# The Banking Act 2009 (Restriction of Partial Property Transfers) (Recognised Central Counterparties) Order 2014, Article 3: Protected rights and liabilities


(1) A partial property transfer to which this Order applies may not provide for the transfer of some, but not all, of the protected rights and liabilities between a particular person (“P”) and a recognised central counterparty.
(2) A partial property transfer to which this Order applies may not include provision under the continuity powers which terminates or modifies the protected rights or liabilities between P and a recognised central counterparty.
(3) For the purposes of paragraphs (1) and (2), rights and liabilities between P and a recognised central counterparty are protected if either paragraph (4) or paragraph (5) applies.
(4) This paragraph applies where—
(a) the recognised central counterparty has established a separate default fund for a particular class or classes of financial instruments in accordance with Article 42(4) of the EMIR Regulation; and
(b) the rights and liabilities—
(i) are recorded in the accounts of the recognised central counterparty as positions in the class or classes financial instruments referred to in sub-paragraph (a) or as assets held to cover those positions; or
(ii) arise out of the clearing members’ contributions to the separate default fund referred to in sub-paragraph (a).
(5) This paragraph applies where—
(a) the recognised central counterparty has established a single default fund in accordance with Article 42 of the EMIR regulation; and
(b) the rights and liabilities—
(i) are recorded in the accounts of the recognised central counterparty; or
(ii) arise out of the clearing members’ contributions to the single default fund referred to in sub-paragraph (a).
(6) For the purposes of paragraph (1), a property transfer instrument which purports to transfer all of the protected rights and liabilities between P and a recognised central counterparty shall be treated as having done so effectively (and so not give rise to a contravention of paragraph (1)), notwithstanding the possibility that any of the protected rights or liabilities are foreign property and may not have effectively been transferred by the property transfer instrument or by virtue of steps taken under section 39 of the Act.
(7) In this article—
(a) “clearing member” has the meaning given by Article 2(14) of the EMIR Regulation;
(b) “EMIR Regulation” means Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116234/article/3 (the official version)
Page: https://openlegislation.uk/draft-banking-act-2009-restriction-of-partial-property-transfers-recognised-central-counterparties-order-2014/article-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.