Common use of Default by Client Clause in Contracts

Default by Client. Any failure by the Client to provide such Securities or money to the Broker shall entitle the Broker, without further notice or demand, to forthwith: (a) In the case of an order to sell Securities: HKSCC will close out all short positions that remain unsettled on T+2 by executing compulsory buy-in on behalf of the Broker on T+3. The Account will be debited with the cost of purchase and all related expenses (including but not limited to the Broker’s commission, stamp duty, other transaction costs, and fine imposed by HKSCC); or (b) In the case of an order to purchase Securities: accept delivery of the Securities, charge the Account for the payment to satisfy the Client’s obligation, sell the Securities at a price the Broker believes to be reasonable, and credit the Account for the proceeds thereof (after deduction of the Broker’s commission and other Transaction costs).