Section 11

an agreement with a netting provision, in respect of one or more securities borrowing and lending transactions; or

an agreement specified by the Commission to be a qualified capital market agreement for the purposes of this Part;

“netting provision” means a contractual provision which provides that when the events specified by the parties under a qualified capital market agreement occur, two or more debts, claims or obligations can be set-off against each other or be converted into a net debt, claim or obligation and includes close-out netting arrangement;

“securities borrowing and lending” means an arrangement where any securities borrowing and lending transaction is entered into, other than—

transactions entered into between the approved clearing house and participants that is done in accordance with the rules of the approved clearing house; and

transactions in respect of unlisted debt securities effected under the Real Time Electronic Transfer of Funds and Securities (RENTAS) system.

Capital Markets and Services (Amendment)

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Enforceability of rights under netting provision 57b.  (1)  The rights of the parties under a netting provision shall not be stayed, avoided or otherwise limited by the commencement of any other proceeding which has the effect of assuming control or managing the business, affairs and properties to which a party may be subject.

The netting provision of a qualified capital market agreement under subsection (1) shall be enforceable in accordance with its terms.

Application of this Part 57c.  No provision in securities laws or in any other written law, including any written law relating to the management of systemic risk or promoting financial stability, whether enacted before or after the commencement of this Act, shall limit, restrict or otherwise affect the operations of Subdivisions 6

and 7 of this Part.”.

New section 59a