From The Jolly Contrarian
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7 Termination
- 7(1) Material reason: For Transactions have not yet been fully settled, a party can only terminate the Agreement for a “material reason”. A material reason would include non-payment or non-performance for any reason, within five Banking Days of written notice of that non-performance by the non-defaulting party. Partial termination (e.g. of only some Transactions) i snot possible. Clause 12(5)(B) still applies.
- 7(2) Insolvency: The Agreement will terminate automatically if either party suffers an insolvency. “Insolvency” means the filing of an bankruptcy application or other insolvency proceedings against the assets of either party and such party either has filed the application itself or is generally unable to pay its debts as they become due or is in any other situation which justifies the commencement of such proceedings.
- 7(3) Obligations on Termination: The parties’ obligations under Clause 3(1) that due on or after the date of any such Termination will be cancelled and replaced by compensation claims under Clauses 8 and 9.