Islamic Financial Services Act 2013 · s 52

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52.
Finality of payment and netting arrangement
(1) A transfer order shall be valid and enforceable by and against an operator or a participant of a certified designated payment system and shall be final and shall not be revoked, reversed or set aside by any person from the time the transfer order is determined to be final under the rules of the certified designated payment system required to be established under paragraph 45(2)(a) and no order shall be made by any court for the rectification or stay of such transfer order.
(2) A netting arrangement shall be valid and enforceable and an operator or a participant of a certified 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 a participant of a certified 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 creditors.
(4) Without limiting the generality of subsection 50(2), any transfer order 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 the avoidance of dispositions of property;

*NOTE—The Companies Act 1965 [Act 125] has since been repealed by the Companies Act 2016
[Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.

84
(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 an onerous property;
(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.

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s 52Finality of payment and netting arrangement

(1)

A transfer order shall be valid and enforceable by and against an operator or a participant of a certified designated payment system and shall be final and shall not be revoked, reversed or set aside by any person from the time the transfer order is determined to be final under the rules of the certified designated payment system required to be established under paragraph 45(2)(a) and no order shall be made by any court for the rectification or stay of such transfer order.

(2)

A netting arrangement shall be valid and enforceable and an operator or a participant of a certified 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 a participant of a certified 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 creditors.

(4)

Without limiting the generality of subsection 50(2), any transfer order 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 the avoidance of dispositions of property;

*NOTE—The Companies Act 1965 [Act 125] has since been repealed by the Companies Act 2016

[Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.

(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 an onerous property;

(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.