Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 52

Application of market collateral not affected by certain other interests, etc.

(1) The provisions of this section have effect with respect to the application
by a recognized clearing house of property provided as market  collateral.

(2) So far as necessary to enable the property to be applied in accordance
with the rules of a recognized clearing house, it may be so applied
notwithstanding any prior equitable interest or right, or any right or remedy
arising from a breach of fiduciary duty, unless the clearing house had actual
notice of the interest, right or breach of duty

(as the case may be) at the time the property was provided as market 
collateral.

(3) No right or remedy arising subsequently to the property being provided as
market collateral may be enforced so as to prevent or interfere with the
application of the property by the recognized clearing house in accordance
with its rules.

(4) Where a recognized clearing house has power by virtue of the provisions of
this section to apply property notwithstanding an interest, right or remedy, a
person to whom the clearing house disposes of the property in accordance with
its rules takes free from that interest, right or remedy.