The following rules apply when sending an MT 304:
The MT 304 is used to send a new instruction, but it can also be used to amend or cancel a previously sent MT 304.
When cancelling a previously sent message using MT 304:
field 21 must contain the reference, that is, the content of field 20, of the message containing the instruction to be cancelled
the cancellation message must contain a copy of at least the mandatory fields of the original message.
To amend a previously sent message:
field 21 must contain the reference, that is, the content of field 20, of the message containing the instruction to be amended
the amendment message must contain both the unchanged and the changed/new fields of the original message
the amendment message replaces the original message.
The code /NETS/ in fields 53J, 56J and 57J must not be used in Sequence E Net Amount to be Settled.
Should a registered user receive an MT 304 without having a bilateral agreement with the fund manager, the Receiver ought to query the message according to normal banking practice.
When an MT 202 is sent by the receiver of the MT 304 to settle the amount sold, the MT 202 should be sent to the first party indicated in the party identification fields (that is field 53 if present or else field 56 if present or field 57). The content of the next party identification fields 56a and/or 57a and/or 58a of subsequence B2 of the MT 304 directly map onto the same fields in the MT 202. The account number indicated in the party identification fields 56a and 57a of the MT 304 is owned by the party indicated in the same field.
If field 77H specifies ISDA as the type of master agreement, the 1998 FX and Currency Option Definitions (the FX definitions, as published by the International Swaps and Derivatives Association, Inc., the Emerging Markets Traders Association and The Foreign Exchange Committee) as amended and supplemented from time to time are incorporated into this confirmation unless field 14C states another version of the above mentioned FX definitions.
If field 77H specifies ISDA as the type of master agreement and Party A and Party B are parties to an ISDA Master Agreement or an Interest Rate and Currency Exchange Agreement (each an Agreement), this Confirmation constitutes a Confirmation as referred to in, and supplements, forms a part of, and is subject to that Agreement .
If Party A and Party B are not parties to an agreement, this Confirmation evidences a complete and binding agreement between Party A and Party B as to the terms of the Transaction to which this Confirmation relates. Party A and Party B agree to use all reasonable efforts promptly to negotiate, execute, and deliver an agreement in the form of a 2002 ISDA Master Agreement (Multicurrency-Cross Border) (the "ISDA Form"), with such modifications as Party A and Party B will in good faith agree. Upon the execution by Party A and Party B of such an agreement, this Confirmation will supplement, form part of, and be subject to that agreement. All provisions contained or incorporated by reference in that agreement upon its execution will govern this Confirmation except as expressly modified below. Until Party A and Party B execute and deliver that agreement, this Confirmation, together with all other documents referring to the ISDA Form (each a "Confirmation") confirming transactions (each a "Transaction") entered into between Party A and Party B (notwithstanding anything to the contrary in a Confirmation) shall supplement, form a part of, and be subject to an agreement in the form of the ISDA Form as if Party and Party B had executed that agreement in such form (but without any Schedule thereto except for the election of English Law as the governing law, EUR as Termination Currency and Automatic Early Termination not applicable to Party A and Party B, provided, however, that where the Event of Default specified in Sections 5(a)(vii)(1), (3), (4), (5), (6) of the ISDA Form or, to the extent analogous thereto, Section 5(a)(vii)(8) of the ISDA Form is governed by a system of law which does not permit termination to take place after the occurrence of the relevant Event of Default, then the Automatic Early Termination provision of Section 6(a) of the ISDA Form shall apply to the Defaulting Party) on the Trade Date of the first such Transaction between us. In the event of any inconsistency between the provisions of that agreement and this Confirmation, this Confirmation will prevail for the purpose of this Transaction.
If field 77H specifies DERV as the type of master agreement and if Party A and Party B are parties to a Rahmenvertrag für Finanztermingeschäfte (the German Master Agreement), this Transaction is subject to the terms and conditions of that German Master Agreement.
If Party A and Party B are not parties to a German Master Agreement, this Transaction evidences a complete and binding agreement between Party A and B. Until Party A and B execute and deliver a German Master Agreement, this Transaction and any other transaction between the parties within the scope of the German Master Agreement form a single agreement. Upon execution of the German Master Agreement between Party A and B, this Transaction will become an Einzelabschluß as defined in Section 1(2) of the German Master Agreement.
If some of the standard definitions linked to the agreement specified in field 77H do not apply to the confirmation of a trade under that agreement, a long form confirmation must be sent.
