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CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

23. Net sum payable on completion of default arrangements provable in insolvency proceedings

(1) This section shall apply with respect to any net sum owed by or to a defaulting participant on the completion of the action taken under default arrangements.

(2) Where a court has made an order for bankruptcy or winding up of a participant, or where a resolution for voluntary winding up of a participant has been passed or a directors’ voluntary winding up statement in respect of a participant has taken effect, the net sum referred to in subsection (1) shall be—
 * (a) provable in the bankruptcy or winding up or, as the case may be, payable to the relevant insolvency office-holder; and
 * (b) taken into account, where appropriate, under section 35 of the Bankruptcy Ordinance (Cap. 6) (as regards the bankruptcy) or under that section as applied under the Companies Ordinance (Cap. 32) (as regards the winding up).

(3) Subsection (2) applies notwithstanding section 34 or 35 of the Bankruptcy Ordinance (Cap. 6) and section 264 of the Companies Ordinance (Cap. 32).

24. Transfer orders entered into designated system after insolvency not affected

(1) This Division shall not apply in relation to any transfer order given by a participant in a designated system which is entered into the designated system after—
 * (a) the expiry of the day on which—
 * (i) a court makes an order for bankruptcy or winding up of the participant;
 * (ii) a resolution for voluntary winding up of the participant is passed; or
 * (iii) a directors’ voluntary winding up statement in respect of the participant takes effect; or
 * (b) the receipt by the system operator of notice of the event specified in paragraph (a),

whichever first occurs.

(2) Reference in subsection (1) to the expiry of the day on which an event specified in subsection (1)(a) occurs in relation to a participant in a designated system is a reference to—
 * (a) the expiry of that day according to Hong Kong time; or