13. Items Received in Trust.

All bank notes, cheques, bills of exchange and other items (hereinafter referred to as "items") delivered through the Clearing House to a member in the exchanges of the day, shall be received by such member as a trustee only, and not as its own property, to be held upon the following trust, namely, upon payment by such member at the proper hour to the clearing bank of the balance (if any) against it, to retain such items freed from said trust; and in default of payment of such balance, to return immediately and before 12.30 p.m., the said items unmarked and unmutilated through the Clearing House to the respective members, and the fact that any item cannot be so returned shall not relieve the member from the obligation to return the remaining items, including the amount of the member's own notes so delivered in trust.

Upon such default and return of said items, each of the other members shall immediately return all items which may have been received from the member so in default, or pay the amount thereof to the defaulting member through the Clearing House. The items returned by the member in default shall remain the property of the respective members from which they were received, and the Clearing House Manager shall adjust the settlement of balances anew.

A member receiving through the Clearing House such items as aforesaid, shall be responsible for the proper carrying out of the trust upon which the same are received as aforesaid, and shall make good to the other members respectively all loss and damage which may be suffered by the default in the carrying out of such trust.

14. Provision for Default.

In the event of any member receiving exchanges through the Clearing House making default in payment of its debit balance (if any) then in lieu of its returning the items received by it as provided by Rule 13, the Board of Management may require the members to which the defaulting member, on an account being taken of the exchanges of the day between it and the other members, would be a debtor, in proportion to the amounts which on such accounting, respectively due to them, to furnish the Chairman of the Clearing House for the time being with the amount of the balance due by the defaulting member, and such amount shall be furnished accordingly, and shall be paid by the Chairman to the clearing bank, which shall then pay over to the creditor members the balances due them in accordance with Rule 11. The said funds for the Chairman shall be furnished by being deposited in the clearing bank for the purpose aforesaid. The defaulting member shall repay to the Chairman for the time being, or to his successor in office, the amount of such debit balance and interest thereon, and the said Chairman, or his successor in office, shall be entitled to recover the same from the defaulting member. Any moneys so recovered shall be held in trust for and deposited in the clearing bank for the benefit of the members entitled thereto.

15. Re-Adjustment of Balances.

(a) If a member neglects or refuses to pay its debit balance to the clearing bank, and if such default be made not because of inability to pay, the Board of Management may direct that the exchanges for the day between the defaulting member and each of the other members be eliminated from the Clearing House statements, and that the settlements upon such exchanges be made directly between the members interested, and not through the Clearing House. Upon such direction being given, the Clearing House Manager shall comply therewith and adjust the settlement of balances anew, and the settlements of the exchanges so eliminated shall thereupon be made directly between the members interested.

(b) If the representatives of any member fall to appear within five minutes after the specified time appointed for clearing, the said member shall be excluded from the exchanges of the day, and must make Its clearings at the counters of the other members.

16. Suspension of Clearings.

Should any case arise to which, in the opinion of the Board of Management, the foregoing rules are inapplicable, or in which their operation would be inequitable, the said Board of Management shall have power at any time to suspend the clearings and settlements of the day; but immediately upon such suspension the Board shall call a meeting of the members of the Clearing House to take such measures as may be necessary.

17. By-Laws.

Every Clearing House now existing, or that may hereafter be established, may enact (at a meeting of its members called for that purpose) by-laws, rules and regulations for the government of its members, not inconsistent with these rules, and may fix therein among other things:

1. The name of the Clearing House.

2. The number of members of the Board of Management and the quorum thereof.

3. The date, time and place for the Annual Meeting of the members.

4. The hours for making exchanges, and for the payment of the balances to or by the clearing bank.

5. The manner in which cash is to be cleared.

6. Proper matter for clearings except as provided by these rules.

Any by-law, rule, or regulation passed or adopted under this clause may be amended at any meeting of the members, provided that not less than two weeks' notice of such meeting, and of the proposed amendment or amendments, has been given.