Part VIIU.K. Financial Markets and Insolvency

Modifications etc. (not altering text)

C1Pt. VII (ss. 154-191): functions of the Secretary of State transferred (7.6.1992) to the Treasury by S.I. 1992/1315, art. 2(1)(c) (with art. 6)

Pt. VII (ss. 154-191) applied (E.W.S.) (15.8.1995) by S.I. 1995/2049, reg.3; and applied (with modifications) (E.W.S.) (15.8.1995) by S.I. 1995/2049, regs.3,4,5,19, 26; and applied (with modifications) (15.7.1996) by S.I. 1996/1469, regs.3, 4, 5

C2Pt. VII: power to apply conferred (1.12.2001) by 2000 c. 8, s. 301(1)(a); S.I. 2001/3538, art. 2(1)

Market propertyE+W+S

177 Application of margin [F1or default fund contribution] not affected by certain other interests.E+W+S

(1)The following provisions have effect with respect to the application by [F2a recognised body] of property (other than land) held by [F3the recognised body] as margin in relation to a market contract [F4or as default fund contribution].

(2)So far as necessary to enable the property to be applied in accordance with the rules of [F5the recognised body] , it may be so applied notwithstanding any prior equitable interest or right, or any right or remedy arising from a breach of fiduciary duty, unless [F5the recognised body] had notice of the interest, right or breach of duty at the time the property was provided as margin [F6or as default fund contribution].

(3)No right or remedy arising subsequently to the property being provided as margin [F7or as default fund contribution] may be enforced so as to prevent or interfere with the application of the property by [F8the recognised body] in accordance with its rules.

(4)Where [F9a recognised body] has power by virtue of the above provisions to apply property notwithstanding an interest, right or remedy, a person to whom [F10the recognised body] disposes of the property in accordance with its rules takes free from that interest, right or remedy.

Textual Amendments

Modifications etc. (not altering text)

C3S. 177 applied (15.8.1995) by S.I. 1995/2049, reg. 25(1)

Commencement Information

I1S. 177 wholly in force at 25.4.1991 see s. 215 and S.I. 1991/878, art. 2, Sch. (subject to certain savings in art. 3(5))