Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · Transactions Effected Through Designated System
12. Transfer orders entered into designated system after insolvency
Official textFrom Attorney General's Chambers, unchanged
This Part does not apply in relation to any transfer order given by a participant which is entered into a designated system after the expiry of the day on which —
transfer order
“transfer order” means — (a) an instruction by a participant to place at the disposal of a recipient an amount of money by means of a book-entry on the accounts of a settlement institution for a designated system, or an instruction which, when settled, results in the assumption or discharge of a payment obligation as defined by the rules of a designated system; or (b) an instruction by a participant either to settle an obligation for the transfer of book-entry securities, or for the transfer of such securities.
a court made an order for bankruptcy, judicial management or winding up in respect of the participant; or
participant
“participant” means a party to an arrangement that establishes a system;
a resolution for the voluntary winding up of the participant was passed.
Payment and Settlement Systems
(Finality and Netting)
netting
“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant either issues to, or receives from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
Terms defined in s 2
designated system
Defined · s 2“designated system” means a system that is designated by the Authority under section 3 to be a designated system for the purposes of this Act;
netting
Defined · s 2“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant either issues to, or receives from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
participant
Defined · s 2“participant” means a party to an arrangement that establishes a system;
transfer order
Defined · s 2“transfer order” means — (a) an instruction by a participant to place at the disposal of a recipient an amount of money by means of a book-entry on the accounts of a settlement institution for a designated system, or an instruction which, when settled, results in the assumption or discharge of a payment obligation as defined by the rules of a designated system; or (b) an instruction by a participant either to settle an obligation for the transfer of book-entry securities, or for the transfer of such securities.
Part
Netting
Part