Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 18

Scope of modification of law of insolvency under this Division

Division 3—Finality of transactions and proceedings within designated
systems

(1) The law of insolvency shall have effect in relation to—

   (a)  transfer orders effected through a designated system;

   (b)  action taken under the operating rules of a designated system with
        respect to such orders; and

   (c)  collateral security, subject to the provisions of this Division.

(2) This Division shall apply in relation to bankruptcy and winding up
proceedings in respect of a participant, but shall not apply in relation to
bankruptcy and winding up proceedings in respect of any person who is not a
participant.

(3) For the avoidance of doubt, notwithstanding that rights or liabilities
arising from transfer orders as mentioned in subsection (1)(a) are or may be
dealt with in bankruptcy and winding up proceedings, this Division shall not
apply to such proceedings if they are in respect of any person who is not a
participant.