Common use of Contractual Settlement Clause in Contracts

Contractual Settlement. 7.1) We may make available a provisional credit of settlement, maturity or redemption cash proceeds, or income and dividends on a contractual settlement basis or predetermined income basis, as the case may be (“Contractual Settlement”), in markets and for Securities deemed appropriate for that practice by Us and agreed with You. 7.2) Where Contractual Settlement is extended on a sale, redemption or maturity event, the corresponding Securities shall be debited from the securities account and held by Us or sub-custodian pending settlement. Securities purchased will not be available for use until actual settlement. 7.3) We reserve the right to reverse any such credit at any time before actual receipt of the item associated with the credit when We determine in Our reasonable judgement that actual receipt may not be received for that item. Where it is possible We will give advance notice of the reversal (but it shall not be obliged to do so where We determine We need to act sooner or where Our ability to recover may be compromised). Where there is any requirement of reversal of previously advanced cash We may charge the appropriate Client Money account for the expense of providing funds associated with the advance pursuant to clause 6.2 and 6.3 of these Terms. 7.4) Any provisional credits provided under these Terms shall be considered as cash advance for the purposes of clause 5 of these Terms to the extent they cannot be reversed in accordance the preceding clauses.