Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 24

Transfer orders entered into designated system after insolvency not affected

(1) This Division shall not apply in relation to any transfer order given by a
participant in a designated system which is entered into the designated system
after—

   (a)  the expiry of the day on which—

        (i)    a court makes an order for bankruptcy or winding up of the
               participant;

        (ii)   a resolution for voluntary winding up of the participant is
               passed; or

        (iii)  a directors’ voluntary winding up statement in respect of the
               participant takes effect; or

   (b)  the receipt by the system operator of notice of the event specified in
        paragraph (a), whichever first occurs.

(2) Reference in subsection (1) to the expiry of the day on which an event
specified in subsection (1)(a) occurs in relation to a participant in a
designated system is a reference to—

   (a)  the expiry of that day according to Hong Kong time; or

   (b)  the expiry of the same calendar day according to local time in the
        place where the designated system is established, whichever is the
        later.

(3) For the purposes of subsection (1)(b), a system operator shall be taken to
have received notice of an event mentioned in subsection

(1)(a) if he deliberately failed to make enquiries as to that matter in
circumstances in which a reasonable and honest person would have done so.