1. Where -
(a) a participant -
(i) is unable to fulfil its obligations in respect of any System transaction; or
(ii) appears to the Council to be or likely to be so unable; or
(b) an insolvency event occurs in relation to the participant or any relevant principal or beneficiary on whose behalf it acts
the Council may make a default declaration in respect of that participant, whereupon the following provisions of this Part shall apply.
2. Where the Council makes a default declaration, it shall as soon as is reasonably practicable thereafter give written notice of the default declaration to the defaulter and such other persons as the Council thinks fit.
3. The form of the default declaration and the manner in which notice thereof is given to the persons referred to in [2. above] shall be as the Council thinks fit.
4. The Council may at any time it thinks fit revoke a default declaration.
5. Where the Council revokes a default declaration it shall give written notice thereof to the defaulter and such other persons as the Council thinks fit.