Common use of Delayed Settlement Clause in Contracts

Delayed Settlement. (i) If the Baskets to be redeemed are not delivered by the time required pursuant to paragraph (e) above, upon the approval of the Sponsor, in the Sponsor’s sole discretion, the Transfer Agent at the direction of the Sponsor shall: (A) cause the payment of the aggregate Cash Amount to the extent whole Baskets are received by such time. Any remainder of the aggregate Cash Amount shall be delivered on the next Business Day to the extent any remaining whole Baskets are received by noon (New York time) on such Business Day; provided that by such time and on or before such date the conditions set forth in clauses (i) and (ii) of paragraph (f) above shall have been met with respect to such remaining whole Baskets. Any further outstanding amount of the Redemption Order may be cancelled by the Sponsor, in its sole discretion; (B) deliver the aggregate Cash Amount prior to delivery of the Baskets to be redeemed if the Authorized Participant has collateralized its obligation to deliver the Redemption Unit through DTC’s book-entry system on such terms as the Sponsor may, in its sole discretion, agree; or (C) cause the payment of the aggregate Cash Amount for each Basket redeemed by the Authorized Participant to the account of the Authorized Participant via either (x) the CNS clearing process of NSCC, as such processes have been enhanced to effect creations and redemptions of Baskets, or (y) the facilities of DTC on a DVP basis on a date that is as late as T+5; provided that by such time and on or before such date the conditions set forth in clauses (i) and (ii) of paragraph (f) above shall have been met. (ii) The Sponsor may, in its sole discretion, require the Authorized Participant to pay a fee in connection with any delayed settlement pursuant to clause (i) of this paragraph (g) in such amount as the Sponsor may determine.