Template:Nutshell EUA Annex (d)(i)(5): Difference between revisions

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'''{{euaprov|Settlement Disruption Event}}''':  
{{euaprov|(d)(i)(4)}} '''{{euaprov|Settlement Disruption Event}}'''
:Something beyond the affected party’s control that, having used [[all reasonable efforts]], it cannot overcome and which makes it impossible to perform its obligations to deliver or to accept {{euaprov|Allowances}} under an {{euaprov|EU Emissions Allowance Transaction}}.
:(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.
 
:(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.
:Note that the following will not count as Settlement Disruption Events if they cause an inability to deliver {{euaprov|Allowances}} in the affected party’s {{euaprov|Specified Holding Account}}, as a result of:
:(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.
::(a) the low or non-allocation of {{euaprov|Allowances}} by any state;
:(D) '''{{euaprov|Continuing Settlement Disruption Event}}''': Where a {{euaprov|Settlement Disruption Event}} continues:
::(b) a Member State or {{euaprov|Central Administrator}} not replacing {{euaprov|Third Compliance Period}} {{euaprov|Allowances}} with {{euaprov|Fourth Compliance Period}} {{euaprov|Allowances}}; or
::(I) for 9 {{euaprov|Delivery Business Day}}s after the originally scheduled {{euaprov|Delivery Date}}; or, if shorter:
::(c) any party’s failure of a party to procure sufficient {{euaprov|Allowances}} to meet its delivery obligations
::(II) for the period ending on a {{euaprov|Reconciliation Deadline}} falling on after the originally scheduled {{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}},
:Something which otherwise would be a Settlement Disruption Event ''and'' a {{euaprov|Suspension Event}}, will count as a {{euaprov|Suspension Event}} and ''not'' a Settlement Disruption Event.
:then at the end of the relevant period, an {{isdaprov|Illegality}} will occur where the relevant {{isdaprov|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 the {{isdaprov|Early Termination Amount}} if “{{euaprov|Payment on Termination for Settlement Disruption}}” applies, the suspended obligations will resume on the {{isdaprov|Early Termination Date}}, and if it does not, the parties will have no further obligations after the {{euaprov|Settlement Disruption Event}} (other than in respect of any {{isdaprov|Unpaid Amounts}}); provided that:
::(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
::(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 from the payment date until the date of termination of the {{isdaprov|Transaction}} at the overnight deposit rate for the relevant currency.

Revision as of 15:04, 27 June 2022

(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 the affected party is the one giving notice, it must also give details of the Settlement Disruption Event and a non-binding estimate of the extent and expected duration of its resultant inability to perform.
(B) Effect: Upon a Settlement Disruption Event both parties’ olibgations will be suspended, subject to Continuing Settlement Disruption Event below, until the Settlement Disruption Event is no longer preventing settlement. During the Settlement Disruption Event, the affected party must continue to use all reasonable endeavours to overcome it.
(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 relevant 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) for the period ending on a Reconciliation Deadline falling on after the originally scheduled Delivery Date; or, if shorter:
(III) for the period ending on the day 3 Delivery Business Days before the End of Phase Reconciliation Deadline falling on or after the originally scheduled Delivery Date,
then at the end of the relevant period, an Illegality will occur where the relevant Transaction is the sole Affected Transaction, both parties are Affected Parties, no Waiting Period will apply and, if an Early Termination Date results, then, when determining the Early Termination Amount if “Payment on Termination for Settlement Disruption” applies, the suspended obligations will resume on the Early Termination Date, and if it does not, the parties will have no further obligations after the Settlement Disruption Event (other than in respect of any Unpaid Amounts); provided that:
(i) Delivering Party must promptly refund to Receiving Party any amount Receiving Party paid under any Allowance Forward Transaction or Call; and
(ii) Receiving Party must promptly refund to Delivering Party any amount Delivering Party paid under a Put
other than in respect of delivered Allowances, together with interest from the payment date until the date of termination of the Transaction at the overnight deposit rate for the relevant currency.
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