1. Subject to [5. below] and [Consolidated Requirements Part 2 > General Operational Matters > Central Accounting > Central Accounting System > System transactions involving defaulters], prior to each settlement date (the ‘‘relevant settlement date’’) the Society shall calculate in respect of each participant and in respect of each System currency:
(a) the aggregate amount due to be paid to that participant by the other participants under all System transactions of which the Society has notice which are denominated in that System currency and are due to be settled on the relevant settlement date (the ‘‘entitlements’’);
(b) the aggregate amount due to be paid by that participant to other participants under all System transactions of which the Society has notice which are denominated in that System currency and which are due to be settled on the relevant settlement date (the ‘‘gross payments’’).
2. If the entitlements exceed the gross payments the amount of such excess shall, subject to [paragraph 4. in Consolidated Requirements Part 2 > General Operational Matters > Central Accounting > Central Accounting System > Obligations to fund settlements], be directly credited or otherwise paid by the Society to the participant on the relevant settlement date.
3. If the gross payments exceed the entitlements, the amount of such excess shall be directly debited by the Society from such participant’s account(s) or paid by the participant to the Society on the relevant settlement date.
4. The Society shall settle a System transaction otherwise than in accordance with [1. to 3. above] where the Council so directs and the Council shall consider representations from participants that a System transaction that would otherwise be settled in accordance with [1. to 3. above] should not be so settled.
5. Any direction made under [4. above] may be given in respect of a specific System transaction or a specific class of System transaction or be of general application.