Common use of Settlement Failure Clause in Contracts

Settlement Failure. 8.1 The Authority reserves the right to levy a penalty fee on an Eligible Counterparty that fails to settle any of the legs of the confirmed transactions. The penalty fee for failure to settle the first leg of a transaction to obtain SGD shall be one (1) day’s interest on the transaction amount. The penalty fee for failure to settle the second leg of a transaction to obtain SGD shall be an interest charge for the number of days the outstanding amount (principal + interest) remains unsettled. 8.2 Any: (a) SGS; (b) MAS Bills; (c) S$ sukuk; (d) S$ debt securities; (e) foreign currencies; or (f) foreign currency denominated securities delivered to the Authority under the SF shall be returned to the Eligible Counterparty after the Authority receives the due amount (i.e. penalty fee (if any) + amount due under the second leg of the repurchase transaction, collateralised loan or FC Swap). The interest rate used for penalty fees shall be 2% above the transacted rate for the deal. An Eligible Counterparty which fails to settle any of the legs of the transactions may also be suspended from participating in the SF.