Malaysia legislation

Section 57

of MALAYSIA DEPOSIT INSURANCE CORPORATION (AMENDMENT) ACT 2016

Section 57

Amendment of section 115

(a)

by substituting for subsection (1) the following subsection:

“(1)  Subject to subsection (3), nothing in section 109

shall prevent the termination of any of the following agreements in accordance with their terms or the setting off or the application of amounts payable under such agreements in accordance with their terms, namely—

(a)

a qualified financial agreement;

(b)

a derivative that trades on—

(i)

a derivatives exchange, derivatives board or other regulated market for derivatives;

(ii)

a futures exchange, futures board or other regulated market for futures; or

(iii)

an options exchange, options board or other regulated market for options;

(c)

an agreement to—

(i)

clear or settle securities, futures, options or derivatives transactions; or

(ii)

act as a depository for securities; or

(d)

a margin loan in so far as it is in respect of a securities account or futures account maintained by a financial intermediary.”;

(b)

by deleting subsection (2);

(c)

in subsection (3), by substituting for the words “any agreement referred to in subsection (1)” the words “a qualified financial agreement”;

32

(d)

in subsection (4)—

(i)

by substituting for the words “two or more agreements” the words “two or more qualified financial transactions under a qualified financial agreement”; and

(ii)

by substituting for the words “none of the agreements” the words “none of the qualified financial transactions”;

(e)

in subsection (5), by substituting for the words “an agreement referred to in paragraph (1)(i)” the words

“a qualified financial agreement relating to financial collateral”; and

(f)

in subsection (7), by substituting for the words “an agreement referred to in subsection (1)” the words “a qualified financial agreement”.

Amendment of section 120