Blockings

In addition to the cases stated in law the Client can order KELER to block securities. As a general rule, at the request of the Client KELER issues custody certificate of holders on the securities blocked.

During the period of blocking the blocked securities cannot be used in securities operations, with the exception of securities subject to mandatory blocking the Client cannot alienate such securities.

Exceptions to the above: blocking ordered by authorities, blocking expires on the date stated by the authority.

Blocking types:

• Unilateral blocking/unblocking
  The Client can initiate unilateral blocking on its securities account managed by KELER.

• Joint blocking/unblocking
  With joint blocking the client (account holder) and one of its clients jointly submit a blocking request: in this case consent by both parties is required for unblocking before the expiry of securities.
  Joint blocking can be completed in dedicated sub-accounts only that are held in the name of a single account holder.

• Beneficiary blocking/unblocking
  With beneficiary blocking the Client states the beneficiary client with securities account held by KELER that is entitled to unblock or take the blocked securities before expiry.

• • Trilateral blocking/unblocking
    With trilateral blocking the owner of the securities provides collateral to the beneficiary and there is contractual relationship between them. The collateral is required to settle the obligations of the obliged party towards the beneficiary. Trilateral blocking in favor of a third party can be initiated by the party providing the securities that will have to indicate the delivering counterparty of the collateral related trade.