Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 23

Net sum payable on completion of default arrangements provable in insolvency proceedings

(1) This section shall apply with respect to any net sum owed by or to a
defaulting participant on the completion of the action taken under default
arrangements.

(2) Where a court has made an order for bankruptcy or winding up of a
participant, or where a resolution for voluntary winding up of a participant
has been passed or a directors’ voluntary winding up statement in respect of
a participant has taken effect, the net sum referred to in subsection (1)
shall be—

   (a)  provable in the bankruptcy or winding up or, as the case may be,
        payable to the relevant insolvency office-holder; and

   (b)  taken into account, where appropriate, under section 35 of the
        Bankruptcy Ordinance ( Cap 6) (as regards the bankruptcy) or under
        that section as applied under the Companies Ordinance ( Cap 32) (as
        regards the winding up).

(3) Subsection (2) applies notwithstanding section 34 or 35 of the
Bankruptcy Ordinance ( Cap 6) and section 264 of the Companies Ordinance (
Cap 32).