4.3 Events of Default

4.3.1           An “event of default” shall occur in relation to a Member if the Exchange determines that the Member is or appears to be unable or likely to become unable to meet its obligations under one or more Market Contracts. Without prejudice to the generality of the foregoing, in making such determination, the Exchange may take any one or more of the following events or circumstances as sufficient grounds for determining that a Member is or appears to be unable or likely to become unable to meet his obligations under one or more Market Contracts:-

a.   failure by a Member duly to perform or comply with any obligation under the terms of a Market Contract;

b.   failure by a Member to comply with any other obligation under a Market Contract or to satisfy any liability to provide margin;

c.   a Member generally not paying its debts as such debts become due, or admitting its inability to pay its debts generally or becoming or being deemed to have become unable to pay its debts within the meaning of Bankruptcy Act (Chapter 20) of Singapore or under the laws of any other jurisdiction, or making a general assignment for the benefit of creditors or any proceedings being instituted or steps taken by or against a Member seeking to adjudicate him bankrupt or insolvent, or seeking liquidation, winding-up, re-organization, dissolution, administration, arrangement, adjustment, protection, relief or composition of the Member or of its debts or seeking the entry of an order for relief or the appointment of a receiver, receiver and manager, liquidator, provisional liquidator, administrator, trustee or other similar official for a Member or for any substantial part of its revenues and assets (except, in each case, for the purpose of a reconstruction or amalgamation by a Member, the terms of which have previously been approved by the Directors) in each case whether under the laws relating to insolvency, bankruptcy or reorganization or relief of debtors of the country of incorporation or domicile of the Member or under the laws of any other jurisdiction or otherwise;

d.   a Member taking any corporate action or other step to authorize, institute or commence any of the actions referred to in (c) above;

e.   any execution, distress, sequestration (a writ that authorizes the seizure of property) attachment or other process being levied or enforced against a Member against any substantial part of its revenues and assets and not being discharged within seven days of being so levied or enforced;

f.   a Member being refused an application for or being suspended or expelled from membership of a regulatory body or being in breach of the Rules as to the financial requirements of membership of a regulatory body or a regulatory body taking or threatening to take any action in relation to the Member under the SFA or taking or threatening to exercise its powers under the Rules to restrict or prohibit the Member from entering into transactions or carrying on its business or dealing with its assets;

g.   any license, authorization, consent or registration at any time necessary to enable a Member to comply with its obligations to the Exchange or to any other Member or to carry on its business in the normal course being evoked, withheld or materially modified or failing to be granted or perfected or ceasing to remain in full force and effect;

h.   a Member being or being declared in default under the default rules of any recognized or designated investment exchange or a recognized clearing house or being or being declared in breach of the terms of the Rules as to the financial requirements of membership of, or being refused membership of, or suspended or expelled from membership of, any recognized market operator or designated investment exchange or recognized clearing house;

i.   a Member, being a partnership, being dissolved; or

j.   any event that would be an event of default under the Relevant Clearing House Rules (regardless of whether the Member is a Clearing Member).

 

4.3.2           An event or circumstance referred to in Rule 4 above shall, without limitation, be deemed to have occurred in relation to a Member being an unincorporated association or partnership if it occurs in relation to a person comprised in such unincorporated association or partnership.

 

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