Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/18

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

(3) For the avoidance of doubt, notwithstanding that rights or liabilities arising from transfer orders as mentioned in subsection (1)(a) are or may be dealt with in bankruptcy and winding up proceedings, this Division shall not apply to such proceedings if they are in respect of any person who is not a participant.

19. Transfers and settlements within designated systems are final

(1) This section applies to any transfer or settlement of the following description that is effected through a designated system the operating rules of which provide that such a transfer or settlement is final and irrevocable—
 * (a) a transfer of funds into or out of an account of a participant;
 * (b) a settlement of a payment obligation; or
 * (c) a settlement of an obligation for the transfer of book-entry securities, or the transfer of such securities.

(2) Notwithstanding anything to the contrary in any written law or rule of law, a transfer or settlement to which this section applies shall not be liable—
 * (a) to be reversed, repaid or set aside; or
 * (b) to an order made by a court for the rectification or stay of such transfer or settlement.

20. Proceedings of designated systems take precedence over law of insolvency

(1) None of the following shall be regarded as to any extent invalid on the ground of inconsistency with the law of insolvency regarding distribution of the assets of a person on bankruptcy or winding up, or on the appointment of a liquidator, trustee in bankruptcy or equivalent officer over any of the assets of a person—
 * (a) a transfer order;
 * (b) any disposition of property in pursuance of a transfer order;
 * (c) the default arrangements of a designated system;
 * (d) the operating rules of a designated system as to the settlement of transfer orders not dealt with under its default arrangements; or
 * (e) a contract for the purpose of realizing collateral security in connection with participation in a designated system otherwise than pursuant to its default arrangements.

(2) The powers of a relevant insolvency office-holder in his capacity as such and the powers of a court under the law of insolvency, shall not be exercised in such a way as to prevent or interfere with—