(1) Irrevocable money and securities transfer orders entered by a licensed financial institution or licensed financial holding company into a payment or securities settlement system recognized as such by the Central Bank shall be legally enforceable and binding on third parties, even upon a decision revoking the licence and appointing a receiver, but only if the transfer orders become irrevocable before the decision takes effect.
(2) Where a licensed financial institution or licensed financial holding company enters irrevocable money or securities transfer orders into a payment or securities settlement system after the decision revoking the licence and appointing a receiver takes effect and the transfer orders are carried out on the day of the decision, the transfer orders shall be legally enforceable and binding on third parties, unless the receiver proves that the system operator was aware of the decision before the transfer orders became irrevocable.
(3) No provision authorizing the setting aside of contracts and transactions entered into before the appointment of a receiver takes effect shall be applied in a way as to require the unwinding of netting by a payment or securities settlement system recognized by the Central Bank, but the preservation of the netting shall not prevent the ability of the receiver to recover assets directly from the transferee or beneficiary.
(4) For the purposes of subsections (1), (2), and (3) —
(a) a transfer order entered into a money or securities settlement system becomes irrevocable at the time defined by the rules of that system;
(b) “netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant or participants in a settlement system either issue to, or receive from, one or more other participants in that system with the result that only a net claim or a net obligation remains.