Netting of Financial Agreements Act 2015 · Updated to 6 Mar 2015 · Part II · Netting Provision
4. Form of financial collateral
Official textFrom Laws of Malaysia Online, unchanged
The application of this Act in relation to financial collateral shall only extend to financial collateral provided in the form of—
financial collateral
“financial collateral” means an interest or a right that secures payment or performance of an obligation under a qualified financial agreement; netting of financial agreements act 2015
cash or cash equivalents, including negotiable instruments and demand deposits;
securities, a securities account or a right to acquire securities; or
securities
“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7
futures agreement or futures account.
Feature of qualified financial transaction
qualified financial transaction
“qualified financial transaction” means the transaction referred to in section 5 and includes any other transaction prescribed by the Minister to be a qualified financial transaction under paragraph 6(1)(c);
Terms defined in s 2
financial collateral
Defined · s 2“financial collateral” means an interest or a right that secures payment or performance of an obligation under a qualified financial agreement; netting of financial agreements act 2015
qualified financial transaction
Defined · s 2“qualified financial transaction” means the transaction referred to in section 5 and includes any other transaction prescribed by the Minister to be a qualified financial transaction under paragraph 6(1)(c);
securities
Defined · s 2“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7