Common use of Default of the Trading Client Clause in Contracts

Default of the Trading Client. 5.1 The Trading Client undertakes to fulfil its obligations to the General Clearing Member arising from the Transfer Orders indicated in Article 2, according to the provisions of the Regulations, in due time for the General Clearing Member to fulfil its corresponding obligations to CC&G. 5.2 It is understood that in the event that the General Clearing Member notifies CC&G within the required deadline of the failed performance by the Trading Client of its settlement obligations, in whole or in part, the General Clearing Member under its sole responsibility is bound to close the contractual positions of the Trading Client, pursuant to the provisions of Articles B.6.1.1 and B.6.2.2 of the Regulations and CC&G shall perform the activities provided therein for the Trading Client, there being no obligation however, for CC&G to ascertain the truthfulness of the notification by the General Clearing Member. Article 5 bis-Default of the General Clearing Member 5.1bis In case of default of the General Clearing Member, the Trading Client may avail itself - without the consent of the Defaulting General Clearing Member - of a Designated Clearing Member to which the Contractual Positions and relevant existing guarantees of the Trading Client shall be transferred on the terms and conditions indicated in the Regulations. The Designated Clearing Member shall be allowed to operate only if it has entered into with the Trading Client the "Agreement between General Clearing Member and Trading Client” (Minimum Clauses)