Singapore legislation
Clause 8
of Payment and Settlement Systems (Finality and Netting) Bill
Clause 8
Proceedings of designated system shall take precedence over law of insolvency
(1)
None of the following shall be regarded as to any extent invalid on the ground of inconsistency with the law for distribution of the assets of a person on 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 transfer order;
any disposition of property in pursuance of such an order;
the default arrangements of a designated system; or
the rules of a designated system as to the settlement of transfer orders not dealt with under its default arrangements.
(2)
The powers of a relevant office holder and the powers of a court under the law of insolvency, shall not be exercised in such a way as to prevent or interfere with —
the settlement of a transfer order in accordance with the rules of a designated system not dealt with under its default arrangements; or
any action taken under its default arrangements.
(3)
A debt or other liability arising out of a transfer order which is the subject of action taken under default arrangements may not be proved in a bankruptcy or winding up until the completion of the action taken under default arrangements.
(4)
A debt or other liability which by virtue of subsection (3) may not be proved shall not be taken into account for the purposes of any set-off until the completion of the action taken under default arrangements.