In the event of a Secondary Default Event, all Clients’ Assets shall be treated as a pooled and deposited in an independent account with a Local Bank or the Licensed Person Clients’ account held with the defaulted person pursuant to Article (3-4-1) and shall be treated in the following way: 1. Any shortfall in Clients’ funds held shall be borne by all the clients rateably in accordance with their entitlements, unless a breach of the Licensed Person’s obligations stipulated herein would then occur. 2. The Licensed Person’s accounts and registers shall be amended to reflect the result of applying paragraph 1 of this Article. The Licensed Person shall prepare a record showing the total shortfall resulting from the Secondary Default Event and each Client’s share thereof. The Authority may require implementation of any action or procedure differing from the actions set out above to resolve any Secondary Default Event.