Common use of Client Default Clause in Contracts

Client Default. In the event that the CLIENT defaults and is replaced by BRED in accordance with applicable legislation, BRED shall be considered to have full ownership of the financial instruments acquired on behalf of the CLIENT. If the Account has a negative balance, the CLIENT shall irrevocably authorise BRED to sell without prior notice all or some of the CLIENT’s financial instruments in order to redress said position. Similarly, should any CLIENT account open or due to be opened in the bank’s books show a negative balance, the CLIENT authorises BRED to offset any negative balances against any positive balances in said account(s). Finally, BRED and the broker are entitled to exercise a right of retention over the cash and financial instruments until all amounts payable by the CLIENT for any reason whatsoever have been settled.