Revised Laws of Saint Lucia (2021)

22.   Utilisation of deposits, etc., FULL

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   (1)   Despite anything to the contrary in the Commercial Code, Title IX, the Companies Act or sections 50, 51 and 55 of the Banking Act any asset of a settling participant which is provided prior to the issue of any bankruptcy, winding-up or receivership order against that system participant to—

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      (a)     the Central Bank;

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      (b)     an operator; or

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      (c)     central counterparty,

as security in respect of its payment or settlement obligations, may be utilised by the Central Bank, the operator, a funds transfer system in settlement system or the central counterparty to the extent required for the discharge of such settlement obligations of the system participant.

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   (2)   Notwithstanding anything in the Commercial Code, Title IX, or the Companies Act, or sections 50, 51 and 55 of the Banking, if a settling participant goes into bankruptcy, receivership or is wound-up—

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      (a)     any provision contained in a written netting agreement to which that system participant is a party;

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      (b)     any provision contained in the rules of the settlement system or in clearing, netting and settlement agreements to which that settling participant is a party; or

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      (c)     any rules and practices applicable to the settling participant,

are binding upon the liquidator, receiver or administrator in respect of any payment or settlement obligation—

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   (i)     which has been determined through netting prior to the issue of the bankruptcy, winding-up or receivership order, and

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   (ii)     which is to be discharged on or after the date of the winding-up, receivership or bankruptcy, or the discharge of which was overdue on the date of the winding-up, receivership or bankruptcy order.

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   (3)   A settling participant against which a bankruptcy, winding-up or receivership application has been lodged is prohibited from clearing or participating in any settlement system other than for the purposes of discharging payment obligations.

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   (4)   Notwithstanding the Commercial Code, Title IX, the rights and remedies of a participant, clearing house or central counter-party or the Central Bank to realise any collateral granted to it as security for a payment or the performance of an obligation incurred in a net settlement system may not be the subject of any stay provision or court order.

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   (5)   A settling participant who participates in any settlement system in violation of the provisions of subsection (3) commits an offence and is liable on summary conviction to a fine not exceeding $50,000.