Claims as a result of penalties and fines
Counterparties should endeavor to settle partial sales of stock wherever possible, and thereby should accept partial returns or recalls. Counterparties will only be liable for 'sale fail' costs for the portion of the sale that fails due to an outstanding loan position which has been recalled and not delivered in the required timeframe. This is because partial settlements can be requested within market deadlines following receipt of shares and/or notification that the borrower is insufficient to deliver. It should be noted that in some markets, additional charges may be incurred for late settlements, such as TMPG in the USA. Where these charges are incurred due to a failing recall, the failing party is liable. Equally if overdrafts are incurred the injured party may consider making claim for any costs from the failing party. (IBP-140 AGREED IN 2017)
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