Template:Nutshell EUA Annex (d)(i)(4): Difference between revisions

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{{euaprov|(d)(i)(4)}} '''{{euaprov|Settlement Disruption Event}}'''
{{euaprov|(d)(i)(4)}} '''{{euaprov|Settlement Disruption Event}}'''
:(A) '''Notification''': Either party may notify the other party in writing of a {{euaprov|Settlement Disruption Event}} and the impacted {{isdaprov|Transaction}}s. If the affected party is the one giving notice, it must also give details of the {{euaprov|Settlement Disruption Event}} and a non-binding estimate of the extent and expected duration of its resultant inability to perform.
:(A) '''Notification''': Either party may notify the other party in writing of a {{euaprov|Settlement Disruption Event}} and the impacted {{isdaprov|Transaction}}s. If it is the affected party, it must also give details of the {{euaprov|Settlement Disruption Event}} and a non-binding estimate of the extent and likely duration of the disruption on its obligations.
:(B) '''Effect''': Upon a {{euaprov|Settlement Disruption Event}} both parties’ olibgations will be suspended, subject to {{euaprov|Continuing Settlement Disruption Event}} below, until the {{euaprov|Settlement Disruption Event}} is no longer preventing settlement. During the {{euaprov|Settlement Disruption Event}}, the affected party must continue to use all reasonable endeavours to overcome it.  
:(B) '''Effect''': Upon a {{euaprov|Settlement Disruption Event}} both parties’ obligations will be suspended, subject to {{euaprov|Continuing Settlement Disruption Event}} below, until the {{euaprov|Settlement Disruption Event}} no longer prevents settlement. During the {{euaprov|Settlement Disruption Event}}, the affected party must use all reasonable endeavours to settle.  
:(C) '''Delayed Performance''': Subject to {{euaprov|Continuing Settlement Disruption Event}} below, once the {{euaprov|Settlement Disruption Event}} no longer prevents settlement, both parties must, promptly and within two {{euaprov|Delivery Business Day}}s, resume their obligations under the relevant {{isdaprov|Transaction}}s.
:(C) '''Delayed Performance''': Subject to {{euaprov|Continuing Settlement Disruption Event}} below, once the {{euaprov|Settlement Disruption Event}} no longer prevents settlement, both parties must, promptly and within two {{euaprov|Delivery Business Day}}s, resume their obligations under the {{isdaprov|Transaction}}s.
:(D) '''{{euaprov|Continuing Settlement Disruption Event}}''': Where a {{euaprov|Settlement Disruption Event}} continues:
:(D) '''{{euaprov|Continuing Settlement Disruption Event}}''': Where a {{euaprov|Settlement Disruption Event}} continues:
::(I) for 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
::(I) for 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
::(II) for the period ending on a {{euaprov|Reconciliation Deadline}} falling on after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
::(II) until a {{euaprov|Reconciliation Deadline}} falling on or after the original {{euaprov|Delivery Date}}; or, if shorter:
::(III) for the period ending on the day 3 {{euaprov|Delivery Business Day}}s before the {{euaprov|End of Phase Reconciliation Deadline}} falling on or after the originally scheduled {{euaprov|Delivery Date}},
::(III) until the day 3 {{euaprov|Delivery Business Day}}s before the {{euaprov|End of Phase Reconciliation Deadline}} falling on or after the original {{euaprov|Delivery Date}}:
:then at the end of the relevant period, an {{isdaprov|Illegality}} will occur where the relevant {{euaprov|EU Emissions Allowance Transaction}} is the sole {{isdaprov|Affected Transaction}}, both parties are {{isdaprov|Affected Parties}}, no {{isdaprov|Waiting Period}} will apply and, if an {{isdaprov|Early Termination Date}} results, then, when determining any {{isdaprov|Early Termination Amount}} payable in respect of that {{isdaprov|Early Termination Date}}:
:then at that time there will be an {{isdaprov|Illegality}} where the affected {{isdaprov|Transaction}} is the sole {{isdaprov|Affected Transaction}}, both parties are {{isdaprov|Affected Parties}}, there is no {{isdaprov|Waiting Period}} and, if an {{isdaprov|Early Termination Date}} results, when determining the {{isdaprov|Early Termination Amount}} the suspended obligations will resume on the {{isdaprov|Early Termination Date}}, if “'''{{euaprov|Payment on Termination for Settlement Disruption}}'''” applies, and if it does not the parties will have no further obligations after the {{euaprov|Settlement Disruption Event}} other than for {{isdaprov|Unpaid Amounts}} and provided that (other than in respect of already-delivered {{euaprov|Allowance}}s)
::(i) if “Payment on Termination for Settlement Disruption” applies the requirement to perform the suspended obligations will resume on the {{isdaprov|Early Termination Date}}; or
::(i) {{euaprov|Delivering Party}} must promptly refund any amount {{euaprov|Receiving Party}} it was paid under a {{euaprov|Allowance Forward Transaction}} or {{euaprov|Call}}; and  
::(ii) if “Payment on Termination for Settlement Disruption” does not apply, the parties will have no further delivery or payment obligations under the {{isdaprov|Transaction}} after the {{euaprov|Settlement Disruption Event}} (other than in respect of any {{isdaprov|Unpaid Amounts}}); provided that:
::(ii) {{euaprov|Receiving Party}} must promptly refund any amount {{euaprov|Delivering Party}} it was paid under a {{euaprov|Put}}
:::(i) {{euaprov|Delivering Party}} must promptly refund to {{euaprov|Receiving Party}} any amount {{euaprov|Receiving Party}} paid under any {{euaprov|Allowance Forward Transaction}} or {{euaprov|Call}}; and  
:together with interest from the payment date until the termination date of the {{isdaprov|Transaction}} at the overnight deposit rate for the relevant currency. <br>
:::(ii) {{euaprov|Receiving Party}} must promptly refund to {{euaprov|Delivering Party}} any amount {{euaprov|Delivering Party}} paid under a {{euaprov|Put}}  
::other than in respect of delivered {{euaprov|Allowance}}s, together with interest on that amount in the same currency as that amount for the period from (and including) the date that amount was paid to (but excluding) the date of termination of the {{isdaprov|Transaction}}, at the rate certified by the party required to refund the amount to be a rate offered to such party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to be selected in good faith by that party for purposes of obtaining a representative rate that will reasonably reflect conditions prevailing at the time in the relevant market.

