Common use of Payment and Delivery Instructions Clause in Contracts

Payment and Delivery Instructions. In some securities markets, securities deliveries and payments therefor may not be, or are not customarily, made simultaneously. Accordingly, notwithstanding the Client’s Instruction to deliver Securities against payment or to pay for Securities against delivery, the Bank will process Securities deliveries and receipts on a delivery-versus-payment or receipt-versus-payment basis as appropriate to the extent that it is the established market practice to do so. In some Local Jurisdictions, it may be that, in accordance with the market practice, Securities deliveries are made free of payment and not against Cash payment. Accordingly, notwithstanding anything to the contrary in this Agreement, the Client will bear the risk that the recipient of Securities may fail to make payment or return such Securities or the proceeds of their sale to the Client, and that the recipient of payment for Securities may fail to deliver the Securities (such failure to include without limitation delivery of forged or stolen Securities) or to return such payment, in each case whether such failure is total or partial or merely a failure to perform on a timely basis. The Bank will not be liable to the Client for any Losses it suffers as a result of any of the foregoing events. Notwithstanding the Client’s Instruction to deliver securities against payment or to pay for Securities against delivery, the Bank may make or accept payment for, or delivery of, Securities at such time and in such form and manner as is in accordance with New York law and the customs of New York Securities market