Template:AIFMD 21(12): Difference between revisions

12. The {{isdaprov|depositary}} shall be liable to the {{isdaprov|AIF}} or to the investors of the {{isdaprov|AIF}}, for the loss by the {{isdaprov|depositary}} or a third party to whom the custody of {{isdaprov|financial instruments}} held in custody in accordance with point (a) of paragraph 8 has been delegated. <br>

In the case of such a loss of a {{isdaprov|financial instrument}} held in custody, the {{isdaprov|depositary}} shall return a {{isdaprov|financial instrument}} of identical type or the corresponding amount to the {{isdaprov|AIF}} or the {{isdaprov|AIFM}} acting on behalf of the {{isdaprov|AIF}} without undue delay. The {{isdaprov|depositary}} shall not be liable if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary.  <br>

The {{isdaprov|depositary}} shall also be liable to the {{isdaprov|AIF}}, or to the investors of the {{isdaprov|AIF}}, for all other losses suffered by them as a result of the {{isdaprov|depositary}}’s [[negligent]] or intentional  failure to properly fulfil its obligations pursuant to this Directive. <br>