Simultaneous Settlement Clause Samples
The Simultaneous Settlement clause ensures that the exchange of obligations between parties, such as payment and delivery of goods or securities, occurs at the same time. In practice, this means that neither party is required to perform their obligation until the other is ready to do so, reducing the risk that one party fulfills their part while the other does not. This clause is essential for minimizing counterparty risk and ensuring fairness in transactions by making sure that both sides' commitments are met concurrently.
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Simultaneous Settlement. Subject to paragraph (a), on the date and time that Equivalent Securities are required to be redelivered by the Borrower in accordance with the provisions of these Terms, unless otherwise agreed by the Borrower, the Lender must simultaneously pay any Cash Collateral (in respect of the Equivalent Securities to be redelivered) to the Borrower. Neither Party is obliged to make delivery (or to make a payment as the case may be) to the other unless it is satisfied that the other Party will make such delivery (or make an appropriate payment as the case may be) to it simultaneously. If it is not so satisfied (whether because an Event of Default has occurred in respect of the other Party or otherwise), it will notify the other Party and, unless that other Party has made arrangements which are sufficient to assure full delivery (or the appropriate payment as the case may be) to the notifying Party, the notifying Party (provided it is itself in a position, and willing, to perform its own obligations) may withhold delivery (or payment, as the case may be) to the other Party