Regulation 58 Release of credit cover

(1)

This paragraph applies if A has provided credit cover and one of the following circumstances applies—

(a)

A is no longer required, under regulation 60, to maintain any credit cover;

(b)

A has provided further credit cover under regulation 57(3) to replace the credit cover previously provided, and the Settlement Body has approved the replacement credit cover; or

(c)

the amount of credit cover provided by A and approved by the Settlement Body exceeds the required amount.

(2)

Where paragraph (1) applies—

(a)

A may, by giving notice in writing to the Settlement Body, request the Settlement Body to release—

(i)

if paragraph (1)(a) applies, all or part of the credit cover;

(ii)

if paragraph (1)(b) applies, the credit cover that has been replaced;

(iii)

if paragraph (1)(c) applies, an amount of credit cover not exceeding the amount by which the credit cover referred to in paragraph (1)(c) exceeds the required amount; and

(b)

the Settlement Body must release that amount of credit cover as soon as reasonably practicable.

(3)

Credit cover is released—

(a)

in the case of a cash deposit, by repaying the principal to A; and

(b)

in the case of a letter of credit, by issuing notice to A confirming that the letter of credit is no longer required.