Suspended Securities Clause Samples
Suspended Securities. This clause applies if:
(a) dealings in any borrowed Securities are suspended from trading by the stock exchange on which the Securities were quoted at the time of delivery under these Terms, whether by reason of the adverse position of the issuer or otherwise; or (b) for any other reason concerning the issuer of those Securities (such as the liquidation, provisional liquidation, administration or receivership of the issuer, or the Securities ceasing to be listed for trading on the stock exchange on which they were listed at the time of delivery under these Terms), or concerning the exchange or clear house through which they are traded, one Party is unable to transfer title to those Securities or Equivalent Securities to the other Party. At any time while a situation described above prevails in relation to particular borrowed or Collateral Securities (Suspended Securities), either the Lender or the Borrower may give notice (Suspension Notice) to the other, in which the following applies. If a Suspension Notice is given, the Borrower and the Lender must promptly enter into negotiations in good faith with a view to agreeing promptly the market value of the Suspended Securities for the purposes of this clause. Neither the Borrower nor the Lender may unreasonably withhold or delay its agreement to a market value reasonably proposed by the other Party. Any market value agreed under this clause applies to the Suspended Securities notwithstanding the definition of Value in clause 22.
Suspended Securities. If dealings in any borrowed Securities are suspended by reason of the adverse financial position of the issuer, then the following provisions shall apply:-
(i) either the Lender or the Borrower may give notice of the suspension to the other in which event Clause 9(ii) and (iii) below shall apply;
(ii) where notice is given pursuant to Clause 9(i) by or to an Intermediary, the Intermediary shall forthwith give notice of the suspension to any Third Party from whom it borrowed the suspended Securities or to the Borrower as the case may be; and
(iii) notwithstanding the definitions of Value and Reference Price appearing in this Agreement, the Borrower, the Lender (and any Third Party) shall enter into negotiations in good faith with a view to agreeing the Value of the borrowed Securities, each Party undertaking not to withhold his consent unreasonably to any such agreement, it being understood that in the absence of such agreement the definitions of Value and Reference Price will continue to apply, PROVIDED THAT if the Lender or any Third Party called for the return of the borrowed Securities in order to deliver such Securities pursuant to a sale of such Securities, then the Value shall not be less than the net proceeds of such sale.