Article 18
(Operation in the Circumstances of Insufficient Deposit Balance for Settlement)
Where the balances in a clearing entity’s deposit account mentioned in the foregoing article are insufficient to pay a given day’s clearing balances, the clearing entity shall make up the shortfall within the time period prescribed by the Bank or a correspondent bank of the Bank.
A clearinghouse shall draft a response mechanism on how to complete the clearing operation on the same day when a clearing entity violates the provisions of the preceding paragraph and becomes unable to pay its clearing balance for the day, and report the same to the Bank for recordation.
Where a clearing entity is unable to pay a given day’s clearing balance that might seriously undermine the clearing operation, the clearinghouse may, with approval of its board of directors, temporarily suspend such entity’s clearing operation and report the same to the Bank for recordation. The Bank in turn will forward the information to the Financial Supervisory Commission.
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Article 26
(Handling of Violations)
Where a clearing entity‘s violation of these Regulations or [other] negotiable instrument clearing rules and regulations is of serious nature and might seriously undermine the clearing operations, a clearinghouse may, with approval of its board of directors, temporarily suspend such entity’s clearing operations and report the same to the Bank for recordation. The Bank in turn will forward the information to the Financial Supervisory Commission.
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