Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 45

Proceedings of recognized clearing house take precedence over law of insolvency

(1) None of the following shall be regarded as to any extent invalid at law on
the ground of inconsistency with the law relating to distribution of the
assets of a person on insolvency, bankruptcy or winding up, or on the
appointment of a receiver over any of the assets of a person-

   (a)  a market contract;

   (b)  the rules of a recognized clearing house relating to the settlement of
        a market contract;

   (c)  any proceedings or other action taken under the rules of a recognized
        clearing house relating to the settlement of a market contract;

   (d)  a market charge;

   (e)  the default rules of a recognized clearing house; or

   (f)  any default proceedings.

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

   (a)  the settlement in accordance with the rules of a recognized clearing
        house of a market contract; or

   (b)  any default proceedings.

(3) Subsection (2) shall not operate to prevent a relevant  office-holder from
recovering an amount under section 51 after the completion of a matter
referred to in paragraph (a) or (b) of that subsection.