Section 19
Finality of payment and netting arrangement
of Act 627
A payment instruction or settlement shall be valid and enforceable by and against an operator or participant of a designated payment system and shall be final and shall not be revoked, reversed or set aside by any person from the time the payment instruction
‘or settlement is determined to be final under the rules of the designated payment system required to be established under paragraph 14(b) and no order shall be made by any court for the rectification or stay of such payment instruction or settlement.
(2)
A netting arrangement shall be valid and enforceable and an operator or participant of a designated payment system shall do whatever is permitted or required under the netting arrangement in order to give effect to the netting arrangement.
(3)
Any payment or settlement obligations owed to an operator or participant of a designated payment system under the netting arrangement that has not been discharged—
(a)
is provable in insolvency proceedings; and
(b)
may be recovered for the benefit of the creditors.
(4)
Without limiting the generality of subsection 17(2), any payment instruction or settlement that is final and irrevocable under subsection (1) and any netting arrangement that is valid and enforceable under subsections (2) and (3) shall be given effect notwithstanding anything to the contrary contained in—
(a)
sections 223 and 224 of the Companies Act 1965 in relation to avoidance of dispositions of property;
(b)
section 296 of the Companies Act 1965, section 59 of the
Bankruptcy Act 1967 [Act 360] or subsection 40(1) of the Pengurusan Danaharta Nasional Berhad Act 1998
[Act 587] in relation to the disclaiming of onerous property;
22 ; Laws of Malaysia Act 627
(c)
section 219 of the Companies Act 1965 and section 47
of the Bankruptcy Act 1967 in relation to the time of commencement of insolvency;
(d)
section 293 of the Companies Act 1965 and section 53
of the Bankruptcy Act 1967 in relation to undue preference;
and
(e)
section 222 of the Companies Act 1965 and section 10
of the Bankruptcy Act 1967 in relation to the power to stay or restrain proceedings.