Template:EUA Annex (d)(ii)(1): Difference between revisions

::(X) in respect of an {{euaprov|Allowance Forward Transaction}}, {{euaprov|Receiving Party}} shall pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} an amount equal to the {{euaprov|Allowance Purchase Price}} multiplied by the {{euaprov|Number of Allowances}} and, in respect of an {{euaprov|Allowance Option Transaction}}, {{euaprov|Receiving Party}} shall pay to {{euaprov|Delivering Party}} on the {{euaprov|Payment Date}} an amount equal to the {{euaprov|Allowance Strike Price}} multiplied by the number of {{euaprov|Allowances to be Delivered}} (and, in each case, for purposes of determining the {{euaprov|Payment Date}}, the date of actual delivery shall be deemed to be the {{euaprov|Delivery Date}}); and

::(Y) {{euaprov|Delivering Party}} shall pay to {{euaprov|Receiving Party}} on the {{euaprov|Payment Date}} (determined in accordance with Part [7]{{euaprov|(d)(ii)(1)}}(A)(X) above) interest on an amount equal to the number of {{euaprov|Allowances}} that were required to be delivered on the {{euaprov|Delivery Date}} (but which were not delivered on such date) multiplied by either the {{euaprov|Allowance Purchase Price}} (in respect of an {{euaprov|Allowance Forward Transaction}}) or the {{euaprov|Allowance Strike Price}} (in respect of an {{euaprov|Allowance Option Transaction}}) for the period from (and including) the original {{euaprov|Delivery Date}} to (but excluding) the date of actual delivery at the {{euaprov|Default Rate}}.<br>

::(X) if “{{euaprov|Excess Emissions Penalty}}” is specified not to be applicable in the Annex to this Part [7] or the {{euaprov|Confirmation}} for the relevant {{euaprov|EU Emissions Allowance Transaction}}, or if “{{euaprov|Excess Emissions Penalty}}” is specified to be applicable in the Annex to this Part [7] or the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}} and an {{euaprov|EEP Risk Period}} is specified in that Confirmation but the {{euaprov|Delivery Date}} does not fall within that {{euaprov|EEP Risk Period}}, {{euaprov|Receiving Party}} may, by written notice to {{euaprov|Delivering Party}}, terminate the parties’ obligations under “{{euaprov|Physical Settlement}}” above and {{euaprov|Delivering Party}} shall pay to {{euaprov|Receiving Party}} an amount determined in accordance with paragraph (1) of {{euaprov|Receiving Party’s Replacement Cost}} (if a positive number) on the first succeeding {{euaprov|Business Day}}, adjusted to take into account any amount previously paid (which, for the avoidance of doubt, shall not include any Premium paid by the Buyer in respect of an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} in respect of the relevant {{euaprov|EU Emissions Allowance Transaction}}; or

::(Y) if “{{euaprov|Excess Emissions Penalty}}” is specified to be applicable in the Annex to this Part [7] or the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}} and, if an {{euaprov|EEP Risk Period}} is specified in the Confirmation for the relevant {{euaprov|EU Emissions Allowance Transaction}}, the {{euaprov|Delivery Date}} falls within that {{euaprov|EEP Risk Period}} for the relevant {{euaprov|EU Emissions Allowance Transaction}},  {{euaprov|Receiving Party}} may, by written notice to {{euaprov|Delivering Party}}, terminate the parties’ obligations under “Physical Settlement” above and {{euaprov|Delivering Party}} shall pay to {{euaprov|Receiving Party}} an amount determined in accordance with paragraph (2) of {{euaprov|Receiving Party’s Replacement Cost}} (if a positive number) on the first Business Day following the day on which {{euaprov|Receiving Party}} is able to effect a {{euaprov|Buy-In}} (which may be a {{euaprov|Buy-In}}, on any such date, of less than the entire number of {{euaprov|Undelivered Allowances}}) if and to the extent that paragraphs (2)(A)(I) or (2)(A)(II)(X) of {{euaprov|Receiving Party’s Replacement Cost}} apply, or the first Business Day following the day on which {{euaprov|Receiving Party}} is able to effect a purchase of {{euaprov|Allowances}} in accordance with paragraph (2)(A)(II)(Y) of {{euaprov|Receiving Party’s Replacement Cost}}, if and to the extent that paragraph applies, in either case adjusted to take into account any amount previously paid (which, [[for the avoidance of doubt]], shall not include any Premium paid by the Buyer in respect of an {{euaprov|Allowance Option Transaction}}) by {{euaprov|Receiving Party}} to {{euaprov|Delivering Party}} in respect of the {{euaprov|EU Emissions Allowance Transaction}}; or