Template:Nutshell EUA Annex (d)(i)(4)

(d)(i)(4) Settlement Disruption Event

(A) Notification: Either party may notify the other party in writing of a Settlement Disruption Event and the impacted Transactions. If it is the affected party, it must also give details of the Settlement Disruption Event and a non-binding estimate of the extent and likely duration of the disruption on its obligations.

(B) Effect: Upon a Settlement Disruption Event both parties’ obligations will be suspended, subject to Continuing Settlement Disruption Event below, until the Settlement Disruption Event no longer prevents settlement. During the Settlement Disruption Event, the affected party must use all reasonable endeavours to settle.

(C) Delayed Performance: Subject to Continuing Settlement Disruption Event below, once the Settlement Disruption Event no longer prevents settlement, both parties must, promptly and within two Delivery Business Days, resume their obligations under the Transactions.

(D) Continuing Settlement Disruption Event: Where a Settlement Disruption Event continues:

(I) for 9 Delivery Business Days after the originally scheduled Delivery Date; or, if shorter:

(II) until a Reconciliation Deadline falling on or after the original Delivery Date; or, if shorter:

(III)until the day 3 Delivery Business Days before the End of Phase Reconciliation Deadline falling on or after the original Delivery Date —

then at that time there will be an Illegality where the affected Transaction is the sole Affected Transaction, both parties are Affected Parties, there is no Waiting Period and, if an Early Termination Date results, when determining the Early Termination Amount

if “Payment on Termination for Settlement Disruption” applies, the suspended obligations will resume on the Early Termination Date, and

if it does not, the parties will have no further obligations after the Settlement Disruption Event (other than for any Unpaid Amounts); provided that:

(i) Delivering Party must promptly refund to Receiving Party any amount Receiving Party paid under any Allowance Forward Transaction or Call; and

(ii) Receiving Party must promptly refund to Delivering Party any amount Delivering Party paid under a Put

other than in respect of delivered Allowances, together with interest from the payment date until the date of termination of the Transaction at the overnight deposit rate for the relevant currency.