Singapore legislation
Clause 2
of Payment and Settlement Systems (Finality and Netting) Bill
Clause 2
Interpretation
(1)
In this Act, unless the context otherwise requires —
Definition
“Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186);
Definition
“book-entry Government securities” means any securities issued by the Government under any written law transferable by a book-entry on a register or otherwise;
Definition
“default arrangements” means the arrangements put in place by a designated system to limit systemic and other types of risk which arise in the event of a participant appearing to be unable, or likely to become unable, to meet its obligations in respect of a transfer order, including any arrangements for —
netting; or
the closing out of open positions;
Definition
“defaulter” means a person in respect of whom action has been taken by a designated system under its default arrangements;
Definition
“designated system” means a system that is designated by the Authority under section 3 to be a designated system for the purposes of this Act;
Definition
“disposition of property” includes a payment made into or out of an account of a participant;
Definition
“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant either issues to, or receives from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
Definition
“operator”, in relation to a designated system, means the person specified in the order referred to in section 3(1) as the operator of the designated system;
Definition
“participant” means a party to an arrangement that establishes a system;
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, 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 institution”, in relation to a designated system, means a body corporate providing accounts for the participants of the designated system to hold funds and to settle transactions between participants in the designated system;
Definition
“system” means a system established for —
the clearing or settlement of payment obligations; or
the clearing, settlement or transfer of book-entry Government securities;
Definition
“transfer order” means —
an instruction by a participant to place at the disposal of a recipient an amount of money by means of a book-entry on the accounts of a settlement institution for a designated system, or an instruction which, when settled, results in the assumption or discharge of a payment obligation as defined by the rules of a designated system; or
an instruction by a participant to transfer book-entry Government securities.
(2)
A reference in this Act to the law of insolvency shall be construed as a reference to —
the Bankruptcy Act (Cap. 20);
Parts VIIIA, IX and X of the Companies Act (Cap. 50); and
any other written law or rule of law whether of Singapore or a place outside Singapore which is concerned with or in any way related to the bankruptcy, winding up or insolvency of a person.