Singapore legislation
Clause 76
Clause 76
Application of market collateral not affected by certain other interest, etc.
(1)
The provisions of this section shall have effect with respect to the application by a clearing house of property provided as market collateral (referred to as the property).
(2)
The property may be applied in accordance with the business rules of a clearing house so far as it is necessary for it to be so applied notwithstanding —
any prior equitable interest or right, or any right or remedy arising from a breach of fiduciary duty, unless the clearing house had actual notice of the interest, right or breach of duty (but not including any interest or right arising from the situation referred to in paragraph (b)), as the case may be, at the time the property was provided as market collateral; or
that the property is deposited by the clearing house in a trust account held for the benefit of a participant.
(3)
No right or remedy arising subsequent to the provision of the property as market collateral may be enforced to prevent or interfere with the application of the property by the clearing house in accordance with its business rules.
(4)
Where a clearing house has power under this section to apply the property notwithstanding an interest, right or remedy, a person to whom the clearing house disposes of the property in accordance with its business rules shall take free from that interest, right or remedy.