Singapore legislation
Clause 69
Clause 69
Proceedings of clearing house shall take precedence over law of insolvency
(1)
The following shall not be to any extent invalid at law on the ground of inconsistency with the law for distribution of the assets of a person on insolvency, bankruptcy or winding up, or on the appointment of a receiver, receiver and manager or an equivalent officer over any of the assets of a person:
a market contract;
a disposition of property pursuant to a market contract;
the provision of market collateral;
a contract effected by a clearing house for the purpose of realising property provided as market collateral, or any disposition of property pursuant to such a contract;
a disposition of property in accordance with the business rules of a clearing house as to the application of property provided as market collateral;
a disposition of property as a result of which the property becomes subject to a market charge, or any transaction pursuant to which that disposition is made;
a disposition of property for the purpose of enforcing a market charge;
a market charge; and
any default proceedings.
(2)
A relevant office holder, or a court applying the law of insolvency in Singapore, shall not exercise its power to prevent or interfere with —
the settlement of a market contract in accordance with the business rules of a clearing house or proceedings or other action taken under those business rules; or
default proceedings.
(3)
Subsection (2) shall not operate to prevent a relevant office holder from recovering an amount under section 75 after the completion of a matter referred to in section 75(3).
(4)
Where a participant which is also a bank licensed under the Banking Act (Cap. 19) becomes insolvent, the liabilities of the bank accorded priority under sections 59A, 61 and 62 of that Act shall have priority over unsecured liabilities of the bank accorded priority under the provisions of this Division.