Rule 289. Must Receive Delivery

This rule is no longer applicable effective November 11, 2008.

When a member or member organization has delivered a buy-in notice pursuant to Rule 282, or has re-transmitted notice thereof as provided in Rule 285 [¶2285], the initiating member organization must receive and pay for those securities subject to the buy-in notice if tendered prior to the buy-in of such contract.

If the person who, pursuant to Rule 282 [¶2282], is notified prior to the buy-in by a defaulting member or member organization that some or all of the securities (but not less than one trading unit) are in his or its physical possession and will be promptly delivered, then the order to buy-in shall not be executed with respect to such securities, and the initiating member or member organization who has given the original order to buy-in shall accept and pay for such securities, if tendered promptly.

Damages for non-delivery

If such securities are not promptly tendered, the defaulting member or member organization who has stated that they would be promptly delivered shall be liable for any resulting damages.

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