Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/26

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

31. Obligation of participant to notify of bankruptcy or winding up

(1) A participant in a designated system shall notify the system operator of the system and the Monetary Authority forthwith if there comes to his knowledge any of the following circumstances occurring in Hong Kong, or any analogous circumstances occurring outside Hong Kong, namely—
 * (a) the presentation of a petition for the bankruptcy or winding up of the participant;
 * (b) the making of an order for bankruptcy or winding up of the participant;
 * (c) the passing of a resolution for voluntary winding up of the participant; or
 * (d) the making of a directors’ voluntary winding up statement in respect of the participant.

(2) A failure by a participant to notify a system operator or the Monetary Authority of a relevant event referred to in subsection (1) within the time required under that subsection is not a contravention of that subsection if the system operator or Monetary Authority (as the case may be) was already aware of the relevant event by that time.

32. Order releasing relevant insolvency office-holder from obligations in relation to default proceedings

A court may, on an application by a relevant insolvency office-holder, make such order as it considers appropriate altering or releasing him from compliance with the functions of his office to the extent that those functions are affected by the fact that action under default arrangements is being or could be taken, or has been or could have been taken.

33. Enforcement of judgments over property of participant as judgment debtor

(1) This section applies to any property of a participant in a designated system that—
 * (a) has been provided as collateral security in favour of a system operator or settlement institution of the system; and
 * (b) is held by or deposited with that system operator or settlement institution for the purpose of securing liabilities arising directly in connection with the clearing or settlement of those transfer orders issued by the participant.

(2) Except with the consent of the system operator or settlement institution mentioned in subsection (1)—