Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/22

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

Division 5—Miscellaneous 26. Law of insolvency in other jurisdictions

(1) Notwithstanding any law to the contrary, a court shall not recognize or give effect to—
 * (a) an order of a court exercising jurisdiction under the law of insolvency in a place outside Hong Kong; or
 * (b) an act of a person appointed in a place outside Hong Kong to perform a function under the law of insolvency there,

in so far as the making of the order or doing of the act would be prohibited under this Part for a court in Hong Kong or a relevant insolvency officeholder.

(2) In subsection (1), “law of insolvency” (破產清盤法), in relation to a place outside Hong Kong, means any written law or rule of law of the place which is concerned with or in any way related to the bankruptcy, winding up or insolvency of a person.

27. Preservation of rights, etc. in underlying transactions

(1) This Part shall not operate to limit, restrict or otherwise affect—
 * (a) any right, title, interest, privilege, obligation or liability of a person resulting from the underlying transaction in respect of a transfer order which has been entered into a designated system; or
 * (b) any investigation, legal proceedings or remedy in respect of any such right, title, interest, privilege, obligation or liability.

(2) Nothing in subsection (1) shall be construed to require—
 * (a) the unwinding of any netting effected by the system operator of a designated system, whether pursuant to its default arrangements or otherwise;
 * (b) the revocation of any transfer order given by a participant which is entered into a designated system; or
 * (c) the reversal of a payment or settlement made under the operating rules of a designated system.

28. Right of relevant insolvency office-holder to recover gain from transaction at undervalue between 2 participants

(1) This section applies to any transaction between 2 participants in a designated system that—