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84X. Default Event Provision

(1) Article 84X(2) applies where a contract or other agreement:
(a) is entered into by an Authorised Firm or a Regulated Financial Institution; or
(b) includes cross-default provisions, and is entered into by another Group entity in the Authorised Firm’s Group or Regulated Financial Institution’s Group,
and the substantive obligations provided for in the contract or agreement (including payment and delivery obligations and provision of collateral) continue to be performed.
(2) The following shall be disregarded in determining whether a Default Event Provision applies:
(a) the exercise of a measure in an Authorised Firm’s Recovery Plan, the removal of impediments to Resolvability of an Authorised Firm, the imposition of an Early Intervention Power, the appointment of a Temporary Administrator, the exercise of a Resolution Power or application of a Resolution Tool, or the recognition of a resolution action taken by a Resolution Authority; and
(b) the occurrence of any event directly linked to the application of such measure, power or action.
(3) A notice under Article 84N may specify additional matters that are to be disregarded under (2) and those matters shall be disregarded.
(4) In this Article, “specified” in relation to a contract or agreement means specified in the contract or other agreement .
(5) In this Article, “Default Event Provision” means a provision of a contract or other agreement:
(a) that has the effect that if a specified event or situation arises:
(i) the agreement is terminated, modified, replaced or suspended;
(ii) rights or duties under the agreement are terminated, modified, replaced or suspended;
(iii) a right accrues to terminate, modify or replace the agreement;
(iv) a right accrues to terminate, modify or replace rights or duties under the agreement;
(v) a set-off or netting right accrues under the agreement;
(vi) a sum becomes payable or ceases to be payable;
(vii) a right accrues to obtain possession, exercise control or enforce any security over any property;
(viii) delivery of anything becomes due or ceases to be due;
(ix) a right to claim a payment or delivery accrues, changes or lapses;
(x) any other right accrues, changes or lapses; or
(xi) an interest is created, changes or lapses; or
(b) that has the effect that a provision of the contract or agreement:
(i) takes effect only if a specified event occurs or does not occur;
(ii) takes effect only if a specified situation arises or does not arise;
(iii) has effect only for so long as a specified event does not occur;
(iv) has effect only while a specified situation lasts;
(v) applies differently if a specified event occurs;
(vi) applies differently if a specified situation occurs; or
(vii) applies differently while a specified situation lasts.