24.
| (1) Notwithstanding anything to the contrary in any other written law-
| | (i) the settlement rules of a designated clearing and settlement system are valid and binding on the clearing house, the participants, the central counter- party and the Central Bank. Any action may validly be initiated or any payment may be made in accordance with such settlement rules; | | |
| | (ii) the obligation of a participant, a clearing house or a central counter-party to make payments to a participant, and the right of a participant, a clearing house or a central counter-party to receive payments from a participant, clearing house or central counter- party, shall be netted, and a net settlement or close- out amount shall be determined in accordance with the settlement rules of the designated clearing and settlement system, if it is so provided in the rules; and | | |
| | (iii) where the settlement rules of a designated clearing and settlement system provide that the settlement of a payment obligation through an entry to, or a payment out of, an account of a participant, a clearing house or a central counter-party at the ' Central Bank is final and irrevocable, the entry or payment shall not be reversed, repaid or set aside. | | |
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| (2) An entry to or a payment out of the account of a participant, a clearing house or a central counter-party at the Central Bank to settle a payment obligation in a designated clearing and settlement system shall not be the subject of any provision or order that operates as a stay of that activity. |
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| (3) The rights and remedies of a participant, a clearing house, a central counter-party or the Central Bank, with respect to collateral granted to it as security for a payment or the performance of an obligation incurred in a designated clearing and settlement system, may not be affected by insolvency proceedings. In particular, such rights and remedies may not be the subject of any stay provision or order affecting the ability of creditors to exercise rights and remedies with respect to the collateral. |
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| (4) Notwithstanding the fact that all or part of the administration or operation of a designated clearing and settlement system is conducted outside Sri Lanka or that its settlement rules are governed by the laws of a foreign jurisdiction, if a Court in Sri Lanka determines that the rights and obligations of any person arising out of or in connection with the operation of the designated clearing and settlement system are governed in whole or in part by the law of Sri Lanka, the provisions of this section shall be applicable thereto, to such extent as the law of Sri Lanka is applicable in determining those rights and obligations. |
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| (5) In this section "settlement rules" means the effective rules, however made, which provide the basis upon which payment obligations are calculated, netted or settled and includes rules for instituting action where a participant fails or is likely to become unable to meet its obligations to the clearing house, a central counter-party or the other participants respectively. |
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Sri Lanka Consolidated Acts