Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · Preliminary
2. Interpretation
Official textFrom Attorney General's Chambers, unchanged
In this Act, unless the context otherwise requires —
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010
(S 103/2010);
[S 17/2021]
“book-entry securities” means any securities issued under any written law transferable by a book-entry on a register or otherwise;
“default arrangements” means the arrangements put in place by a designated system to limit systemic and other types of risk which arise in the event of a participant appearing to be unable, or likely to become unable, to meet its obligations in respect of a transfer order, including any arrangements for —
netting; or
the closing out of open positions;
“defaulter” means a person in respect of whom action has been taken by a designated system under its default arrangements;
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“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;
“disposition of property” includes a payment made into or out of an account of a participant;
“Minister” means the Minister of Finance and Economy;
“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”, 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” means a party to an arrangement that establishes a system;
“relevant office holder” means —
the Official Receiver exercising his powers under the
Bankruptcy Act (Chapter 67);
a person acting in relation to a company as its liquidator, receiver, receiver and manager, judicial manager or an equivalent officer; or
a person acting in relation to an individual as his trustee in bankruptcy or interim receiver of his property or an equivalent officer;
“settlement institution”, in relation to a designated system, means a body corporate providing accounts for the participants of the designated system to hold funds and to settle transactions between participants in the designated system;
“system” means a system established for —
the clearing or settlement of payment obligations; or
the clearing, settlement or transfer of book-entry securities;
Payment and Settlement Systems
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“transfer order” means —
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
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 reference in this Act to the law of insolvency shall be construed as a reference to —
the Bankruptcy Act (Chapter 67);
Parts 4 and 5 of the Insolvency Act (Chapter 247); and
any other written law or rule of law whether of Brunei
Darussalam or a place outside Brunei Darussalam which is concerned with or in any way related to the bankruptcy, winding up or insolvency of a person.
Part
Transactions Effected Through Designated System
Part
Netting
Part