S.L. 459.1 Art. 9Realisation or valuation.

(1) On the occurrence of a specified event, the collateral taker shall ensure that any action taken in terms of these regulations, including any realisation or valuation of the financial collateral, be conducted in accordance with the terms of the financial collateral arrangement and in any event in a commercially reasonable manner and in good faith so as to ensure fair treatment to the collateral provider and the provisions of articles 122(6) to 122(9) of the Companies Act shall not apply. To the extent that they conflict with these regulations, the provisions of regulation 14(6) and

(7) of the Companies Act (Investment Companies with Variable Share

Capital) Regulations shall not apply.

(2) Where a collateral taker carries out the realisation or valuation in terms of sub-regulation (1) and the value of the financial collateral differs from the amount of the relevant financial obligations then, as the case may be, the following shall apply:

(a) the collateral taker shall reimburse to the collateral provider the amount by which the value of the financial collateral exceeds the relevant financial obligations; or

(b) the collateral provider shall remain liable to the collateral taker for any amount remaining outstanding between the relevant financial obligations and the value of the financial collateral.