No. 7/2018
[NSOLVENCY
(c)
Cap. 6:07
the opening or closing of a market participant's position; or
(d) the revocation of settlement instructions;
are upon the date of liquidation of the estate of the market participant binding on the
liquidator in respect of any transaction or contract concluded by the market participant
prior to such date of liquidation or settlement which was overdue on the date of
liquidation.
(6) If upon the liquidation of the estate of a debtor who is a licensed market
participant, the assets held in nominee accounts or any such assets managed on behalf
of third parties, shall not form part of the assets of the debtor.
(7) Sections 22 and 24 of this Act do not apply to property disposed of in
accordance with the rules.
36
Agreements providing for termination and netting
(l) In this section 'master agreement' means-
(a)
an agreement in accordance with standard terms published by the
International Swaps and Derivatives Association, the International
Securities Lenders Association, the Bond Market Association or the
International Securities Market Association, or any similar agreement,
which provides that, upon the liquidation of one of the parties(i) all unperformed obligations of the parties in terms of the agreementA. terminate or may be terminated; or
B. become or may become due immediately;
and
(ii) the values of the unperformed obligations are determined or may
be determined; and
(iii) the values are netted or may be netted, so that only a net amount
(whether in the currency of Republic of Zimbabwe or any other
currency) is payable to or by a party and which may further provide
that the values of assets which have been transferred as collateral
security for obligations under that agreement shall be included in
the calculation of the net amount payable upon liquidation;
or
(b) any agreement declared by the Minister, after consultation with the
Minister responsible for Finance, by notice in the Gazette to be a master
agreement for the purposes of this section.
(2) Notwithstanding any common law rule to the contrary, all unperformed
obligations arising out of one or more master agreements between the parties, or
obligations arising from such agreement or agreements in respect of assets in which
ownership has been transferred as collateral security, shall, upon the liquidation of
the estate of a party to such master agreement, terminate automatically at the date of
liquidation.
(3) The values of obligations referred to in subsection (2) shall be calculated
at market value as at that date and such values so calculated shall be netted and the net
amount shall be payable.
(4) The provisions of this section shall not apply to-
(a)
(b)
a transaction contemplated in section 35;
or
a netting arrangement contemplated in the National Payment System Act
[Chapter 24:23].
(5) Sections 24, 26, 27 and 185(2) of this Act shall not apply to dispositions
in terms of a master agreement.
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