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"Temporary Acronym Payment Failure" with respect to Income Presentments occurs when an IPA notifies DTC of issuer's temporary inability to fund Income Presentments (IPs) and therefore the IPA refuses to pay Income Presentments for the Acronym. This is a situation that DTC expects the issuer and/or IPA to resolve by the next Business Day. Using the IPA Decision Making Application (IPA DMA) or automated messaging, IPAs can notify DTC that they refuse to pay Income Presentments for an MMI acronym for which there is a Temporary Acronym Payment Failure. When DTC receives such a notification, it:

  • Temporarily devalues to zero all of the Issuer's MMIs for Collateral Monitor purposes. (The value will be reinstated the following Business Day if the funding is paid.)
  • Automatically submits these transactions for processing the next Business Day.
  • Notifies Participants of the delayed payment.
  • Blocks from DTC's systems all further issuances and maturities by that Issuer for the rest of the Business Day.

    Note: An IPA cannot notify DTC of a Temporary Acronym Payment Failure for the same Acronym on consecutive days. If a Funding Acknowledgment of the Acronym is not made by the IPA on the Business Day following the day of a Temporary Acronym Failure, then DTC will follow the Acronym Payment Failure process with respect to the Acronym as described above.

Note: An IPA may notify DTC of a Temporary Payment Failure for Income Presentments only if the issuer's only obligations that day are IPs.

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