Common use of Settlement Failure Clause in Contracts

Settlement Failure. 13.1 The Authority reserves the right to levy a penalty fee on an Applicant that fails to settle any legs of the confirmed transactions. The penalty fee for failure to settle the first leg of a transaction (to deliver SGD cash or SGD securities) 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 deliver USD cash to MAS) shall be an interest charged for the number of days that the outstanding sum (principal + interest) remains unsettled. 13.2 Any collateral delivered to the Authority under the Facility shall be returned to the Applicant after the Authority receives the due amount (i.e. penalty fee (if any) + amount due under the closing leg of the Collateralised Loan or Repo transaction). The interest rate used for penalty fees shall be 2% above the transacted rate for the deal. A successful Applicant that repeatedly fails to settle any of the legs of the transaction may also be suspended from participating in the Facility.