Whole Section

  • 7.12 Recovery of Sums

    • 7.12.1

      Subject to the provisions of this Rule, if any amount paid out of the Clearing Fund pursuant to Rule 7.8 and in accordance with Rule 7.9 is subsequently recovered by CDP in whole or in part, CDP shall credit the amount so received to the Clearing Fund in the reverse of the Order in which it was paid out. Where Contributions by Clearing Members had been paid out of the Clearing Fund, the amount so received for the relevant Stage of the Order shall be paid back to such Clearing Members on a pro-rata basis of each Clearing Member's required Contribution to the aggregate required Contributions from all Clearing Members other than the Defaulting Clearing Member for that relevant Stage of the Order, provided that if any Clearing Member has not paid any part of the moneys required to be paid into the Clearing Fund pursuant to Rule 7.10, such Clearing Member's Contribution of such amount shall be paid first into the Clearing Fund together with any interest accruing thereon from the date such amount was due to date of actual payment of such amount, and any excess shall be paid back to such Clearing Member. Where contributions by CDP have been paid out of the Clearing Fund, the amount so received shall be paid towards the relevant stage of the Order and not to CDP.

      Amended on 3 May 20113 May 2011.

    • 7.12.2

      Where insurance moneys have been paid out of the Clearing Fund in any Relevant Period, any recovered moneys shall notwithstanding Rule 7.12.1 above:—

      (1) if the recovery is made in that Relevant Period, be paid to the insurer provided that the insurer agrees that the recovered moneys shall be used to reset the applicable limits on insurance coverage for the Relevant Period under the insurance policy; and
      (2) if the recovery is not made in that Relevant Period and:—
      (a) no other drawing has subsequently been made on the Clearing Fund whether or not in that Relevant Period), be paid to the insurer; or
      (b) drawings have subsequently been made on the Clearing Fund (whether or not in that Relevant Period), be paid in the reverse of the Stages of the Order in which such drawings were made if moneys have not already been recovered for such Stages, and any excess shall be paid to the insurer.