Series 28: Close-Out By Seller: Sell-Out Procedures

Close-Out by Seller: Sell-Out Procedures

Sometimes a seller makes a good delivery but the buying firm rejects the transaction, either because it can’t pay for it or because it doesn’t believe it was a good delivery. In such a case, the seller (delivering party) has the option to close out the transaction as early as the day after settlement.

If the buyer refuses to accept delivery in accordance with the terms of the contract, it must attach a Uniform Reclamation Form with the security’s return. As we have seen, this form formally