CHAPTER VSECURITIES

SECTION 3Release and forfeiture

Article 55Forfeiture

1

Once the competent authority is aware of circumstances giving rise to forfeiture of the security, in whole or in part, it shall without delay demand the party required to meet the obligation to pay the sum forfeited, allowing up to 30 days from the day of receipt of demand for payment.

Where payment has not been made at the end of that period, the competent authority shall:

a

without delay clear any security of the type described in Article 51(1)(a) to the appropriate account;

b

without delay require the guarantor referred to in Article 51(1)(b) to pay, allowing up to 30 days from the day of receipt of demand for payment;

c

without delay take steps to:

  1. (i)

    convert the securities described in Article 51(2)(b) and (c) into money sufficient to recover the sum due;

  2. (ii)

    clear pledged cash deposits referred to in Article 51(2)(a) to its own account.

The competent authority may without delay clear any security of the type described in Article 51(1)(a) to the appropriate account without first requiring the person concerned to effect payment.

2

Without prejudice to paragraph 1,

a

where the decision to forfeit a security is taken but on appeal is subsequently postponed in accordance with F1the law applying in the constituent nation, the party concerned shall pay interest on the sum actually forfeited over the period starting 30 days from the day of receipt of the demand for payment as referred to in paragraph 1 and ending on the day prior to the payment of the sum actually forfeited;

b

where following the outcome of the appeal procedure the party concerned is asked to pay within 30 days the sum forfeited, for the purposes of calculating interest the F2relevant authority may consider payment to be made on the 20th day following the date of such request;

c

the rate of interest applicable is calculated in accordance with F3the law applying in the constituent nation, but shall in no case be lower than the interest rate applicable in case of recovery of national amounts;

F4d

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e

F5A relevant authority may claim periodically an increase of the security in respect of the interest involved.

F63

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