactions shall automatically terminate, without notice or right to cure, and without any other action by either Party as if an Early Termination Date had been declared immediately prior to such event. On the business day following the declaration of the Early Termination Date, the Non-Defaulting Party shall give notice to the Defaulting Party that the Non- Defaulting Party has declared an Early Termination Date pursuant to this Agreement, provided, however, the Non-Defaulting Party’s failure to give such notice shall not affect the validity or enforceability of the l...
Close-Out Netting. Close-out netting has been agreed between the Borrower and the Lenders. If an Event of Default occurs and if a Lender or the Agent on behalf of a Lender gives notice of close-out netting to the Borrower, all present and future obligations and liabilities (whether actual or contingent and in any other capacity whatsoever) between that Lender and the Borrower shall be settled through close-out netting (slutafregning).
Close-Out Netting. In the event Customer:
(a) incurs a margin deficit in any margined TFM LTD account,
(b) defaults in the payment or performance of any obligation to TFM LTD or TFM AS under anyagreement with TFM LTD or TFM AS,
(c) becomes the subject of a bankruptcy, insolvency or other similar proceeding, or
(d) fails to pay its debts generally as they become due, TFM LTD shall be entitled, in their discretion, immediately and at any time, to close-out all Customer`s foreign currency transactions by converting them to the base currency, and may, in their respective discretion, at any time or from time to time, liquidate all or some of Customer`s collateral in the possession or control of TFM LTD, TFM AS or their Affiliates on any commercially reasonable basis and apply the proceeds of such collateral to any amounts owing by Customer to TFM LTD resulting from the close-out of such foreign currency transactions.
Close-Out Netting. The purpose of close-out netting is to reduce the exposures on open contracts should a party become insolvent during the lifecycle of the contract. Close-out netting thus operates by way of forming an agreement that typically allows the solvent party to terminate all contracts between parties, calculate the losses and gains on each contract, and then set them off so that a single balance is owing.98 This is the ‘net’ amount.99 Collateral transactions are therefore usually dealt with en-masse from a capital requirement and risk management perspective. For instance, it is not uncommon for party A and party B to have many outstanding mutual obliga- tions through various collateral transactions. It would arguably be cheaper and more efficient to assess the relevant risk, post adequate financial collateral/ margin and calculate the necessary underlying capital if these transactions are dealt with on an aggregate basis.100 As noted above in section 3.4.2, collateral transactions covered by close-out netting are often protected by ‘safe harbours’, meaning that these transactions are shielded from traditional insolvency law rules that would otherwise be 98 Xxxxxxxxxxx and Xxxxxx Xxxx (n 91) 331 at 331-333. See also the legal definition of close-out netting under Article 2 (1) (98) of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms; Article 2 (1) (n) (i) of FCD. 99 Close-out netting can be distinguished from ‘set-off’. ‘Set-off’ refers to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims. See also general- ly, Muscat (n 75); Xxxxxxxxx et al (n 97) 316. 100 Paech (n 30) 1 at 36-39. applicable. These safe harbours thus serve to protect the parties’ enforcement of the contractual arrangements against insolvency law. Close-out netting is thereby said to have a practical effect comparable to a ‘super priority’ in that it is exempted to some extent from the equal treatment of creditors (pari passu) because of set-off, which results in full payment of claims.101 The natural playing field of close-out netting provisions are the industry standard master agreements, which contain clauses for contractual termination and liquidation of the specific transaction as one of their most important elements.102 Bankruptcy is indeed a triggering event that allows the non-de- faulting party to ‘close-out’ a...
Close-Out Netting. In the event Introducing Broker: (a) incurs a margin deficit in any Account or a Risk Management Requirement deficit in any Sub-Account, (b) defaults in the payment or performance of any obligation to Interactive under any agreement with Interactive, (c) becomes the subject of a bankruptcy, insolvency or other similar proceeding, or (d) fails to pay its debts generally as they become due, Interactive shall be entitled in its discretion, immediately and at any time to close-out all Introducing Broker’s foreign currency transactions by converting them to the base currency, and may in its discretion at any time or from time to time liquidate all or some of Introducing Broker’s collateral in Interactive’s possession or control on any commercially reasonable basis and apply the proceeds of such collateral to any amounts owing by Introducing Broker to Interactive resulting from the close-out of such foreign currency transactions.
Close-Out Netting. In the event that you: (a) incur a margin deficit in your IBUK Account, (b) default in the payment or performance of any obligation to IBUK or IBLLC under any agreement with IBUK or IBLLC, (c) become the subject of a bankruptcy, insolvency or other similar proceeding, or (d) fail to pay its debts generally as they become due, IBUK, IBLLC and their Affiliates shall be entitled, in their discretion, but not the obligation, to immediately and at any time, to close-out all your foreign currency transactions by converting them to the base currency, and may, in their respective discretion, at any time or from time to time, liquidate all or some of your collateral (as set forth in Section ) in the possession or control of IBUK, IBLLC or their Affiliates on any commercially reasonable basis and apply the proceeds of such collateral to any amounts you owe to IBUK or IBLLC resulting from the close-out of such foreign currency transactions.
Close-Out Netting. If Client: (a) incurs a margin deficit in any IBKR account, (b) defaults on any obligation to IBKR, (c) becomes subject to bankruptcy, insolvency or other similar proceedings, or (d) fails to pay debts when due, IBKR has the right in its sole discretion, but not the obligation, to close out Client's Forex transactions, liquidate all or some of Client's collateral (as set forth in Paragraph 16) and apply the proceeds to any debt to IBKR.
