9.3 Failure by either Party to redeliver
This provision applies in the event that a
Party (the
Transferor) fails to meet a redelivery obligation within the
standard settlement time for the asset concerned on the exchange or in the clearing organisation through which the asset equivalent to the asset concerned was originally delivered or within such other period as may be agreed between the
Parties. In such situation, in addition to the
Parties’ rights under the general law and this
Agreement where the other
Party (the
Transferee) incurs
interest, overdraft or similar costs and expenses the
Transferor agrees to pay on demand and
hold harmless the
Transferee with respect to all such costs and expenses which arise directly from such failure excluding (i) such costs and expenses which arise from the
negligence or
wilful default of the
Transferee and (ii) any
indirect or
consequential losses. It is agreed by the
Parties that any costs reasonably and properly incurred by a
Party arising in respect of the failure of a
Party to meet its obligations under a transaction to sell or deliver securities resulting from the failure of the
Transferor to fulfil its redelivery obligations is to be treated as a direct cost or expense for the purposes of this paragraph.