Latest revision as of 14:03, 4 May 2023

(d)(i)(4) Settlement Disruption Event

(A) Notification: Either party may notify the other party in writing of a Settlement Disruption Event and the impacted Transactions. If it is the affected party, it must also give details of the Settlement Disruption Event and a non-binding estimate of the extent and likely duration of the disruption on its obligations.
(B) Effect: Upon a Settlement Disruption Event both parties’ obligations will be suspended, subject to Continuing Settlement Disruption Event below, until the Settlement Disruption Event no longer prevents settlement. During the Settlement Disruption Event, the affected party must use all reasonable endeavours to settle.
(C) Delayed Performance: Subject to Continuing Settlement Disruption Event below, once the Settlement Disruption Event no longer prevents settlement, both parties must, promptly and within two Delivery Business Days, resume their obligations under the Transactions.
(D) Continuing Settlement Disruption Event: Where a Settlement Disruption Event continues:
(I) for 9 Delivery Business Days after the originally scheduled Delivery Date; or, if shorter:
(II) until a Reconciliation Deadline falling on or after the original Delivery Date; or, if shorter:
(III) until the day 3 Delivery Business Days before the End of Phase Reconciliation Deadline falling on or after the original Delivery Date:
then at that time there will be an Illegality where the affected Transaction is the sole Affected Transaction, both parties are Affected Parties, there is no Waiting Period and, if an Early Termination Date results, when determining the Early Termination Amount the suspended obligations will resume on the Early Termination Date, if “Payment on Termination for Settlement Disruption” applies, and if it does not the parties will have no further obligations after the Settlement Disruption Event other than for Unpaid Amounts and provided that (other than in respect of already-delivered Allowances)
(i) Delivering Party must promptly refund any amount Receiving Party it was paid under a Allowance Forward Transaction or Call; and
(ii) Receiving Party must promptly refund any amount Delivering Party it was paid under a Put
together with interest from the payment date until the termination date of the Transaction at the overnight deposit rate for the relevant currency.
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