Singapore legislation
Section 48
Section 48
Interpretation of this Part
(1)
In this Part, unless the context otherwise requires —
Definition
“default proceedings” means any proceedings or other action taken by an approved clearing house or a recognised clearing house under its default rules;
Definition
“default rules”, in relation to an approved clearing house or a recognised clearing house, means the business rules of the approved clearing house or recognised clearing house which provide for the taking of proceedings or other action if a participant has failed, or appears to be unable or to be likely to become unable, to meet the participant’s obligations for any unsettled or open market contract to which the participant is a party;
Definition
“defaulter” means a participant who is the subject of any default proceedings;
Definition
“foreign corporation” means a corporation which is incorporated or formed outside Singapore;
Definition
“market charge” means a security interest, whether fixed or floating, granted in favour of an approved clearing house, or a recognised clearing house, over market collateral;
Definition
“market collateral” means any property held by or deposited with an approved clearing house or a recognised clearing house, for the purpose of securing any liability arising directly in connection with the ensuring of the performance of market contracts by the approved clearing house or recognised clearing house;
Definition
“market contract” means —
a contract subject to the business rules of an approved clearing house or a recognised clearing house, that is entered into between the approved clearing house or recognised clearing house and a participant pursuant to a novation (however described), whether before or after default proceedings have commenced, which is in accordance with those business rules and for the purposes of the clearing or settlement of transactions using the clearing facility of the approved clearing house or recognised clearing house; or
a transaction which is being cleared or settled using the clearing facility of an approved clearing house or a recognised clearing house, and in accordance with the business rules of the approved clearing house or recognised clearing house, whether or not a novation referred to in paragraph (a) is to take place;
Definition
“property”, in relation to a market charge or market collateral, means —
any money, letter of credit, banker’s draft, certified cheque, guarantee or other similar instrument;
any securities;
any unit in a collective investment scheme;
any derivatives contract; or
any other asset of value acceptable to an approved clearing house or a recognised clearing house;
Definition
“relevant office holder” means —
the Official Assignee exercising his or her powers under the Insolvency, Restructuring and Dissolution Act 2018;
a person acting in relation to a corporation as the liquidator, the provisional liquidator, the receiver, the receiver and manager or the judicial manager of the corporation, or acting in an equivalent capacity in relation to a corporation; or
a person acting in relation to an individual as the trustee in bankruptcy, or the interim receiver of the property, of the individual, or acting in an equivalent capacity in relation to an individual;
Definition
“settlement”, in relation to a market contract, includes partial settlement;
Definition
“Singapore corporation” means a corporation which is incorporated in Singapore.
(2)
Where a charge is granted partly for the purpose specified in the definition of “market charge” in subsection (1) and partly for any other purpose or purposes, the charge is treated as a market charge under this Part insofar as it has effect for that specified purpose.
(3)
Where any collateral is granted partly for the purpose specified in the definition of “market collateral” in subsection (1) and partly for any other purpose or purposes, the collateral is treated as market collateral under this Part insofar as it has been provided for that specified purpose.
(4)
Any references in this Part to the law of insolvency is a reference to —
the Insolvency, Restructuring and Dissolution Act 2018; and
[Deleted by Act 40 of 2018](c)any other written law, whether in Singapore or elsewhere, which is concerned with, or in any way related to, the bankruptcy or insolvency of a person, other than the Banking Act 1970.
(5)
Any reference in this Part to a settlement, in relation to a market contract, is a reference to the discharge of the rights and liabilities of the parties to the market contract, whether by performance, compromise or otherwise.