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| {{ietaprov|5}} Allowance Transfers<br>
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| {{ietaprov|5.1}} Primary Obligation.<br>
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| :{{ietaprov|5.1(a)}} In relation to a Transaction, the {{ietaprov|Delivering Party}} agrees to sell and {{ietaprov|Transfer}} and the {{ietaprov|Receiving Party}} agrees to purchase and accept the {{ietaprov|Period Traded Allowance}}s in accordance with its terms, subject to and in accordance with the terms and conditions of this {{ietaprov|Agreement}} and the {{ietaprov|EU ETS Rules}}.<br>
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| :{{ietaprov|5.1(b)}} In respect of a {{ietaprov|Confirmation}} a Party shall specify the information listed in (i) to (v) below. If more than one {{ietaprov|Delivery Date}} is specified in a {{ietaprov|Confirmation}} and, in respect of each such {{ietaprov|Delivery Date}}:<br>
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| ::5.1(b)(i) an {{ietaprov|Allowance Type}};<br>
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| ::5.1(b)(ii) an {{ietaprov|Allowance Price}};<br>
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| ::5.1(b)(iii) a {{ietaprov|PTA Quantity}};<br>
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| ::5.1(b)(iv) a {{ietaprov|Specified Period}}; and<br>
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| ::5.1(b)(v) {{ietaprov|Payment Due Date}},<br>
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| are specified in that {{ietaprov|Confirmation}} or are otherwise capable of being determined with certainty from the terms of that {{ietaprov|Confirmation}}, then separate Transactions shall be deemed to subsist in respect of each {{ietaprov|Transfer}} relating to each such {{ietaprov|Delivery Date}}. The terms of each such deemed Transaction, other than in relation to the {{ietaprov|Delivery Date}} and items (i) – (v) listed above, will be the same, unless otherwise specified in the {{ietaprov|Confirmation}}.<br>
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| :{{ietaprov|5.1(c)}} The {{ietaprov|Delivering Party}} agrees to {{ietaprov|Transfer}} (or procure the {{ietaprov|Transfer}} of) the {{ietaprov|Period Traded Allowance}}s from any {{ietaprov|Holding Account}} in any {{ietaprov|Registry}} to the relevant {{ietaprov|Receiving Party’s Holding Account}}; provided, however, that if one or more {{ietaprov|Delivering Party’s Holding Account}}s are specified in the {{ietaprov|Confirmation}} to a Transaction, the {{ietaprov|Receiving Party}} agrees that the {{ietaprov|Delivering Party}}’s obligation to {{ietaprov|Transfer}} {{ietaprov|Allowance}}s under this {{ietaprov|Agreement}} shall be limited to an obligation to {{ietaprov|Transfer}} the {{ietaprov|Period Traded Allowance}}s for the relevant {{ietaprov|Transaction}} from any of such {{ietaprov|Delivering Party’s Holding Account}}(s) to the relevant {{ietaprov|Receiving Party’s Holding Account}}. <br>
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| Where more than one {{ietaprov|Receiving Party’s Holding Account}} has been specified in the {{ietaprov|Confirmation}} to a Transaction, such {{ietaprov|Holding Account}}s are set out in order of preference for such {{ietaprov|Transaction}} and the {{ietaprov|Delivering Party}} shall {{ietaprov|Transfer}} {{ietaprov|Period Traded Allowance}}s from either, as the case may be:<br>
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| ::5.1(c)(i) any {{ietaprov|Holding Account}}; or <br>
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| ::5.1(c)(ii) any {{ietaprov|Delivering Party’s Holding Account}},<br>
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| to the first listed {{ietaprov|Receiving Party’s Holding Account}}, unless in respect of such {{ietaprov|Receiving Party’s Holding Account}}, it is prevented from so doing by an event or circumstance that would be described under Clause {{ietaprov|13}} ({{ietaprov|Force Majeure}} or {{ietaprov|Suspension Event}}) or Clause {{ietaprov|14.7}} (Illegality) if the first listed {{ietaprov|Receiving Party’s Holding Account}} were the only {{ietaprov|Holding Account}} so listed. In such circumstances, the provisions of this paragraph will apply iteratively as though the next listed {{ietaprov|Receiving Party’s Holding Account}} were the first listed.<br>
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| :{{ietaprov|5.1(d)}} A {{ietaprov|Transfer}} shall be considered to be completed for the purposes of this Agreement when the relevant {{ietaprov|Period Traded Allowance}}s are received in the relevant {{ietaprov|Receiving Party’s Holding Account}}, whereupon risk of loss related to the {{ietaprov|Period Traded Allowance}}s or any portion of them transfers from the {{ietaprov|Delivering Party}} to the Receiving Party.<br>
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| {{ietaprov|5.2}} Sufficient Allowances. In relation to a {{ietaprov|Transaction}} and a {{ietaprov|PTA Quantity}}, the {{ietaprov|Delivering Party}} shall, subject to Clause {{ietaprov|13}} ({{ietaprov|Force Majeure}} and {{ietaprov|Suspension Event}}), ensure that there are sufficient transferable {{ietaprov|Allowance}}s in the {{ietaprov|Holding Account}} from which the {{ietaprov|Transfer}} is to be effected to ensure that the {{ietaprov|Transfer Request}} will be accepted under the {{ietaprov|System}} at the time at which it is to be accepted in accordance with this {{ietaprov|Agreement}}. <br>
