Common use of Remedy for Failure to Honour Initial Margin or Variation Margin Requirements Clause in Contracts

Remedy for Failure to Honour Initial Margin or Variation Margin Requirements. If AFEX does not receive Initial Margin or Variation Margin when due, AFEX, at its option and in its sole discretion, may close out any or all of Client’s open Orders and apply the proceeds first to reimburse AFEX for the amounts due under the Orders, including all Losses, and remit the balance of the proceeds, if any, to Client. If the proceeds of disposition are insufficient to fully satisfy the amount owing to AFEX, then Client shall pay to AFEX the difference within one (1) clear Business Day.