The Financial Markets and Insolvency (Settlement Finality) Regulations 1999

Modifications of the law of insolvency

13.—(1) The general law of insolvency has effect in relation to—

(a) transfer orders effected through a designated system and action taken under the rules of a designated system with respect to such orders; and

(b) collateral security,

subject to the provisions of this Part.

(2) Those provisions apply in relation to—

(a) insolvency proceedings in respect of a participant in a designated system; and

(b) insolvency proceedings in respect of a provider of collateral security in connection with the functions of a central bank, in so far as the proceedings affect the rights of the central bank to the collateral security;

but not in relation to any other insolvency proceedings, notwithstanding that rights or liabilities arising from transfer orders or collateral security fall to be dealt with in the proceedings.

(3) Subject to regulation 21, nothing in this Part shall have the effect of disapplying Part VII.