Defaults

If any of the following events occurs with respect to a Clearing Member, the Clearing Member shall be in default if the Clearing Member:

1. fails to fulfill any financial or other obligation to the Clearinghouse or the Exchange;

2. fails to pay when due any amount owing to the Clearinghouse or the Exchange;

3. fails to maintain its registration as a FCM;

4. fails to be a member of NFA;

5. is suspended from membership of, or participation in, any exchange, clearinghouse or Self-Regulatory Organization, or is suspended from dealings in Contracts by any Government Authority or Self-Regulatory Organization, or by act of any judicial authority;

6. makes a materially false misrepresentation, statement, or omission to the Clearinghouse or the Exchange;

7. files for bankruptcy or is deemed to be bankrupt under U.S. federal or state bankruptcy laws, or any comparable non-U.S. laws;

8. is insolvent; or

9. becomes the subject of receivership proceedings, then such Clearing Member, in addition to any other remedy available to the Clearinghouse at law or equity, shall:

   1. be liable to the Clearinghouse as set forth in Rule 819; and

   2. be automatically and without further action suspended by the Clearinghouse as a Clearing Member, except that such suspension may be temporarily postponed by the President if the President determines that such suspension would not be in the best interests of the Clearinghouse.