Singapore legislation
Clause 49
Clause 49
Interpretation of this Part
(1)
In this Part, unless the context otherwise requires —
Definition
“default proceedings” means proceedings or other action taken by a clearing house under its default rules;
Definition
“default rules”, in relation to a clearing house, means the business rules of a clearing house which provide for the taking of proceedings or other action if a participant has failed, or appears to be unable, or likely to become unable, to meet his obligations for all unsettled or open market contracts to which he is a party;
Definition
“defaulter” means a participant who is the subject of any default proceedings;
Definition
“market charge” means a security interest, whether fixed or floating, granted in favour of a clearing house —
over property held by or deposited with the clearing house; and
to secure liabilities arising directly in connection with the clearing house ensuring the performance of a market contract;
Definition
“market collateral” means property held by or deposited with a clearing house for the purpose of securing liabilities arising directly in connection with the clearing house ensuring the performance of market contracts;
Definition
“market contract” means —
a contract subject to the business rules of a clearing house entered into by the clearing house with a participant pursuant to a novation (however described) which is both in accordance with those business rules and for the purposes of the clearing or settlement of transactions using the clearing facility and subject to the business rules of a clearing house whether before or after default proceedings have commenced; or
a transaction which is being cleared or settled using the clearing facility and subject to the business rules of a clearing house, whether or not a novation referred to in paragraph (a) is to take place;
Definition
“participant” means a person who, under the business rules of a clearing house, may participate in one or more of the services provided by the clearing house in its capacity as a clearing house;
Definition
“property” means —
money, letters of credit, banker’s drafts, certified cheques, guarantees or other similar instruments;
securities;
futures contracts and any similar financial contracts; or
other assets of value acceptable to the clearing house;
Definition
“relevant office holder” means —
the Official Assignee exercising his powers under the Bankruptcy Act (Cap. 20);
a person acting in relation to a company as its liquidator, provisional liquidator, receiver, receiver and manager, judicial manager or an equivalent officer; or
a person acting in relation to an individual as his trustee in bankruptcy or interim receiver of his property or an equivalent officer;
Definition
“settlement”, in relation to a market contract, includes partial settlement.
(2)
Where a charge is granted partly for the purpose specified in the definition of “market charge” and partly for other purposes, the charge shall be treated as a market charge under this Part in so far as it has effect for that specified purpose.
(3)
Where collateral is granted partly for the purpose specified in the definition of “market collateral” and partly for other purposes, the collateral shall be treated as market collateral under this Part in so far as it has been provided for that specified purpose.
(4)
References in this Part to the law of insolvency are references to —
the Bankruptcy Act (Cap. 20);
Parts VIIIA, IX and X of the Companies Act (Cap. 50); and
any other written law whether of Singapore or a place outside Singapore which is concerned with or in any way related to the bankruptcy or insolvency of a person,but does not include the Banking Act (Cap. 19).
(5)
References in this Part to settlement in relation to a market contract are references to the discharge of the rights and liabilities of the parties to the market contract, whether by performance, compromise or otherwise.