81,841
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
::{{eqderivprov|12.9(b)(ii)}} If “'''{{eqderivprov|Failure to Deliver}}'''” applies | ::{{eqderivprov|12.9(b)(ii)}} If “'''{{eqderivprov|Failure to Deliver}}'''” applies, then a {{eqderivprov|Failure to Deliver}} will not be an {{isdaprov|Event of Default}} but the “'''{{eqderivprov|Delivering Party}}'''” must: | ||
:::(A) notify the “'''{{eqderivprov|Receiving Party}}'''” that | :::(A) notify the “'''{{eqderivprov|Receiving Party}}'''” that the {{eqderivprov|Failure to Deliver}} has occurred within one {{eqderivprov|Clearance System Business Day}} of the {{eqderivprov|Exercise Date}} (for {{eqderivprov|Option Transaction}}s) and at least one {{eqderivprov|Settlement Cycle}} prior to the {{eqderivprov|Settlement Date}} (for {{eqderivprov|Forward Transaction}}s and {{eqderivprov|Equity Swap Transaction}}s; and | ||
:::(B) deliver to the {{eqderivprov|Receiving Party}} on the {{eqderivprov|Settlement Date}} | :::(B) deliver to the {{eqderivprov|Receiving Party}} on the {{eqderivprov|Settlement Date}} the {{eqderivprov|Shares}} that it can deliver on such date; | ||
::and the {{eqderivprov|Receiving Party}}’s corresponding payment or delivery obligation to the {{eqderivprov|Delivering Party}} will be proportionately reduced. | ::and the {{eqderivprov|Receiving Party}}’s corresponding payment or delivery obligation to the {{eqderivprov|Delivering Party}} will be proportionately reduced. | ||
::Thereafter: | |||
::'''For {{eqderivprov|European Option}}s and {{eqderivprov|Forward Transaction}}s''': The {{eqderivprov|Receiving Party}} may terminate the {{eqderivprov|Transaction}} effective immediately by | :: (I) '''For {{eqderivprov|European Option}}s and {{eqderivprov|Forward Transaction}}s''': The {{eqderivprov|Receiving Party}} may terminate the remaining {{eqderivprov|Transaction}} effective immediately by notice to the {{eqderivprov|Delivering Party}} and must (as {{eqderivprov|Determining Party}}) determine the related {{eqderivprov|Cancellation Amount}}; | ||
::(II) '''For {{eqderivprov|American Option}}s and {{eqderivprov|Bermuda Option}}s''': The {{eqderivprov|Receiving Party}} may terminate that part of the {{eqderivprov|Transaction}} comprising the exercised but not settled {{eqderivprov|Option}}s effective immediately by notice to the {{eqderivprov|Delivering Party}} and must (as {{eqderivprov|Determining Party}}) determine the related {{eqderivprov|Cancellation Amount}}; | |||
::'''For {{eqderivprov|American Option}}s and {{eqderivprov|Bermuda Option}}s''': The {{eqderivprov|Receiving Party}} may terminate that part of the {{eqderivprov|Transaction}} comprising the exercised {{eqderivprov|Option}}s effective immediately by | ::(III)'''For {{eqderivprov|Equity Swap Transaction}}s''': The {{eqderivprov|Receiving Party}} may terminate that part of the {{eqderivprov|Transaction}} consisting of the unsettled deliveries effective immediately by notice to the {{eqderivprov|Delivering Party}} and must (as {{eqderivprov|Determining Party}} determine the {{eqderivprov|Cancellation Amount}}; | ||
::(IV) '''For unexercised {{eqderivprov|American Option}}s and {{eqderivprov|Bermuda Option}}s to which {{eqderivprov|Multiple Exercise}} applies, and for {{eqderivprov|Equity Swap Transaction}}s where a {{eqderivprov|Settlement Date}} has not occurred''': The {{eqderivprov|Receiving Party}} may elect within one {{eqderivprov|Settlement Cycle}} of the affected {{eqderivprov|Settlement Date}} to terminate the remainder of the {{eqderivprov|Transaction}} upon two {{eqderivprov|Scheduled Trading Day}}s’ notice, and must (as {{eqderivprov|Determining Party}}) determine the {{eqderivprov|Cancellation Amount}}. <br> | |||
::'''For {{eqderivprov|Equity Swap Transaction}}s''': The {{eqderivprov|Receiving Party}} may terminate that part of the {{eqderivprov|Transaction}} consisting of the | |||
::'''For unexercised {{eqderivprov|American Option}}s and {{eqderivprov|Bermuda Option}}s to which {{eqderivprov|Multiple Exercise}} applies, and for {{eqderivprov|Equity Swap Transaction}}s where a {{eqderivprov|Settlement Date}} has not occurred''': The {{eqderivprov|Receiving Party}} may elect within one {{eqderivprov|Settlement Cycle}} of the {{eqderivprov|Settlement Date}} |