OpenLegislation

Section 177 Application of margin or default fund contribution not affected by certain other interests.F10I1C1

England, Wales and Scotland

(1)

The following provisions have effect with respect to the application by F1a recognised body of property (other than land) held by F2the recognised body as margin in relation to a market contract F3or as default fund contribution.

(2)

So far as necessary to enable the property to be applied in accordance with the rules of F4the recognised body , it may be so applied notwithstanding any prior equitable interest or right, or any right or remedy arising from a breach of fiduciary duty, unless the recognised body had notice of the interest, right or breach of duty at the time the property was provided as margin F5or as default fund contribution.

(3)

No right or remedy arising subsequently to the property being provided as margin F6or as default fund contribution may be enforced so as to prevent or interfere with the application of the property by F7the recognised body in accordance with its rules.

(4)

Where F8a recognised body has power by virtue of the above provisions to apply property notwithstanding an interest, right or remedy, a person to whom F9the recognised body disposes of the property in accordance with its rules takes free from that interest, right or remedy.

Annotations

Textual amendments

F1

Words in s. 177(1) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(a) (with regs. 7(4), 9(1))

F2

Words in s. 177(1) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(b) (with regs. 7(4), 9(1))

F3

Words in s. 177(1) inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(13)(b)

F4

Words in s. 177(2) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(b) (with regs. 7(4), 9(1))

F5

Words in s. 177(2) inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(13)(b)

F6

Words in s. 177(3) inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(13)(c)

F7

Words in s. 177(3) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(b) (with regs. 7(4), 9(1))

F8

Words in s. 177(4) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(c) (with regs. 7(4), 9(1))

F9

Words in s. 177(4) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(21)(b) (with regs. 7(4), 9(1))

F10

Words in s. 177 heading inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(13)(a)

Modifications

C1

S. 177 applied (15.8.1995) by S.I. 1995/2049, reg. 25(1)

Commencement

I1

S. 177 wholly in force at 25.4.1991 see s. 215 and S.I. 1991/878, art. 2, Sch. (subject to certain savings in art. 3(5))

Notes on Part VII

Modifications

C1

Pt. VII (ss. 154-191): functions of the Secretary of State transferred (7.6.1992) to the Treasury by S.I. 1992/1315, art. 2(1)(c) (with art. 6)

Pt. VII (ss. 154-191) applied (E.W.S.) (15.8.1995) by S.I. 1995/2049, reg.3; and applied (with modifications) (E.W.S.) (15.8.1995) by S.I. 1995/2049, regs.3,4,5,19, 26; and applied (with modifications) (15.7.1996) by S.I. 1996/1469, regs.3, 4, 5

C2

Pt. VII: power to apply conferred (1.12.2001) by 2000 c. 8, s. 301(1)(a); S.I. 2001/3538, art. 2(1)