Payment and Settlement Systems (Finality and Netting) Act 2002 · 2020 Revised Edition · Part 3 · Netting
13. Netting
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Despite 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 the participant has been passed —
participant
“participant” means a party to an arrangement that establishes a system;
the operator of the designated system may effect the netting of all obligations owed to or by the participant incurred up to and including one business day after 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;
operator
“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;
the obligations that are netted are to be disregarded in the bankruptcy or winding up proceedings;
any net obligation owed to or by the participant that has not been discharged —
is payable to the participant and may be recovered for the benefit of the creditors; or
is provable in the bankruptcy or winding up,as the case may be; and
the netting made by the operator of the designated system and any payment made by the participant pursuant to the netting is not voidable in the bankruptcy or winding up proceedings.
netting
“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;