# The Financial Markets and Insolvency (Settlement Finality) Regulations 1999, Regulation 15: Net sum payable on completion of action taken under default arrangements

Extent: E+W+S+N.I.

(1) The following provisions apply with respect to any sum which is owed on completion of action taken under default arrangements of a designated system by or to a defaulter but do not apply to any sum which (or to the extent that it) arises from a transfer order which is also a market contract within the meaning of Part VII or Part V, in which case sections 162 and 163 of the Companies Act 1989 or Articles 85 and 86 of the Companies (No. 2) (Northern Ireland) Order 1990 apply subject to the modification made by regulation 21.
(2) If, in England and Wales or Northern Ireland, a bankruptcy , winding-up or administration order has been made or a creditors' voluntary winding-up resolution has been passed, the debt—
(a) is provable in the bankruptcy , winding-up or administration or, as the case may be, is payable to the relevant office-holder; and
(b) shall be taken into account, where appropriate, under section 323 of the Insolvency Act 1986 or Article 296 of the Insolvency (Northern Ireland) Order 1989 or rule 14.24 of the Insolvency (England and Wales) Rules 2016 or Rule 2.086 of the Insolvency Rules (Northern Ireland) 1991 (mutual dealings and set-off) or the corresponding provision applicable in the case of winding up or administration;
in the same way as a debt due before the commencement of bankruptcy, the date on which the body corporate goes into liquidation (within the meaning of section 247 of the Insolvency Act 1986 or Article 6 of the Insolvency (Northern Ireland) Order 1989) or enters into administration (within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 or paragraph 2 of Schedule B1 to the Insolvency (Northern Ireland) Order 1989) or, in the case of a partnership, the date of the winding-up order.
(3) If, in Scotland, an award of sequestration or a winding-up order has been made, or a creditors' voluntary winding-up resolution has been passed, or a trust deed has been granted and it has become a protected trust deed, the debt—
(a) may be claimed in the sequestration or winding up or under the protected trust deed or, as the case may be, is payable to the relevant office-holder; and
(b) shall be taken into account for the purposes of any rule of law relating to set-off applicable in sequestration, winding up or in respect of a protected trust deed;
in the same way as a debt due before the date of sequestration (within the meaning of section 73(1) of the Bankruptcy (Scotland) Act 1985) or the commencement of the winding up (within the meaning of section 129 of the Insolvency Act 1986) or the grant of the trust deed.
(4) A reference in this regulation to “administration order” shall include—
(a) the appointment of an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 or under paragraph 15 or 23 of Schedule B1 to the Insolvency (Northern Ireland) Order 1989;
(b) the making of an order under section 8 of that Act as it has effect by virtue of section 249(1) of the Enterprise Act 2002; and
(c) the making of an order under Article 21 of that Order as it has effect by virtue of Article 4(1) of the Insolvency (Northern Ireland) Order 2005;
and “administration” shall be construed accordingly.

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Source: https://www.legislation.gov.uk/uksi/1999/2979/regulation/15 (the official version)
Page: https://openlegislation.uk/financial-markets-and-insolvency-settlement-finality-regulations-1999/regulation-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.