In force2022 Revised EditionCurrent version · 2022 Revised EditionSee versions on Attorney General's Chambers(opens the publisher’s site)
Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · General
Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · General
Official textFrom Attorney General's Chambers, unchanged
A participant shall notify the operator of a designated system as soon as practicable after the occurrence of any of the following events —
participant
“participant” means a party to an arrangement that establishes a system;
the making of an order for bankruptcy, judicial management or winding up of the participant;
the passing of a resolution for the voluntary winding up of the participant.
Payment and Settlement Systems
(Finality and Netting)
Any participant who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $20,000.
A participant does not contravene subsection (1) if —
he took reasonable steps to comply with that subsection; or
the operator of the designated system was already aware of the relevant event referred to in subsection (1)(a) or (b) by the time the participant was required to notify the operator under that subsection.
designated system
“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
“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;
operator
“operator”, in relation to a designated system, means the person specified in the order referred to in section 3(1) as the operator of the designated system;
participant
“participant” means a party to an arrangement that establishes a system;