Section 8.1 Physical Settlement. If “
Physical Settlement” is specified as the
Settlement Method in the related
Confirmation (or if Physical Settlement is applicable as the
Fallback Settlement Method in accordance with Section
6.1 (
Auction Settlement)),
Buyer shall, subject to Sections
5.1 (Settlement),
10.1 (Settlement Suspension) and
11.2(c)(ii) (Additional Representations and Agreements for Physical Settlement), on or prior to the
Physical Settlement Date, Deliver to
Seller the
Deliverable Obligations specified in the
Notice of Physical Settlement or any
NOPS Amendment Notice, as applicable, and
Seller shall pay to
Buyer the
Physical Settlement Amount that corresponds to the
Deliverable Obligations that
Buyer has Delivered. If
Buyer Delivers
Deliverable Obligations in an amount greater than the
Deliverable Obligations specified in the
Notice of Physical Settlement or any
NOPS Amendment Notice, as applicable,
Seller shall not be required to pay more than the
Physical Settlement Amount that corresponds to the
Deliverable Obligations specified in the
Notice of Physical Settlement or any
NOPS Amendment Notice, as applicable. For purposes of the foregoing, Delivery by
Buyer and payment by
Seller shall be made in accordance with market practice applicable to the
Deliverable Obligation on the
Delivery Date.
In the case of
Deliverable Obligations that are (a)
Borrowed Money,
Buyer shall Deliver
Deliverable Obligations with an
Outstanding Principal Balance and (b) not
Borrowed Money,
Buyer shall Deliver
Deliverable Obligations with a
Due and Payable Amount (or, in the case of either (a) or (b), the equivalent Currency Amount of any such amount), in each case in the aggregate amount as of the relevant
Delivery Dates that is equal to the
Floating Rate Payer Calculation Amount; provided that
Buyer may Deliver
Deliverable Obligations with an
Outstanding Principal Balance or a
Due and Payable Amount, as applicable, (or the equivalent Currency Amount of any such amount), in the aggregate amount as of the relevant
Delivery Dates that is either (i) greater than the
Floating Rate Payer Calculation Amount, in which case
Seller shall not be required to pay more than the
Physical Settlement Amount to Buyer, or (ii) less than the
Floating Rate Payer Calculation Amount, in which case
Seller shall not be required to pay more than the proportion of the
Physical Settlement Amount that corresponds to the
Deliverable Obligations Delivered, subject to Section
11.2(c)(ii) (Additional Representations and Agreements for Physical Settlement).