HOLDING POSITIONS Clause Samples
The "Holding Positions" clause defines the rules and responsibilities regarding the temporary retention or control of assets, funds, or securities by a party. Typically, this clause outlines under what circumstances a party may hold such positions, the duration of the holding, and any conditions that must be met before release or transfer. For example, it may apply to escrow arrangements or situations where assets are held pending the fulfillment of contractual obligations. Its core function is to ensure that assets are managed securely and fairly during transitional periods, thereby protecting the interests of all parties involved and reducing the risk of disputes.
HOLDING POSITIONS. 4.1 A Finance Charge Adjustment or a Finance Credit Adjustment (as the case may be) will be applied in accordance with clause 14.
4.2 If you are the Long Party to an Equity Derivative, and the issuer of the Underlying Reference Instrument makes a cash distribution in respect of the Underlying Reference Instrument (for example, a dividend in respect of a Underlying Reference Instrument which is a share), Admiral will credit to your Account in respect of the Equity Derivative an equivalent amount (less any Taxes and costs) within a reasonable period following the date the cash distribution is paid in respect of the Underlying Reference Instrument corresponding with your Equity Derivative being the amount that will be equal to the cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument. Admiral is not obliged to pay to you any amount under this clause unless and until it receives that amount as the owner of the Underlying Reference Instrument or an equivalent amount under the Hedge Contract acquired in respect of the Equity Derivative. Further, Admiral is not liable to pay to you any amount in excess of the amount (less any Taxes and costs) which Admiral itself receives either as the owner of the Underlying Reference Instrument or pursuant to a Hedge Contract acquired in respect of the Equity Derivative.
4.3 If you are the Short Party to an Equity Derivative, Admiral will debit your Account with an amount that will be equal to the gross (unfranked) cash dividend payable to the holder of the Underlying Reference Instrument multiplied by the quantity (being the Lot and Contract Size applicable to the Transaction) on the first Business Day following the ex dividend date for the Underlying Reference Instrument.
4.4 If the Underlying Reference Instrument on which an Equity Derivative or Indices is issued is subject to an Adjustment Event or possible Adjustment Event, Admiral will determine the adjustment, if any, that will be made to the Contract Value of that Underlying Reference Instrument, the related quantity (being the Lot and Contract Size applicable to the Transaction ) (or both) that would have placed the parties in substantially the same economic position they would have been in had the event not occurred. Admiral will notify you as soon as practicable...