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| {{ietaprov|5.3}} No Encumbrances. The {{ietaprov|Delivering Party}} shall {{ietaprov|Transfer}} to the {{ietaprov|Receiving Party}} the {{ietaprov|Period Traded Allowance}}s free and clear of all liens, security interests, claims and encumbrances or any interest in or to them by any person. A breach of the {{ietaprov|Delivering Party}}’s obligations under this Clause {{ietaprov|5.3}} (the “'''{{ietaprov|No Encumbrances Obligation}}'''”) will have the following consequences:<br>
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| :{{ietaprov|5.3(a)}} this {{ietaprov|Agreement}} and all other Transactions agreed by the Parties under this {{ietaprov|Agreement}} shall continue unaffected; and<br>
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| :{{ietaprov|5.3(b)}} without prejudice to any defences available to the {{ietaprov|Delivering Party}} (including, but not limited to, any defences of statutes of limitation or similar), following written notice of that breach from the {{ietaprov|Receiving Party}} to the {{ietaprov|Delivering Party}} (irrespective of how long after the relevant {{ietaprov|Delivery Date}} such notice is provided) and subject to Clause {{ietaprov|5.3(d)}} below, the Receiving Party:<br>
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| ::5.3(b)(i) shall determine the {{ietaprov|Encumbrance Loss}} arising from that breach (the “'''{{ietaprov|Encumbrance Loss Amount}}'''”) either on the date such notice is deemed to be received or as soon as reasonably practicable thereafter; and<br>
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| ::5.3(b)(ii) shall notify the {{ietaprov|Delivering Party}} of such {{ietaprov|Encumbrance Loss Amount}} due, including detailed support for its calculation.<br>
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| The {{ietaprov|Receiving Party}} is not required to enter into {{ietaprov|Replacement Transactions}} in order to determine such {{ietaprov|Encumbrance Loss Amount}}.<br>
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| <br>
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| :{{ietaprov|5.3(c)}} By no later than the third (3rd) {{ietaprov|Banking Day}} after the later of (i) receipt of a valid invoice in connection with such {{ietaprov|Encumbrance Loss Amount}} and (ii) receipt of the abovementioned notice of such {{ietaprov|Encumbrance Loss Amount}}, the {{ietaprov|Delivering Party}} shall pay the {{ietaprov|Encumbrance Loss Amount}} to the Receiving Party, which amount shall bear interest in accordance with Clause {{ietaprov|9.5}} (Interest). Upon payment of the {{ietaprov|Encumbrance Loss Amount}} by the Delivering Party, the Parties shall have no further obligations in respect of that {{ietaprov|Transaction}} and that breach. The {{ietaprov|Receiving Party}} acknowledges that its exclusive remedies in respect of such breach are those set out in this Clause {{ietaprov|5.3.<br>
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| :{{ietaprov|5.3(d)}} Where}} a breach of the {{ietaprov|No Encumbrances Obligation}} is caused by the {{ietaprov|Transfer}} of an {{ietaprov|Affected Allowance}}, the {{ietaprov|Delivering Party}} shall be liable for the {{ietaprov|Encumbrance Loss Amount}} if, at the date it first acquired, received or purchased such {{ietaprov|Affected Allowance}} it was not acting in good faith; otherwise, the {{ietaprov|Delivering Party}} shall only be liable for the {{ietaprov|Encumbrance Loss Amount}} if, and without prejudice to any other defences available to the {{ietaprov|Delivering Party}} (including, but not limited to, any defences of statutes of limitation or similar):<br>
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| ::5.3(d)(i) the Receiving Party, whether or not the holder of such {{ietaprov|Affected Allowance}}, who is subject to a claim of the {{ietaprov|Original Affected Party}}, has, in order to resist or avoid any {{ietaprov|Encumbrance Loss Amount}} from arising, used its best endeavours to defend such a claim in respect of that {{ietaprov|Affected Allowance}} (including, if available, by relying on Article 40 of the {{ietaprov|Registries Regulation}} or any equivalent legal principle under its applicable national law) and was unsuccessful (other than for reasons of its own lack of good faith); or <br>
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| ::5.3(d)(ii) the Receiving Party, whether or not the holder of such {{ietaprov|Affected Allowance}}, who acted in good faith in respect of its purchase of such {{ietaprov|Affected Allowance}} and who is subject to a claim of a third party (other than the {{ietaprov|Original Affected Party}}) in respect of that {{ietaprov|Affected Allowance}}, has used all reasonable endeavours to mitigate the {{ietaprov|Encumbrance Loss Amount}}.<br>
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| <br> | | <br> |
| {{ietaprov|6}} Effecting Transfers<br> | | {{ietaprov|6}} Effecting Transfers<br> |