Singapore legislation

Clause 13

of Payment and Settlement Systems (Finality and Netting) Bill

Clause 13

Netting

Notwithstanding any provision of the law of insolvency, if a court has made an order for bankruptcy or winding up of a participant of a designated system or a resolution for the voluntary winding up of such participant has been passed —

(a)

the operator of the designated system may effect the netting of all obligations owed to or by the participant incurred before or on the day on which the court made the order for bankruptcy or winding up of the participant or the resolution for the voluntary winding up of the participant was passed;

(b)

the obligations that are netted shall be disregarded in the bankruptcy or winding up proceedings;

(c)

any net obligation owed to or by the participant that has not been discharged —

(i)

is payable to the participant and may be recovered for the benefit of the creditors; or

(ii)

is provable in the bankruptcy or winding up,as the case may be; and

(d)

the netting made by the operator of the designated system and any payment made by the participant pursuant thereto shall not be voidable in the bankruptcy or winding up proceedings.

Read in full context — Payment and Settlement Systems (Finality and Netting) Bill →