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Claims as a Result of Penalties and Fines

Claims as a Result of Penalties and Fines

Recalling counterparties should endeavor to partially settle sales wherever possible, and therefore should accept partial returns or recalls. Recall recipients will only be liable for 'sale fail' costs for the portion of the sale where they have failed to return stock in the required timeframe. Partial settlement can be requested within market deadlines following receipt of shares or notification that the recall recipient is insufficient to deliver. Counterparties should seek to issue claims within 30 days but within a maximum of 60 days of the settlement of the sale. The recommended minimum claim is 500 USD or equivalent, or as bilaterally agreed between counterparties. The claim recipient must endeavor to pay the claim within the same time frames of 30 days where possible but within a maximum of 60 days. Claim issuer should provide the following information on claims: *Date, time and the name of the borrower contact to whom the recall was issued *Trade and settlement date of recall *Actual settlement date of recall *Security ID and description *Quantity recalled *Cash amount of recall (based on sale price) *Claim calculation (i.e. cash amount of recall, interest rate, days of fail/100/360 or 366 depending on market) *Reason for claim *Payment instructions (IBP-138 AGREED IN 2017)

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