Article 3 Exchange of collateral agreement

The exchange of collateral agreement referred to in point (g) of the first subparagraph of Article 2(2) shall include at least the following terms:

1. (a)

   the levels and type of collateral required;

2. (b)

   the segregation arrangements;

3. (c)

   the netting set to which the exchange of collateral refers;

4. (d)

   the procedures for notification, confirmation and adjustment of margin calls;

5. (e)

   the procedures for settlement of margin calls for each type of eligible collateral;

6. (f)

   the procedures, methods, timeframes and allocation of responsibilities for the calculation of margins and the valuation of collateral;

7. (g)

   the events that are considered to be default or termination events;

8. (h)

   the law applicable to the non-centrally cleared OTC derivative contract;

9. (i)

   the law applicable to the exchange of collateral agreement.