Regulation 13 Financial collateral arrangements to be enforceable where collateral-taker not aware of commencement of winding-up proceedings or reorganisation measures
United Kingdom
Where any of the events specified in paragraph (2) occur on the day of, but after the moment of commencement of, winding-up proceedings or reorganisation measures those events, arrangements and obligations shall be legally enforceable and binding on third parties if the collateral-taker can show that he was not aware, nor should have been aware, of the commencement of such proceedings or measures.
The events referred to in paragraph (1) are—
a financial collateral arrangement coming into existence;
a relevant financial obligation secured by a financial collateral arrangement coming into existence; or
the delivery, transfer, holding, registering or other designation of financial collateral so as to be in the possession or under the control of the collateral-taker.
For the purposes of paragraph (1)—
the commencement of winding-up proceedings means the making of a winding-up order F1or, in the case of a Scottish partnership, the award of sequestration by the court; and
commencement of reorganisation measures means the appointment of an administrator, whether by a court or otherwise F2or, in the case of a Scottish partnership, the date of registration of a protected trust deed.
Annotations
Textual amendments
- F1
Words in reg. 13(3)(a) inserted (6.4.2011) by The Financial Markets and Insolvency (Settlement Finality and Financial Collateral Arrangements) (Amendment) Regulations 2010 (S.I. 2010/2993), regs. 1, 4(11)(a) (with reg. 3)
- F2
Words in reg. 13(3)(b) inserted (6.4.2011) by The Financial Markets and Insolvency (Settlement Finality and Financial Collateral Arrangements) (Amendment) Regulations 2010 (S.I. 2010/2993), regs. 1, 4(11)(b) (with reg. 3)