Common use of Financial Consequences of Termination Clause in Contracts

Financial Consequences of Termination. 1. If this Agreement is terminated by the Eurosystem pursuant to Article 38(2)(a), (b) or (c), 38(3)(b) or by the Contracting CSD pursuant to Articles 38(1)(d), (3)(b) or 39(2), the Eu- rosystem shall be entitled to claim financial compensation from the Contracting CSD. The procedures for the exercise of compensation claims and for the determination of the amounts of compensation are detailed in Section 2 of Schedule 13 (Procedures for payment of Claims). In case of termination by the Contracting CSD pursuant to Article 38(1)(d), the financial compensation to be paid by the Contracting CSD in accordance with Section 2 of Schedule 13 is reduced by 50 percent. 2. If this Agreement is terminated by the Contracting CSD pursuant to Article 38(1)(a), (b) or (c), the Contracting CSD shall be entitled to claim financial compensation from the Eu- rosystem for the Direct Loss, as defined in Article 32(2), incurred by the Contracting CSD. The Contracting CSD claiming compensation shall provide evidence of the losses for which compensation is claimed. The procedures for the exercise of compensation claims and for the determination of the amounts of compensation, also with regard to the limita- tion of such claims, are detailed in Section 2 of Schedule 13 (Procedures for payment of claims). For the avoidance of doubt, compensation for losses incurred by either Party re- sulting from the termination of this Agreement can be claimed only in accordance with Section 2 of Schedule 13 (Procedures for payment of Claims).