Common use of Default of the Bank Clause in Contracts

Default of the Bank. (1) Where the Rules and Regulations or the Client Clearing Agreement provide in respect of an agreed segregation model in the context of Indirect Clearing that upon the occurrence of an event of default in respect of the Bank some or all Client Clearing Transactions entered into by the Bank are terminated, the Transactions which correspond to the terminated Client Clearing Transactions shall, in deviation from Section 4 of the Framework Agreement, terminate simultaneously without notice upon termination of the Client Clearing Transactions. For these Transactions, Section 7 paragraph (1) sentences 2 to 4 and paragraph (3) of the Framework Agreement apply, provided that references to Contracts, the Rules and Regulations and collateral are to be replaced with references to Client Clearing Transactions, the Client Clearing Agreement and collateral pursuant to the Client Clearing Agreement. (2) Section 7 paragraph (2) sentence 1 of the Framework Agreement applies correspondingly to Transactions in the context of Indirect Clearing, unless such inclusion conflicts with the relevant agreed protection of client positions pursuant to the respective segregation model. In case of an individual client segregation or a gross omnibus client segregation model, the Bank agrees to a direct transfer by the respective Clearing Member to the Counterparty in performance of the compensation claim for non-performance of the Counterparty against the Bank pursuant to paragraph (1) in conjunction with Section 7 paragraph (1) of the Framework Agreement. (3) In order to enable the transfer of Transactions to a Clearing Member or a different client of a Clearing Member, the Counterparty may request that the Bank takes all actions and legal measures necessary pursuant to applicable laws, the Rules and Regulations of the respective central counterparty and the Client Clearing Agreement to effect such transfer. (4) Section 5 applies without limitation in case of a default of the Bank. (5) In case of the Bank's insolvency, Section 4 paragraph (2) of the Framework Agreement does not apply to Transactions for which a segregation model has been chosen. In such case, this Section 3 shall apply exclusively.

Default of the Bank. (1) Where the Rules and Regulations or the Client Clearing Agreement provide in respect of an agreed segregation model in the context of Indirect Clearing that upon the occurrence of an event of default in respect of the Bank some or all Client Clearing Transactions entered into by the Bank are terminated, the Transactions which correspond to the terminated Client Clearing Transactions shall, in deviation from Section section 4 of the Framework Agreement, terminate simultaneously without notice upon termination of the Client Clearing Transactions. For these Transactions, Section section 7 paragraph (1) sentences 2 to 4 and paragraph (3) of the Framework Agreement apply, provided that references to Contracts, the Rules and Regulations and collateral are to be replaced with references to Client Clearing Transactions, the Client Clearing Agreement and collateral pursuant to the Client Clearing Agreement. (2) Section 7 paragraph (2) sentence 1 of the Framework Agreement applies correspondingly to Transactions in the context of Indirect Clearing, unless provided however that such inclusion conflicts does not conflict with the relevant agreed protection of client positions pursuant to the respective segregation model. In case of an individual client segregation or a gross omnibus client segregation model, the Bank agrees to a direct transfer by the respective Clearing Member to the Counterparty Contracting Party in performance of the compensation claim for non-performance of the Counterparty Contracting Party against the Bank pursuant to section 3 paragraph (1) in conjunction with Section section 7 paragraph (1) of the Framework Agreement. (3) In order to enable the transfer of Transactions Transaction to a Clearing Member or a different client of a Clearing Member, the Counterparty Contracting Party may request that the Bank takes all actions and legal measures necessary pursuant to applicable laws, the Rules and Regulations of the respective central counterparty and the Client Clearing Agreement to effect such transfer. (4) Section 5 applies without limitation limitations in case of a default of the Bank. (5) In case of the Bank's insolvency, Section section 4 paragraph (2) of the Framework Agreement does not apply to Transactions for which a segregation model has been chosen. In such case, this Section section 3 shall apply exclusively.

Default of the Bank. (1) Where the Rules and Regulations or the Client Clearing Agreement provide in respect of an agreed segregation model in the context of Indirect Clearing that upon the occurrence of an event of default in respect of the Bank some or all Client Clearing Transactions entered into by the Bank are terminated, the Transactions which correspond to the terminated Client Clearing Transactions shall, in deviation from Section section 4 of the Framework Agreement, terminate simultaneously without notice upon termination of the Client Clearing Transactions. For these Transactions, Section section 7 paragraph (1) sentences 2 to 4 and paragraph (3) of the Framework Agreement apply, provided that references to Contracts, the Rules and Regulations and collateral are to be replaced with references to Client Clearing Transactions, the Client Clearing Agreement and collateral pursuant to the Client Clearing Agreement. (2) Section 7 paragraph (2) sentence 1 of the Framework Agreement applies correspondingly to Transactions in the context of Indirect Clearing, unless such inclusion conflicts with the relevant agreed protection of client positions pursuant to the respective segregation model. In case of an individual client segregation or a gross omnibus client segregation model, the Bank agrees to a direct transfer by the respective Clearing Member to the Counterparty Contracting Party in performance of the compensation claim for non-performance of the Counterparty Contracting Party against the Bank pursuant to paragraph (1) in conjunction with Section section 7 paragraph (1) of the Framework Agreement. (3) In order to enable the transfer of Transactions to a Clearing Member or a different client of a Clearing Member, the Counterparty Contracting Party may request that the Bank takes all actions and legal measures necessary pursuant to applicable laws, the Rules and Regulations of the respective central counterparty and the Client Clearing Agreement to effect such transfer. (4) Section 5 applies without limitation in case of a default of the Bank. (5) In case of the Bank's insolvency, Section section 4 paragraph (2) of the Framework Agreement does not apply to Transactions for which a segregation model has been chosen. In such case, this Section section 3 shall apply exclusively.