DEFAULT BY DEALER Clause Samples

DEFAULT BY DEALER. The following terms shall apply to any Subscription Agreement if provided for therein: (a) If any Dealer shall default in its obligation to purchase the Covered Bonds which it has agreed to purchase pursuant to such Subscription Agreement, the representatives named in such Subscription Agreement may in their discretion arrange for the representatives or another party or other parties to purchase such Covered Bonds on the terms provided by such Subscription Agreement. If within thirty-six hours after such default by any Dealer the representatives do not arrange for the purchase of such Covered Bonds, then the Bank shall be entitled to a further period of thirty-six hours within which to procure another party or other parties satisfactory to the representatives to purchase such Covered Bonds on such terms. In the event that, within the respective prescribed periods, the representatives notify the Bank that they have so arranged for the purchase of such Covered Bonds, or the Bank notifies the representatives that it has so arranged for the purchase of such Covered Bonds, the representatives or the Bank shall have the right to postpone the Time of Delivery for a period of not more than seven calendar days, in order to effect whatever changes may thereby be made necessary in the Registration Statement, the Time of Sale Information or the Prospectus as amended or supplemented, or in any other documents or arrangements, and the Bank agrees to file promptly any amendments or supplements to the Registration Statement, the Time of Sale Information or the Prospectus which in the representatives' opinion may thereby be made necessary. The term Dealer as used with respect to such Subscription Agreement shall include any person substituted under this Section 16 (if applicable) with like effect as if such person had originally been a party to such Subscription Agreement. (b) If, after giving effect to any arrangements for the purchase of the Covered Bonds of a defaulting Dealer or Dealers by the representatives and the Bank as provided in clause (a) above, the aggregate principal amount of such Covered Bonds which remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Covered Bonds covered by such Subscription Agreement, then the Bank shall have the right to require each non-defaulting Dealer to purchase the principal amount of Covered Bonds which such Dealer agreed to purchase pursuant to such Subscription Agreement and, in additio...