4185. Effect on capital if no positive written confirmation received for a guarantee

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    1. If the Dealer Member's auditor does not receive a reply to a positive confirmation request for accounts within a guarantee arrangement made under clause 4182(2)(vii), the guarantee agreement must not be accepted for margin reduction purposes for the accounts guaranteed until:

      1. the Dealer Member's auditor (or the Dealer Member, if after the Form 1 filing) receives positive written confirmation of the guarantee arrangement, or

      2. the parties sign a new account guarantee agreement.

    2. If in response to a positive or negative confirmation request, a guarantor disputes the validity or extent of the guarantee, that guarantee must not be accepted for margin reduction purposes until:
      1. the dispute is resolved, and
      2. the guarantor provides a confirmation of the account guarantee arrangement as set out in clause 4185(1)(i) or 4185(1)(ii).

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